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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

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
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.

Check My Work

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

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.

	Company-Operated Cafes	Franchised Cafes	Fresh Dough
Revenues	$2,434		$155	$408
Operating income	398		150	28
Invested assets	943		18	87

	Profit margin
Company-Operated	fill in the blank 1%
Franchised	fill in the blank 2%
Fresh Dough	fill in the blank 3%

	Investment Turnover
Company-Operated	fill in the blank 4
Franchised	fill in the blank 5
Fresh Dough	fill in the blank 6

	Return on Investment
Company-Operated	fill in the blank 7%
Franchised	fill in the blank 8%
Fresh Dough	fill in the blank 9%