Net income and net margins overview
Panera Bread (PNRA) reported a net income of $48.5 million. It declined 10.6%—compared to $54 million during the same quarter last year.
Net profit margins also declined from 8% to 7.2% over the same period. The decline was primarily due to an increase in operating expense by 1.4% to $595 million year-over-year, or YoY. This increased with labor and food costs, as we discussed earlier in this series.
For the quarter, the general and administrative costs were $35.9 million. They decreased 1.3% from $36.4 million—compared to the same quarter last year. Depreciation and amortization costs also increased by 9% from $30.6 million to $33.4 million. This squeezed the profit margins more.
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Interest and tax expense
Interest expenses declined slightly by $60 million to $438 million. The effective tax rate for the quarter was 34.3%. The tax rate declined—compared to 36.9% during the same quarter last year.
At the end of the third quarter, Panera Bread’s cash was $196 million. The fourth quarter generated $140 million in cash flow. The company had capital expenditures of $69 million. It also repurchased shares worth $25 million during the quarter.