1. Professor Matt Wieland
Financial Statement Data:
Firm: Panera Bread Company
Analyst: FSA 2013
PANERA: CONSOLIDATED STATEMENTS OF EARNINGS: 2007 - 2011 Common-Sized by Sales
(Thousands) 2007 2008 2009 2010 2011 2007 2008
Revenues:
Bakery-cafe sales, net $ 894,902 $ 1,106,295 $ 1,153,255 $ 1,321,162 $ 1,592,951 0.84 0.85
Franchise royalties and fees 67,188 74,800 78,367 86,195 92,793 0.06 0.06
Fresh dough and other product sales to franchisees 104,601 117,758 121,872 135,132 136,288 0.10 0.09
Total revenues 1,066,691 1,298,853 1,353,494 1,542,489 1,822,032 1.00 1.00
Costs and expenses:
Bakery-cafe expenses:
Cost of food and paper products 271,442 332,697 337,599 374,816 470,398 0.36 0.36
Labor 286,238 352,462 370,595 419,140 484,014 0.38 0.38
Occupancy 70,398 90,390 95,996 100,970 115,290 0.09 0.10
Other operating expenses 121,325 147,033 155,396 177,059 216,237 0.16 0.16
Total bakery-cafe expenses 749,403 922,582 959,586 1,071,985 1,285,939 1.00 1.00
92,852 108,573 100,229 110,986 116,267 0.09 0.08
Depreciation and amortization 57,903 67,225 67,162 68,673 79,899 0.05 0.05
General and administrative expenses 68,966 84,393 83,169 101,494 113,083 0.06 0.06
Pre-opening expenses 8,289 3,374 2,451 4,282 6,585 0.01 0.00
Total costs and expenses 977,413 1,186,147 1,212,597 1,357,420 1,601,773 0.92 0.91
Operating profit 89,278 112,706 140,897 185,069 220,259 0.08 0.09
Interest expense 483 1,606 700 675 822 0.00 0.00
Other expense (income), net 333 883 273 4,232 (466) 0.00 0.00
Income before income taxes 88,462 110,217 139,924 180,162 219,903 0.08 0.08
Income taxes 31,434 41,272 53,073 68,563 83,951 0.03 0.03
Net income 57,028 68,945 86,851 111,599 135,952
Fresh dough and other product cost of sales to
franchisees
2. (428) 1,509 801 (267) - (0.00) 0.00
Net income attributable to Panera Bread Company 57,456 67,436 86,050 111,866 135,952 0.05 0.05
Less: net (loss) income attributable to noncontrolling
interest
3. Panera: CONSOLIDATED BALANCE SHEETS: 2007 - 2011
(Thousands)
25-Dec 30-Dec 29-Dec
ASSETS 2007 2008 2009 2010 2011 2007 2008
Current assets:
Cash and cash equivalents $68,242 $74,710 $246,400 $229,299 $222,640 0.10 0.11
Trade accounts receivable, net 25,152 15,198 17,317 20,378 30,700 0.04 0.02
Other accounts receivable 11,640 9,944 11,176 17,962 24,009 0.02 0.01
Inventories 11,394 11,959 12,295 14,345 17,016 0.02 0.02
Prepaid expenses 5,299 14,265 16,211 23,905 31,228 0.01 0.02
Deferred income taxes 7,199 9,937 18,685 24,796 27,526 0.01 0.01
Short-term investments in government securities 23,198 2,400 - - - 0.03 0.00
Total current assets 152,124 138,413 322,084 330,685 353,119 0.22 0.21
Property and equipment, net 429,992 417,006 403,784 444,094 492,022 0.62 0.62
Other assets: 0.00 0.00
Goodwill 87,092 87,334 87,481 94,442 108,071 0.12 0.13
Other intangible assets, net 21,827 20,475 19,195 48,402 67,269 0.03 0.03
Deposits and other 7,717 8,963 4,621 6,958 6,841 0.01 0.01
- 1,726 - - - 0.00 0.00
Total other assets 116,636 118,498 111,297 149,802 182,181 0.17 0.18
TOTAL ASSETS 698,752 673,917 837,165 924,581 1,027,322 1.00 1.00
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Accounts payable $6,326 $4,036 $6,417 $7,346 $15,884 0.01 0.01
Accrued expenses 121,440 109,978 135,842 204,170 224,450 0.17 0.16
Deferred revenue - - - - - 0.00 0.00
Total current liabilities 127,766 114,014 142,259 211,516 240,334 0.18 0.17
Deferred rent 33,569 39,780 43,371 47,974 54,055 0.05 0.06
Deferred income taxes 75,000 - 28,813 30,264 34,345 0.11 0.00
Other long-term liabilities 14,238 21,437 25,686 39,219 45,512 0.02 0.03
Total liabilities 250,573 175,231 240,129 328,973 374,246 0.36 0.26
0.00 0.00
Investments in government securities and long-term
investments
4. Minority interest 2,015 3,524 - - - 0.00 0.01
Stockholders’ equity:
Common stock, $.0001 par value, Class A 3 3 3 3 3 0.00 0.00
Common stock, $.0001 par value, Class B - - - - - 0 0
Treasury stock, carried at cost (1,188) (2,204) (3,928) (78,990) (175,595) (0.00) (0.00)
Additional paid-in capital 168,386 151,358 168,288 130,005 150,093 0.24 0.22
Accumulated other comprehensive income (loss) - (394) 224 275 308 0.00 (0.00)
Retained earnings 278,963 346,399 432,449 544,315 680,267 0.40 0.51
Total shareholders equity 446,164 495,162 597,036 595,608 655,076 0.64 0.73
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $698,752 $673,917 $837,165 $924,581 $1,029,322 1.00 1.00
5. PANERA: CONSOLIDATED STATEMENTS OF CASH FLOWS 2007 - 2011
(Thousands)
2007 2008 2009 2010 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 57,028 $ 68,945 $ 86,851 $ 111,599 $ 135,952
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 57,903 67,225 67,162 68,673 79,899
(Gain) Loss from short-term investments 967 1,910 (1,339) - -
Stock-based compensation expense 7,255 7,954 8,661 9,558 9,861
Tax benefit from exercise of stock options (3,731) (3,376) (5,095) (3,603) (4,994)
Deferred income taxes (7,276) (4,107) 22,950 (4,660) 1,351
Other 725 228 2,799 1,114 2,423
Changes in operating assets and liabilities, excluding the effect of acquisitions:
Trade and other accounts receivable, net (5,549) 11,650 (3,554) (13,180) (16,369)
Inventories (1,798) (565) (336) (1,540) (2,183)
Prepaid expenses 6,884 (8,966) (2,224) (7,694) (7,323)
Deposits and Other 231 1,042 100 (2,337) 117
Accounts payable (815) (2,290) 2,381 929 8,538
Accrued expenses 32,398 5,450 28,901 61,891 19,630
Deferred revenue - - - - -
Deferred rent 5,885 6,211 3,591 4,603 6,081
Other long-term liabilities 4,138 6,013 4,056 12,281 3,906
Net cash provided by operating activities 154,245 157,324 214,904 237,634 236,889
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment (124,133) (63,163) (54,684) (82,226) (107,932)
Acquisitions, net of cash acquired (71,039) (2,704) - (52,177) (44,377)
Proceeds from sale of assets (in 2010, bakery cafes) 1,844 - - 2,204 115
Investment maturities proceeds 22,361 17,162 5,465 - -
Short-term investments transferred from cash and cash (26,526) - - - -
Purchase of investments - - - - -
Net cash used in investing activities (170,967) (48,705) (49,219) (132,199) (152,194)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments under credit facility 75,000 (75,000) - - -
Repurchase of common stock (27,487) (48,893) (3,453) (153,492) (96,605)
Exercise of employee stock options 6,576 17,621 22,818 25,551 3,193
6. Tax benefit from exercise of stock options 3,731 3,376 5,095 3,603 4,994
1,782 1,898 1,626 1,802 2,040
Purchase of noncontrolling interest - - (20,081) - -
Payment of deferred acquisition holdback (4,976)
Capitalized debt issuance costs (209) (1,153) - - -
Net cash (used in) provided by financing activities 59,393 (102,151) 6,005 (122,536) (91,354)
Net (decrease) increase in cash and cash equivalents 42,671 6,468 171,690 (17,101) (6,659)
CASH AND CASH EQUIVALENTS:
Beginning of period 52,097 68,242 74,710 246,400 $229,299
End of the period $ 68,242 $ 74,710 $ 246,400 $ 229,299 $222,640
Proceeds from issuance of common stock under
employee benefit plans
13. Professor Matt Wieland
Financial Statement Data:
Firm: Starbucks Corporation
Analyst: FSA 2013
Starbucks: CONSOLIDATED STATEMENTS OF EARNINGS: 2003 - 2012
(Millions) 2008 2009 2010 2011 2012
Net revenues:
Company-operated stores $8,771.90 $8,180.10 $8,963.50 $9,632.40 $10,534.50
Licensed stores 1,171.60 795.00 875.20 1,007.50 1,210.30
CPG, foodservice and other 439.50 799.50 868.70 1,060.50 1,554.70
Total net revenues $10,383.00 $9,774.60 $10,707.40 11,700.40 13,299.50
Cost of sales including occupancy costs 4,645.30 4,324.90 4,458.60 4,949.30 5,813.30
Store operating expenses 3,745.10 3,425.10 3,551.40 3,665.10 3,918.10
Other operating expenses 330.10 264.40 293.20 402.00 429.90
Depreciation and amortization expenses 549.30 534.70 510.40 523.30 550.30
General and administrative expenses 456.00 453.00 569.50 636.10 801.20
Restructuring Charges 266.90 332.40 53.00 0.00 0.00
Total operating expenses 9,992.70 9,334.50 9,436.10 10,175.80 11,512.80
Gain on sale of properties 30.20
Income from equity investees 113.60 121.90 148.10 173.70 210.70
Operating income 503.90 562.00 1,419.40 1,728.50 1,997.40
Interest income and other, net 5.20 37.00 50.30 115.90 94.40
Interest expense (53.40) (39.10) (32.70) (33.30) (32.70)
Earnings before income taxes 455.70 559.90 1,437.00 1,811.10 2,059.10
Income taxes 144.00 168.40 488.70 563.10 674.40
Earnings before cumulative effect of change in accounting principle 311.70 391.50 948.30 1,248.00 1,384.70
Cumulative effect of accounting change for FIN 47, net of taxes
Net earnings including noncontrolling interests $311.70 $391.50 $948.30 $1,248.00 $1,384.70
Net earnings (loss) attributable to noncontrolling interests -3.8 0.7 2.7 2.3 0.9
Net earnings attributable to Starbucks $315.50 $390.80 $945.60 $1,245.70 $1,383.80
14. Starbucks: CONSOLIDATED BALANCE SHEETS: 2003 - 2012
(Millions)
ASSETS 2008 2009 2010 2011 2012
Current assets:
Cash and cash equivalents $269.80 $599.80 $1,164.00 $1,148.10 $1,188.60
Short-term investments - available-for-sale securities 3.00 21.50 236.50 855.00 848.40
Short-term investments - trading securities 49.50 44.80 49.20 47.60
Accounts receivable, net 329.50 271.00 302.70 386.50 485.90
Inventories 692.80 664.90 543.30 965.80 1,241.50
Prepaid expenses and other current assets 169.20 147.20 156.50 161.50 196.50
Deferred income taxes, net 234.20 286.60 304.20 230.40 238.70
Total current assets $1,748.00 $2,035.80 $2,756.40 $3,794.90 $4,199.60
Long-term investments - available-for-sale securities 71.40 71.20 191.80 107.00 116.00
Equity and cost investments 302.60 352.30 341.50 372.30 459.90
Property, plant and equipment, net 2,956.40 2,536.40 2,416.50 2,355.00 2,658.90
Other assets 261.10 253.80 346.50 297.70 385.70
Other intangible assets 66.60 68.20 70.80 111.90
Goodwill 266.50 259.10 262.40 321.60 399.10
TOTAL ASSETS $5,672.60 $5,576.80 $6,385.90 $7,360.40 $8,219.20
LIABILITIES AND SHAREHOLDERS EQUITY 303.90
Current liabilities:
Accounts payable 324.90 267.10 282.60 540.00 398.10
Accrued compensation and related costs 253.60 307.50 400.00 364.40 381.60
Accrued occupancy costs 136.10 188.10 173.20 148.30 126.90
Accrued taxes 76.10 127.80 100.20 109.20 138.30
Insurance reserves 152.50 154.30 146.20 145.60 167.70
Other accrued liabilities 164.40 147.50 262.80 319.00 487.00
Deferred revenue 368.40 388.70 414.10 449.30 510.20
Current portion of long-term debt 0.70 - - - -
Commercial paper and short-term borrowings 713.00 - - - -
Total current liabilities $1,476.70 $1,581.00 $1,779.10 $2,075.80 $2,209.80
Long-term debt 549.60 549.30 549.40 549.50 549.60
15. Other long-term liabilities 442.40 389.60 375.10 347.80 345.30
Deferred income taxes, net
Total liabilities $2,468.70 $2,519.90 $2,703.60 $2,973.10 $3,104.70
Shareholders equity:
Common stock 0.70 0.70 0.70 0.70 0.70
Additional paid-in capital - 147.00 106.20 1.10
Other additional paid-in-capital 39.40 39.40 39.40 39.40 39.40
Retained earnings 2,402.40 2,793.20 3,471.20 4,297.40 5,046.20
Accumulated other comprehensive income 48.40 65.40 57.20 46.30 22.70
Total shareholders' equity 2,490.90 3,045.70 3,674.70 4,384.90 5,109.00
Noncontrolling interests - 11.20 7.60 2.40 5.50
Total equity $2,490.90 $3,056.90 $3,682.30 $4,387.30 $5,114.50
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $4,959.60 $5,576.80 $6,385.90 $7,360.40 $8,219.20
16. STARBUCKS: CONSOLIDATED STATEMENTS OF CASH FLOWS 2005 - 2012
(Millions) 2008 2009 2010 2011 2012
OPERATING ACTIVITIES:
Net earnings $311.70 $391.50 $948.30 1248 1384.7
Adjustments to reconcile net earnings to net cash provided by operating activities:
Cumulative effect of accounting change for FIN 47, net of taxes - - - - -
Depreciation and amortization 604.50 563.30 540.80 550.00 580.60
Gain on sale of properties - - - (30.22)
Provision for impairments and asset disposals 325.00 224.40 67.70 36.20
Deferred income taxes, net (117.10) (69.60) (42.00) 106.20 61.10
Equity in income of investees (61.30) (78.40) (108.60) (118.50) (49.30)
Distributions of income from equity investees 52.60 53.00 91.40 85.60
Gain resulting from acquisition of joint ventures - - (23.10) (55.20)
Stock-based compensation 75.00 83.20 113.60 145.20 153.60
Excess tax benefit from exercise of stock (14.70) (15.90) (36.90) (103.90)
options - - - -
Other (0.10) 5.40 7.80 (2.90) 23.60
Cash provided/(used) by changes in operating assets and liabilities:
Accounts receivable - 59.10 (33.40) (88.70) (90.30)
Inventories (0.60) 28.50 123.20 (422.30) (273.30)
Accounts payable (63.90) (53.00) (3.60) 227.50 (105.20)
Accrued taxes 7.30 59.20 0.60 104.00
Deferred revenue 72.40 16.30 24.20 35.80 60.80
Other operating assets (11.20) 61.40 17.30 (22.50) (19.70)
Other operating liabilities 71.50 60.60 17.60 (81.90) 23.70
Net cash provided by operating activities $1,251.10 $1,389.00 $1,704.90 $1,612.38 $1,750.30
INVESTING ACTIVITIES:
Purchase of available-for-sale securities (71.80) (129.20) (549.00) (966.00) (1748.60)
Maturities and calls of available-for-sale securities 20.00 111.00 209.90 430.00 1796.40
Sales of available-for-sale securities 75.90 5.00 1.10 0.00
Acquisitions, net of cash acquired (74.20) 0.00 (12.00) (55.80) (129.10)
Net (purchases)/sales of equity, other investments and other assets (52.00) (4.80) 1.20 (13.20) (41.80)
Additions to property, plant and equipment (984.50) (445.60) (440.70) (531.90) (856.20)
Proceeds from sale of prroperty, plant and equipment 42.50 0.00 117.40 5.30
17. Net cash used by investing activities ($1,086.60) ($421.10) ($789.50) ($1,019.50) ($974.00)
FINANCING ACTIVITIES:
Proceeds from issuance of commercial paper 65770.80 20965.40 - -
Repayments of commercial paper (66068.00) (21378.50) - -
Proceeds from short-term borrowings 528.20 1338.00 - 30.80 (30.80)
Repayments of short-term borrowings (228.80) (1638.00) - -
Purchase of noncontrolling interest - - (45.80) (27.50)
Proceeds from issuance of common stock 112.30 57.30 127.90 235.40 236.60
Excess tax benefit from exercise of stock options 14.70 15.90 36.90 103.90 169.80
Principal payments on long-term debt (0.60) (0.70) (6.60) (4.30)
Cash dividends paid - - (171.00) (389.50) (513.00)
Repurchase of common stock (311.40) - (285.60) (555.90) (549.10)
Proceeds from issuance of long-term debt - - - -
Other (1.70) (1.60) (1.80) (0.90) (59.00)
Net cash used by financing activities (185) (642) (346) ($608.00) ($745.50)
Effect of exchange rate changes on cash and cash equivalents 0.90 4.30 (5.20) (0.80) 9.70
Net increase/(decrease) in cash and cash equivalents ($19.10) $330.00 $564.20 ($15.92) $40.50
CASH AND CASH EQUIVALENTS:
Beginning of period #REF! 269.80 599.80 1164.00 1148.10
End of the period 269.80 599.80 1164.00 1148.10 1188.60
#REF! 330 564.2 -15.9 40.50
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest $52.70 $39.80 $32.00 $34.40 $34.40
Income taxes $259.50 $162.00 $527.00 $350.10 $350.10