Panera Bread 2013 Annual Report Download - page 36

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28
The following table summarizes labor expense for the periods indicated (dollars in thousands):
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
% Change
in 2013
% Change
in 2012
Labor expense . . . . . . . . . . . . . . . . . . . . . . . . . $ 625,457 $ 559,446 $ 484,014 11.8% 15.6%
As a percent of bakery-cafe sales, net. . . . . . . 29.7% 29.8% 30.4%
The decrease in labor expense in fiscal 2013 as a percentage of net bakery-cafe sales was primarily a result of lower incentive
compensation.
The decrease in labor expense in fiscal 2012 as a percentage of net bakery-cafe sales was primarily a result of improved leverage
from higher comparable net bakery-cafe sales and wage discipline.
The following table summarizes occupancy cost for the periods indicated (dollars in thousands):
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
% Change
in 2013
% Change
in 2012
Occupancy cost . . . . . . . . . . . . . . . . . . . . . . . . $ 148,816 $ 130,793 $ 115,290 13.8% 13.4%
As a percent of bakery-cafe sales, net. . . . . . . 7.1% 7.0% 7.2%
The increase in occupancy cost in fiscal 2013 as a percentage of net bakery-cafe sales was primarily a result of modestly higher
average occupancy costs in new bakery-cafes and higher real estate taxes.
The decrease in occupancy cost in fiscal 2012 as a percentage of net bakery-cafe sales was primarily a result of improved leverage
from higher comparable net bakery-cafe sales.
The following table summarizes other operating expenses for the periods indicated (dollars in thousands):
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
% Change
in 2013
% Change
in 2012
Other operating expenses . . . . . . . . . . . . . . . . $ 295,539 $ 256,029 $ 216,237 15.4% 18.4%
As a percent of bakery-cafe sales, net. . . . . . . 14.0% 13.6% 13.6%
The increase in other operating expenses in fiscal 2013 as a percentage of net bakery-cafe sales was primarily a result of increased
marketing expense and certain other controllable expenses, including increased repair and maintenance expenses related to
operational initiatives.
Other operating expenses remained consistent as a percentage of net bakery-cafe sales from fiscal 2011 to fiscal 2012 primarily
due to increased marketing expense, principally offset by leverage from higher comparable net bakery-cafe sales.
The following table summarizes fresh dough and other product cost of sales to franchisees for the periods indicated (dollars in
thousands):
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
% Change
in 2013
% Change
in 2012
Fresh dough and other product cost of sales
to franchisees. . . . . . . . . . . . . . . . . . . . . . . . . . $ 142,160 $ 131,006 $ 116,267 8.5% 12.7%
As a percent of fresh dough and other
product sales to franchisees. . . . . . . . . . . . . . . 87.0% 88.1% 85.3%
The decrease in the fresh dough and other product cost of sales to franchisees in fiscal 2013 as a percentage of fresh dough and
other product sales to franchisees was primarily the result of the year-over-year decrease in ingredient costs and improved leverage
from new bakery-cafes and higher comparable net bakery-cafe sales.