FDD Talk 2013: Average Gross Sales, Certain Expenses, and Cash Flow of Einstein Bros. Bagels Restaurants (2013 FDD)
Highlights of Einstein Bros. Bagels’ Item 19 Financial Performance Representations (2013 FDD)
- The sales and expense information that follows has been compiled using unaudited financial data from franchised and company-owned Einstein Bros. Bagels Restaurants that were open for the entire year during the company’s last fiscal year, which started on January 4, 2012 and ended on January 1, 2013.
- Einstein Bros. Bagels open for less than the full year were not included. There were 39 company-owned Einstein Bros. Bagels Restaurants that were not included because they were not open the entire fiscal year.
Explanatory Notes for Table 1 – Sales Distribution
- Table 1 below organizes the information based on the sales volume of the 21 franchised and 395 company-owned Einstein Bros. Bagels Restaurants for the period that started on January 4, 2012 and ended on January 1, 2013.
- The number of company-owned Restaurants that achieved or surpassed the Average Gross Sales figure in Table 1 was 164 out of 395 (42%).
- The number of franchised Restaurants that achieved or surpassed the Average Gross Sales figure in Table 1 was 12 out of 21 (57%).
- Einstein Bros. Bagels has further broken down the gross sales volumes for company-owned and franchised Restaurants – both with and without a drive-thru.
Explanatory Notes for Table 2 – Cost Factors
- Table 2 below organizes the information based on the cost factors incurred at the 356 company-owned Einstein Bros. Bagels Restaurants for the 52-week period from January 4, 2012 to January 1, 2013 (which represents 100% of those restaurants that were open for all 52 weeks of the company’s last fiscal year). (Ambrosio’s note: No explanation was given for the difference between the number of company-owned Restaurants included in Table 1 and Table 2.)
- These cost factors are based on the company’s experience operating company-owned restaurants and should not be considered as the actual or potential costs that you will incur.
- Because these are the results of company-owned restaurants, these figures do not include costs that a franchisee will incur, such as royalties and the amortized portion of the initial franchise fee (if it was financed).
- Gross revenue includes all sales of food, beverages, and promotional items, and the dollar amount of coupons, employee discounts, and other promotional discounts, but excludes all sales and service taxes.
- Discounts consist of the dollar amount of coupons, employee discounts, and other promotional discounts.
- Gross sales includes all sales of food, beverages, and promotional items, but excludes all sales and service taxes, and the dollar amount of coupons, employee discounts, and other promotional discounts.
- Total cost of products sold includes the cost of food, paper, and other products.
- Labor includes hourly and salaried employee compensation, bonuses, taxes, and benefits.
- Other operating expenses include utilities, ordinary operating maintenance and repairs, unplanned maintenance and repairs, supplies, and other miscellaneous operating expenses.
- Non-operating expenses include rent and other occupancy expenses, insurance, and other miscellaneous expenses, but exclude depreciation and marketing.
- Store Cash Flow = Profit After Operating Expenses less Non-Operating Expenses (which excludes depreciation), which is not a measure in accordance with generally accepted accounting principles.
- You will incur other substantial costs in the operation of your Restaurant that are not included in this discussion, including, among others, local marketing expenses, mortgage or other debt/financing costs, computer upgrades, renovations, improvements, and major repair/maintenance expenses, legal and professional fees, income and other non-real estate taxes, and various other expenses.
Table 1 – Sales Distribution
Annual Gross Sales Levels During the 52-Week Period from January 4, 2012 to January 1, 2013
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