Panera Bread’s revenue segments
Panera Bread (PNRA) reported a year-over-year, or YoY, revenue growth of 1.6% from $661.7 million to $672.5 million. Chipotle Mexican Grill (CMG) also operates under the fast-casual restaurant format. It reported a YoY revenue growth of 27% to $1,069 million during 4Q14.
We’ll analyze each of the segments in more detail below.
The company earns revenue from three sources:
- Company-owned restaurants
- Franchised restaurants
- Fresh dough products
The company reported $593 million from company-operated restaurants. It grew 1.56% from $584 million in the same quarter last year. The revenue was primarily driven by new company-owned restaurants and franchise revenue.
Fresh dough products
Fresh dough products’ revenue declined -0.9% YoY to $45 million. The revenue was $45.4 million in the same quarter last year. The Fresh Dough segment consists of selling products to franchisees. These products include fresh dough, cream cheese, produce, and tuna.
For 4Q14, the franchise revenue was $33.7 million. It grew 7.36% from $31.4 million in the same quarter last year. Growth in franchise royalties boosted the franchise revenue.
Restaurant chains may earn revenue from various sources, like the sources we discussed above. The chains can also offer catering services—like Chipotle Mexican Grill (CMG). Chipotle is also part of the Consumer Discretionary Select Sector SPDR Fund (XLY). XLY also includes restaurant chains like McDonald’s (MCD), Starbucks (SBUX), and Yum! Brands (YUM). McDonald’s accounts for 4% of XLY.
Cost of operations
In the next part of this series, we’ll discuss the cost of operations. It includes the food, labor, and occupancy costs that are critical for the restaurant industry.