What was the depreciation and amortization expense for Brueggers Bagels as of December 31, 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, the depreciation and amortization expense for the year ending December 31, 2024, was $45,304. This figure represents the expense recognized for the wear and tear or consumption of the company's assets over that period. Depreciation and amortization are accounting methods used to allocate the cost of tangible and intangible assets, respectively, over their useful lives.
For a prospective Brueggers Bagels franchisee, understanding depreciation and amortization is crucial for assessing the financial health and profitability of the business. This expense impacts the net income and overall financial performance of Brueggers Bagels. It is important to note that impairment charges on coffeehouse and bagel bakery assets and right of use assets are classified as Level 3 within the fair value hierarchy. Impairments of property and equipment, net are recorded within depreciation and amortization expense in the consolidated statements of operations. Impairments of operating lease assets are recorded within occupancy expense in the consolidated statements of operations for the fiscal years ended December 31, 2024 and December 26, 2023 and within depreciation and amortization expenses for the fiscal year ended December 27, 2022.
Depreciation and amortization can affect the amount of income tax Brueggers Bagels owes, as it is a deductible expense. The document also mentions that the company recorded depreciation expense related to these assets of $42.5 million, $36.5 million, and $35.7 million for the fiscal years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively, reported in depreciation and amortization in our consolidated statements of operations. This information is useful for comparing the trend of these expenses over the past three years. A potential franchisee should analyze these trends in conjunction with revenue and capital expenditure data to gain insights into the company's asset management and investment strategies.
Overall, while the depreciation and amortization expense provides a snapshot of asset utilization and cost allocation, prospective franchisees should consider it as part of a broader financial analysis. Understanding the components of this expense and its impact on profitability can aid in making informed investment decisions regarding a Brueggers Bagels franchise.