how is an investor to know by just reading earnings?
If you just read the "earnings" in the newspaper then you miss the detail that is available from many sources.
BOST broke out the components of income clearly and properly IMO:
Was this an attractive picture?:
<CAPTION>
FISCAL YEARS ENDED
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DECEMBER 31, DECEMBER 29, DECEMBER 28,
1995 1996 1997
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(53 WEEKS)
<S> <C> <C> <C>
Revenue:
Company stores............................. $ 51,566 $ 83,950 $ 261,077
Royalties and franchise related fees....... 74,662 115,510 117,857
Interest income............................ 33,251 65,048 83,434
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Total revenue........................... 159,479 264,508 462,368
Costs and Expenses:
Cost of products sold...................... 19,737 31,160 94,736
Salaries and benefits...................... 31,137 42,172 109,424
General and administrative................. 41,367 99,847 292,534
Provision for loan losses.................. - - 128,000
Losses of Boston Chicken Inc.'s area
developers.............................. - - 49,352
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Total costs and expenses................ 92,241 173,179 674,046
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Income (Loss) from Operations................ 67,238 91,329 (211,678)
Other Income (Expense):
Interest expense, net...................... (13,179) (14,446) (38,209)
Gain on issuances of subsidiary's
stock.................................... - 38,163 192
Other income, net.......................... 314 137 1,603
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Total other income (expense)............ (12,865) 23,854 (36,414)
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Income (Loss) Before Income |
