Panera Bread
- How have and will the macroeconomic affect this company? if so, how?
Macroeconomic has affected the company negatively in the sense that the cost of operation has risen thus making the company to realize less profits. The company’s total revenue grew by 1.6%, thus it needs to be able to manage its costs very effectively thus being able to gain high operating margins. Food inflation is one of the major problems that the country is facing, and needs to control it in order to be able to gain profits (Adam, n.p). Food sales increased by 0.66% to 29.86%, which was mainly caused by dairy and butter. This consequently affected restaurants, and they therefore had to increase their menu prices in order to be able to cover on the increase of the prices. Labor costs also increased by 1.15% to 31.11%, thus making the profit margins to drop hence making hard for the company to be able to realize huge profits.
- What is this company (Panera Bread)'s fundamental strategy and are they maximizing shareholder value?
The fundamental strategy of Panera bread is allowing the customers to decide whatever they want. Indulging the customers to participate in helping the company to come up with the product that they want, helps in building the relationship between the company and the customers (Adam, n.p). This therefore allows the company to be able to prepare what the customers want, thus being able to stick to the company. Moreover, the company also maximizes shareholder values through providing foods which are of a high quality thus enabling the company to receive good reviews from the customers thus raising the shareholder value in the company.
Work Cited
Adam, J. Panera Bread’s EPS Declined, But Revenue Increased in 4Q14: Investing in Panera Bread? Key Takeaways its 4Q14 Earnings. 2015. Print.
