How did the depreciation and amortization for Brueggers Bagels change from 2022 to 2024?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| al liabilities and shareholders' equity | $ | 1,448,750 | $ | 1,371,760 |
|---|
CARIBOU COFFEE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands)
| December 31, 2024 | December 26, 2023 | December 27, 2022 | |
|---|---|---|---|
| Coffeehouse and bagel bakery sales | $ 928,364 | $ 859,563 | $ 792,112 |
| Franchise royalties and fees | 29,393 | 26,126 | 23,426 |
| Franchise advertising sales | 5,277 | 4,347 | 4,017 |
| Franchise and commercial product sales | 98,930 | 161,441 | 150,136 |
| Net sales | 1,061,964 | 1,051,477 | 969,691 |
| Cost of goods sold | 226,684 | 216,401 | 203,878 |
| Labor | 272,016 | 248,045 | 240,207 |
| Occupancy | 91,836 | 85,519 | 83,686 |
| Other operating expenses | 144,214 | 132,419 | 113,309 |
| Total coffeehouse and bagel bakery expense | 734,750 | 682,384 | 641,080 |
| Franchise operations and other expenses | 3,276 | 3,406 | 2,307 |
| Ad fund expense franchise | 5,277 | 4,408 | 4,017 |
| Franchise and commercial product cost of goods sold | 74,289 | 126,434 | 116,077 |
| Depreciation and amortization | 45,304 | 40,071 | 40,926 |
| General and administrative expenses | 117,472 | 102,607 | 85,453 |
| Pre-opening expenses | 4,614 | 2,450 | 2,830 |
| Total costs and expenses | 984,982 | 961,760 | 892,690 |
| Operating income | 76,982 | 89,717 | 77,001 |
| Interest expense, net | 2,990 | 16,186 | 18,100 |
| Pre-tax income | 73,992 | 73,531 | 58,901 |
| Income tax expense | 16,297 | 13,991 | 8,686 |
| Net income | $ 57,695 | $ 59,540 | $ 50,215 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, depreciation and amortization expenses have fluctuated over the past three fiscal years. In 2022, the depreciation and amortization expenses totaled $40,926. This figure decreased slightly in 2023 to $40,071, representing a decrease of $855. However, in 2024, the depreciation and amortization expenses increased to $45,304, showing an increase of $5,233 from the previous year.
These changes in depreciation and amortization can be influenced by several factors. The company's investments in new equipment or leasehold improvements would typically lead to higher depreciation expenses. Conversely, the disposal of assets or fully depreciating existing assets could decrease these expenses. For a potential franchisee, understanding these fluctuations is important as it can reflect the level of investment Brueggers Bagels makes in its locations and the overall management of its assets.
It's also worth noting that impairments of property and equipment are recorded within depreciation and amortization expense. Therefore, any significant asset impairments could also impact these figures. Reviewing the complete financial statements and asking Brueggers Bagels for more detailed explanations of these changes would provide a clearer picture of the company's financial management and investment strategies.