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: 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 fill in the blank 1% Franchised fill in the blank 2% Fresh Dough fill in the blank 3% b. Determine the investment turnover for each segment. Round to two decimal places. Investment Turnover Company-Operated fill in the blank 4 Franchised fill in the blank 5 Fresh Dough fill in the blank 6 c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place. Return on Investment Company-Operated fill in the blank 7% Franchised fill in the blank 8% Fresh Dough fill in the blank 9% d. Which segment has the highest profit margin, investment turnover, and return on investment? 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. 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. 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. 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? Company-owned cafes help in establishing brand reputation, testing new products and improving operating efficiencies. Company-owned cafes help in establishing brand reputation and increasing profit margins. Company owned cafes are more profitable than franchises. Company-owned cafes are low on investments and give high profits.
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: 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 fill in the blank 1% Franchised fill in the blank 2% Fresh Dough fill in the blank 3% b. Determine the investment turnover for each segment. Round to two decimal places. Investment Turnover Company-Operated fill in the blank 4 Franchised fill in the blank 5 Fresh Dough fill in the blank 6 c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place. Return on Investment Company-Operated fill in the blank 7% Franchised fill in the blank 8% Fresh Dough fill in the blank 9% d. Which segment has the highest profit margin, investment turnover, and return on investment? 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. 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. 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. 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? Company-owned cafes help in establishing brand reputation, testing new products and improving operating efficiencies. Company-owned cafes help in establishing brand reputation and increasing profit margins. Company owned cafes are more profitable than franchises. Company-owned cafes are low on investments and give high profits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 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:
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 fill in the blank 1% Franchised fill in the blank 2% Fresh Dough fill in the blank 3% b. Determine the investment turnover for each segment. Round to two decimal places.
Investment
TurnoverCompany-Operated fill in the blank 4 Franchised fill in the blank 5 Fresh Dough fill in the blank 6 c. Use the DuPont formula to determine the
return on investment for each segment. Round to one decimal place.Return on
InvestmentCompany-Operated fill in the blank 7% Franchised fill in the blank 8% Fresh Dough fill in the blank 9% d. Which segment has the highest profit margin, investment turnover, and return on investment?
- 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.
- 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.
- 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.
- 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?
- Company-owned cafes help in establishing brand reputation, testing new products and improving operating efficiencies.
- Company-owned cafes help in establishing brand reputation and increasing profit margins.
- Company owned cafes are more profitable than franchises.
- Company-owned cafes are low on investments and give high profits.
Check My Work
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education