1. Overview Case considerations Key topics
8/25/2019
Panera Bread
Overview
Case considerations
Key topics
8/25/2019
Senior Seminar in Finance

2. Senior Seminar in Finance
8/25/2019
Overview
Time of case: end of 2007
Panera Bread must forecast it’s business and determine how to finance future growth.
Spreadsheet file available: Panera.xls
NOTE—be sure to refer to MEMO in spreadsheet
8/25/2019
Senior Seminar in Finance

3. Senior Seminar in Finance
Case considerations
Complete financing forecast for 2007 and then project financials through 2012—use the “worksheet” in the spreadsheet file as the forecast template.
To sure to include forecast assumptions with model.
Be sure to compute key ratios, such as debt and DuPont ratios.
8/25/2019
Senior Seminar in Finance

4. Senior Seminar in Finance
Case considerations
How does revenue growth affect profit margin and debt?
How do food costs affect profit and debt?
8/25/2019
Senior Seminar in Finance

5. Senior Seminar in Finance
Case considerations
Can Panera manage the resulting debt indicated in forecast?
Compute various debt measures and compare to comparable companies
8/25/2019
Senior Seminar in Finance

6. Senior Seminar in Finance
Case considerations
For case, assume:
NOTE: debt is the “plug”—balances the balance sheet and indicates external funds needed
Share repurchase ($75M) occurs in 2008
Interest expense 6% of debt
Sales growth 25% for ; 5% for
8/25/2019
Senior Seminar in Finance

7. Senior Seminar in Finance
Key topics
Forecasting and sensitivity analysis
Financing strategies; managing growth
8/25/2019
Senior Seminar in Finance