Question
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
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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. Paneras 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:
Company-Operated Cafes Franchised Cafes Fresh Dough Revenues $2,434 $155 $408 Operating income 398 150 28 Invested assets 943 18 87
a. Determine the profit margin for each segment. Round to one decimal place.
Profit margin Company-Operated % Franchised % Fresh Dough %
b. Determine the investment turnover for each segment. Round to two decimal places.
Investment Turnover 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 %
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. Paneras 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:
| Company-Operated Cafes | Franchised Cafes | Fresh Dough | ||||
| Revenues | $2,434 | $155 | $408 | |||
| Operating income | 398 | 150 | 28 | |||
| Invested assets | 943 | 18 | 87 | |||
a. Determine the profit margin for each segment. Round to one decimal place.
| Profit margin | ||
| Company-Operated | % | |
| Franchised | % | |
| Fresh Dough | % | |
b. Determine the investment turnover for each segment. Round to two decimal places.
| Investment Turnover | ||
| 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 | % | |
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Cost Accounting A Managerial Emphasis International
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
11th Edition
8120323548, 978-8120323544
