Panera bread company case study

Panera Bread Company Case Study Finance Analysis

This spreadsheet supports STUDENT analysis of the case "Panera Bread Company" (UVA-F-1575).
This spreadsheet was prepared by Marc Lipson, Associate Professor of Business Administration. Copyright © 2009 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. For customer service inquiries, send an e-mail tosales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, posted to the Internet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation.
Rev. Jun. 21, 2012
Exhibit 1 - Income Statement
Exhibit 1
PANERA BREAD COMPANY
Historic Income Statements
(n thousands of dollars)
2003 2004 2005 2006
Number of Bakery Cafés(a) 602 741 877 1,027
Revenue 363,702 479,139 640,275 828,971
Costs of Goods Sold
Bakery Café 210,822 288,706 399,760 542,916
Dough Sold to Franchisees 54,967 65,627 75,036 85,618
Depreciation 18,304 25,298 33,011 44,166
General and Administrative (b) 31,502 38,735 50,240 63,502
315,595 418,366 558,047 736,202
Operating Profit (EBIT) 48,107 60,773 82,228 92,769
Interest Expense 48 18 50 92
Pretax Profit 48,059 60,755 82,178 92,677
Tax 17,629 22,175 29,995 33,827
Net Income 30,430 38,580 52,183 58,850
(a) Including both company-owned and franchised bakery cafés
(b) Includes pre-opening expenses and other expenses
Data source: Panera Bread Company annual reports, 2003–06.
Exhibit 2 - Balance Sheet
Exhibit 2
PANERA BREAD COMPANY
Historic Balance Sheets
(in thousands of dollars)
Historic Balance Sheets:
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cash and Short Term Investments 51,421 58,054 60,651 72,122 90152.5 90153 75728 75728 75728 75728
Accounts Receivable 12,394 17,256 25,158 30,919 38648.75 38649 32465 32465 32465 32465
Inventory 4,350 5,398 7,358 8,714 10892.5 10893 9150 9150 9150 9150
Prepaid Expenses and Deferred Taxes 3,887 3,905 9,607 15,863 19828.75 19829 16656 16656 16656 16656
Current Assets 72,052 84,613 102,774 127,618 159522.5 159522.5 133999 133999 133999 133999
Property, Plant and Equipment 146,362 201,725 268,809 345,977 432471.25
Goodwill and Other Assets 38,421 38,334 66,084 69,014
Total Assets 256,835 324,672 437,667 542,609
Accounts Payable 8,072 5,840 4,422 5,800
Acrued Expenses and Deferred Revenue 37,571 49,865 82,443 103,810
Current Liabilities 45,643 55,705 86,865 109,610
Deferred Rent and Other Liabilities 13,616 27,604 33,824 35,333
Total Liabilities 59,259 83,309 120,689 144,943
Equity 197,576 241,363 316,978 397,666
256,835 324,672 437,667 542,609
Data source: Panera Bread Company annual reports, 2003–06.
Exhibit 3 - 2007 Forecast
Exhibit 1
PANERA BREAD COMPANY
2007 Operating Forecast(a)
(in thousands of dollars)
Number of Bakery-Cafes(b) 1,230
Revenue 1,050,000
Costs of Goods Sold
Bakery Café 738,000
Dough Sold to Franchisees 86,000
Depreciation 60,000
General and Administrative (c) 78,000
962,000
Operating Profit (EBIT) 88,000
Interest Expense 150
Pretax Profit 87,850
Tax 31,500
Net Income 56,350
Current Assets 150,000
Property, Plant, and Equipment 430,000
Goodwill and Other Assets 110,000
Total Assets 690,000
Current Liabilities 130,000
Deferred Rent and Other Liabilities 45,000
Total Liabilities 175,000
(a) Case writer estimate based on history and third-quarter results.
(b) Including both company-owned and franchised bakery cafés
(c) Includes pre-opening expenses and other expenses
Exhibit 4 - Stock Price
Panera Stock Price and Volume
Panera Stock Price Volume
6/1/06 65.53 277.1
6/2/06 65.95 358.8
6/5/06 64.62 432.6
6/6/06 64.62 745.8
6/7/06 62.47 1373.1
6/8/06 62.62 794.2
6/9/06 63.04 549
6/12/06 63.18 714.9
6/13/06 62.14 584.1
6/14/06 61.7 427.5
6/15/06 63.83 428.8
6/16/06 63.99 264.9
6/19/06 63.41 555.2
6/20/06 63.42 192.4
6/21/06 64.29 369.2
6/22/06 66.57 1245.8
6/23/06 66.73 396.9
6/26/06 67.5 491.9
6/27/06 67.03 509.5
6/28/06 65.58 748.5
6/29/06 66.87 382.8
6/30/06 67.24 351.7
7/3/06 66.94 86.2
7/4/06 66.94 0
7/5/06 66.37 328.3
7/6/06 65.5 417.9
7/7/06 64.15 359.6
7/10/06 64.83 312.2
7/11/06 64.44 529.1
7/12/06 63.83 476.9
7/13/06 61.25 938.2
7/14/06 62.1 924.9
7/17/06 60.71 1229.8
7/18/06 59.41 861.3
7/19/06 60.01 729.7
7/20/06 58.25 1124.5
7/21/06 57.69 770.5
7/24/06 59.56 906
7/25/06 59.27 754.8
7/26/06 51.93 6267.6
7/27/06 51.53 1469
7/28/06 52.59 1053.8
7/31/06 52.31 660.6
8/1/06 51.45 630.9
8/2/06 51.54 684.5
8/3/06 51.56 673.5
8/4/06 51.5 659.8
8/7/06 50.61 465.2
8/8/06 50.1 467
8/9/06 46.85 1755.4
8/10/06 48.08 1258.8
8/11/06 47.95 426.1
8/14/06 48.26 413.2
8/15/06 49.81 962.2
8/16/06 51.96 890.7
8/17/06 53.46 916.1
8/18/06 52.4 641.8
8/21/06 51.39 572.7
8/22/06 51.62 532.9
8/23/06 51.15 531.5
8/24/06 50.12 856.1
8/25/06 49.16 578.7
8/28/06 50.29 701
8/29/06 51.9 862.2
8/30/06 53.6 901.5
8/31/06 51.9 1038.7
9/1/06 52.88 491.3
9/4/06 52.88 0
9/5/06 54.75 1403.2
9/6/06 52.03 1591.5
9/7/06 51.52 1200.3
9/8/06 52.72 573.6
9/11/06 53.35 748.2
9/12/06 57.67 2127.9
9/13/06 56.89 857.3
9/14/06 57.46 690.3
9/15/06 58.9 724
9/18/06 58.22 926.8
9/19/06 58.09 651.8
9/20/06 60.6 946
9/21/06 60.08 887
9/22/06 59.03 633.9
9/25/06 60.11 757.9
9/26/06 60.11 504
9/27/06 59.57 508.9
9/28/06 59.1 655.7
9/29/06 58.25 407.7
10/2/06 58.17 642.5
10/3/06 58.35 774.9
10/4/06 64.75 3400.1
10/5/06 65.68 1166
10/6/06 64.41 730.9
10/9/06 66.02 595.9
10/10/06 65.19 941.8
10/11/06 64.22 813.9
10/12/06 67.2 1398.8
10/13/06 66.8 849.3
10/16/06 67.03 769
10/17/06 66.47 571.3
10/18/06 66.9 651.1
10/19/06 65.58 725.5
10/20/06 64.79 620
10/23/06 66.01 801.8
10/24/06 68.7 1196
10/25/06 64.41 4101.2
10/26/06 64.33 874.8
10/27/06 62.03 1089.2
10/30/06 61.98 1411.6
10/31/06 61.8 923.5
11/1/06 61.27 1157.2
11/2/06 60.66 974.1
11/3/06 59.15 1138.8
11/6/06 60.83 813.7
11/7/06 60.64 435.4
11/8/06 61.47 584.9
11/9/06 59.99 529
11/10/06 60.47 499.4
11/13/06 59.52 758.6
11/14/06 60.58 581.3
11/15/06 61.97 649.2
11/16/06 61.82 508.5
11/17/06 61.58 576.1
11/20/06 61.26 453.1
11/21/06 60.25 1248
11/22/06 60.87 568.3
11/23/06 60.87 0
11/24/06 60.97 115.9
11/27/06 59 661.7
11/28/06 58.08 968.6
11/29/06 57.6 1158.9
11/30/06 57.45 685.2
12/1/06 56.9 1330.7
12/4/06 58.68 632.9
12/5/06 58.79 786
12/6/06 56.94 3162
12/7/06 56.7 1556.3
12/8/06 56.89 1074.5
12/11/06 56.74 689
12/12/06 55.63 870
12/13/06 55.7 777.1
12/14/06 55.68 487.4
12/15/06 55.97 682
12/18/06 55.9 518.6
12/19/06 55.52 505.9
12/20/06 56.08 452.9
12/21/06 55.77 602.9
12/22/06 55.82 272.7
12/25/06 55.82 0
12/26/06 55.47 370.7
12/27/06 56.1 365.2
12/28/06 56.47 682.4
12/29/06 55.91 429.4
1/1/07 55.91 0
1/2/07 55.91 0
1/3/07 56.01 842.6
1/4/07 56.75 847.9
1/5/07 55.95 658.2
1/8/07 56.15 554.8
1/9/07 57.27 818.5
1/10/07 56.79 585.9
1/11/07 58.4 732.9
1/12/07 57.92 567.5
1/15/07 57.92 0