Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Weekly Gross Sales, COGS, and Labor Costs for Company-Owned Pie Five Pizza Co. Restaurants (2013 FDD)

by Franchise Chatter on March 26, 2014

in Franchise Earnings, Pizza Franchises



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Highlights of Pie Five Pizza Co.’s Item 19 Financial Performance Representations (2013 FDD)

  • The following chart includes historical information concerning the 7 company-owned Pie Five Pizza Co. Restaurants operating as of June 30, 2013. The chart includes sales data from June 24, 2012 to June 30, 2013 (or for a subset of this time as described below) for the 7 company-owned Restaurants.
  • Pie Five Pizza Co. Photo from southlakestyle.comWhile there were 10 company-owned Pie Five Pizza Co. Restaurants operating as of June 30, 2013, 2 Restaurants have been excluded from the chart since they operate in a non-traditional setting (e.g. colleges) and have materially different operating results from other Pie Five Pizza Co. Restaurants. And 1 Restaurant has been excluded from the chart since it relocated subsequent to year end.
  • The figures in the chart below relate only to sales and certain costs of sales and do not include all costs or operating expenses.
  • Open 53 Weeks. This is the average result for the 5 company-owned Restaurants that were open for the entire 53 weeks of the fiscal year.
  • Open Less Than 53 Weeks. This is the average result for the 2 company-owned Restaurants that were open for less than the entire 53 weeks of the fiscal year (37 weeks and 3 weeks, respectively).
  • Company-owned Restaurants include end cap and inline locations and vary in size from approximately 2,000 to 2,500 square feet, and also include a number of different seating layouts and seat counts.
  • All company-owned Restaurants at fiscal year end were located in Texas.
  • Average Weekly Gross Sales reported in each column is at the full retail price. This sales data includes sales of all food, beverages, and promotional items. This sales data does not include sales tax or discounts.
  • Variations in the sales levels of restaurants may occur due to location, the visibility of a site and exterior sign(s), the foot/vehicular traffic where the restaurant is located, the populations and income of the immediate market area, how well known the Pie Five brand is in the area, inflation, federal, state, and local government regulations, changes in menu, regional differences in products, and numerous other factors.
  • Average Weekly Discounts to Gross Sales reported in each column reflect new restaurant opening and promotional discount activity and bundled pricing. This data does not include sales tax.
  • Average Weekly Net Sales reported in each column are the net of Gross Sales less Discounts. This sales data does not include sales tax.
  • Cost of Goods is inclusive of food and paper costs, as a percentage of Average Weekly Gross Sales.
  • Hourly Labor Cost is inclusive of all non-salaried labor, as a percentage of Average Weekly Gross Sales. This cost does not include salaried management, payroll taxes or other benefits. Your Hourly Labor Cost could vary depending on prevailing wage rates in the area of the country in which your Restaurant is located.
  • The information presented is unaudited and was prepared using uniform accounting methods consistent with generally accepted accounting principles and on a basis consistent with those included in the franchisor’s affiliate’s annual audited consolidated financial statements. All company-owned Restaurants use the same accounting methods.
  • Some Restaurants have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.

Open 53 Weeks



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