What was the unrealized gain on derivative securities, net of income tax, for Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| \$ 55,963 | \$ | 57,740 | \$ | 52,351 |
CARIBOU COFFEE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(in thousands, except share information)
| provisions | Shares | Amount | Capital | Interest | Loss | Earnings | Total | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Balance, December 28, 2021 | $ 27,144 | 21,125,385 | $ | 211 | $ 336,689 | $ | 3,286 | $ (3,462) | $ 95,478 | $ 459,346 |
| Net income Adjustments required under tax sharing agreement | 759 - | - - | - - | - 766 | 772 - | - - | 48,684 - | 50,215 766 | ||
| Stock based compensation expense | 7,465 | - | - | - | - | - | - | 7,465 | ||
| Accrued interest on shareholder note receivable | (43) | - | - | - | - | - | - | (43) | ||
| Unrealized gain on derivative securities, net of income tax | 12 | - | - | - | - | 805 | - | 817 | ||
| Reclassification of loss on cash flow hedge, net of tax benefit | 35 | - | - | - | - | 2,340 | - | 2,375 | ||
| Settlement of PNC derivative securities and novation of BNP and | ||||||||||
| Rabo derivative securities | 158 | - | - | 355 | - | 317 | - | 830 | ||
| Distribution of non-controlling interest | - | - | - | - | (1,145) | - | - | (1,145) | ||
| Changes in noncontrolling interest from: | ||||||||||
| Distributions (repurchases), including | ||||||||||
| repayments on shareholder notes receivable | (3,623) | - | - | (324) | - | - | - | (3,947) | ||
| Contributions (share issuances), net of shareholder notes | ||||||||||
| receivable | 1,031 | - | - | - | - | - | - | 1,031 | ||
| Fair value remeasurements | 25,614 | - | - | (25,614) | - | - | - | - | ||
| Balance, December 27, 2022 | $ 58,552 | 21,125,385 | $ | 211 | $ 311,872 | $ | 2,913 | $ - | $ 144,162 | $ 517,710 |
| Net income | 840 | - | - | - | 960 | - | 57,740 | 59,540 | ||
| Adjustments required under tax sharing | - | 830 | 830 | |||||||
| agreement | ||||||||||
| Stock based compensation expense | 9,790 | - | - | - | - | - | - | 9,790 | ||
| Accrued interest on shareholder note receivable | (58) | - | - | - | - | - | - | (58) | ||
| PBI equity contribution | - | 189,626 | 2 | 18,796 | - | - | - | 18,798 | ||
| Dividend | (302) | - | - | (18,472) | - | - | - | (18,774) | ||
| Distribution of noncontrolling interest | - | - | - | - | (929) | - | - | (929) | ||
| Changes in noncontrolling interest from: | ||||||||||
| Distributions (repurchases), including | ||||||||||
| repayments on shareholder notes receivable | (15,673) | - | - | - | - | - | - | (15,673) | ||
| Contributions (share issuances), net of shareholder notes | ||||||||||
| receivable | 1,277 | - | - | - | - | - | - | 1,277 | ||
| Fair value remeasurements | 2,644 | - | - | (2,644) | - | - | - | - | ||
| Balance, December 26, 2023 | 57,070 | 21,315,011 | 213 | 310,382 | 2,944 | - | 201,902 | 572,511 | ||
| Net income | 823 | - | - | - | 909 | - | 55,963 | 57,695 | ||
| Divestiture of Roastery Operations | 1,378 | - | - | 95,017 | - | - | - | 96,395 | ||
| Adjustments required under tax sharing | ||||||||||
| agreement | - | - | - | 971 | - | - | - | 971 | ||
| Stock based compensation expense | 13,023 | - | - | - | - | - | - | 13,023 | ||
| Accrued interest on shareholder note receivable | (188) | - | - | - | - | - | - | (188) | ||
| Distribution of noncontrolling interest | - | - | - | - | (931) | - | - | (931) | ||
| Changes in noncontrolling interest from: | (1,773) | - | - | - | - | - | - | (1,773) | ||
| Distributions (repurchases), including | ||||||||||
| repayments on shareholder notes receivable | ||||||||||
| Contributions (share issuances), net of shareholder notes | ||||||||||
| receivable | 1,002 | - | - | - | - | - | - | 1,002 | ||
| Cancellations of outstanding shares | (11,690) | - | - | - | - | - | - | (11,690) | ||
| Fair value remeasurements | (7,191) | - | - | 7,191 | - | - | - | - | ||
| Balance, December 31, 2024 | 52,454 | 21,315,011 | 213 | 413,561 | 2,922 | - | 257,865 | 727,015 |
CARIBOU COFFEE COMPANY, INC.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the unrealized gain on derivative securities, net of income tax, was $817 for the fiscal year ended December 27, 2022. For the fiscal years ended December 31, 2024, and December 26, 2023, there was no unrealized gain on cash flow hedges, net of tax expense.
In June 2022, Brueggers Bagels paid $0.3 million to terminate a portion of its interest rate swap and novated its remaining $0.4 million interest rate swap balance to Panera Brands, Inc. A gain of $0.1 million was recognized as a result of the transaction. The company did not recognize a gain or loss due to hedge ineffectiveness during the fiscal years ended December 31, 2024, December 26, 2023, and December 27, 2022.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and risk management strategies of Brueggers Bagels. Derivative securities and hedging activities can impact the company's profitability and stability, and it's important to consider how these strategies might affect the franchisee's investment.