Analyze Panera Bread Company Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States and Canada and serves over 9 million customers per week. Panera's operations are divided into the following segments: Company-Operated Bakery-Cafes Franchised Bakery-Cafes Fresh Dough and Other Products The Fresh Dough and Other Products segment supplies fresh dough, produce, tuna, and other products to the company-operated and franchised cafes. Recent data (in millions) for each of these segments are as follows: Revenues Operating income Invested assets Company-Operated Franchised Fresh Cafes Cafes Dough $2,434 $155 $408 398 150 28 943 18 87 a. Determine the profit margin for each segment. Round to one decimal place. Company-Operated Franchised Profit margin % % % Fresh Dough b. Determine the investment turnover for each segment. Round to two decimal places. Investment Turnover Company-Operated Company-Operated Franchised Fresh Dough c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place. Return on Investment Company-Operated Franchised Fresh Dough % % % d. Which segment has the highest profit margin, investment turnover, and return on investment? 1. The franchised bakery-cafes have the highest profit margin, investment turnover, and return on investment because Panera incurs no cost of goods sold or operating expense in generating this revenue. 2. The fresh dough and other products segment has the highest profit margin, investment turnover, and return on investment because Panera incurs no cost of goods sold or operating expense in generating this revenue. 3. The company-operated bakery-cafes have the highest profit margin, investment turnover, and return on investment because Panera incurs no cost of goods sold or operating expense in generating this revenue. 4. All three segments have relatively the same profit margin, investment turnover, and return on investment because the their operating costs are similar. e. If franchised cafes are more profitable, why would Panera operate company-owned cafes? 1. Company-owned cafes help in establishing brand reputation, testing new products and improving operating efficiencies. 2. Company-owned cafes help in establishing brand reputation and increasing profit margins. 3. Company owned cafes are more profitable than franchises. 4. Company-owned cafes are low on investments and give high profits.