Click through the toggle lists below to see an explanation of the different parts of a P&L.
Glossary of P&L Terms
Royalty Sales – all sales subject to Royalty Expense Variable Costs – costs that rise/fall as sales increase/decrease Food/Coke/Delivery – actual cost for food and coke used during the period Variable Labor – all hourly in store labor AM Bonus – 10% of GM Bonus per AM GM Bonus – GM bonus +/- any prior period bonus adjustments Vacation/Sick – Paid Time Off Payroll Taxes – Taxes paid by MAC Pizza for labor HNOA Accident Ins - insurance paid by each store to fund a reserve on the balance sheet - this reserve is used to cover Hired Non-Owned Auto claims Employee Accident Ins – insurance paid by each store to fund a reserve on the balance sheet - this reserve is used to cover employee accident claims Device/Mileage – reimbursement for phone and mileage Advertising – fees to DPZ for National Adv, mailer & local adv Supplies – these should be self explanatory Sales Based Fees – credit card fees, OLO fees, chargebacks, etc. Royalty Expense – royalty fees paid to DPZ Contribution Margin – revenue available after all variable costs are paid
Fixed Costs – costs that are consistent regardless of sales volume Utilities - these should be self explanatory Rent/CAM – monthly rent expense, straight-line rent adjustment, Common Area Maintenance - (taxes, insurance, etc provided by landlord) Repairs & Maintenance - $700 fee to Maint Dept + all other R&M Expenses Hiring Fees – background checks and MVR Accounting Fees - $400 fee to Accounting Dept Payroll Fees – 1.3% of variable labor to Payroll Dept Computer Expense – pulse fees, hardware fees, ink, etc. Health Insurance – the portion of health insurance paid by MAC Pizza GM Labor – GM Salary Recruiting – recruit bonus, recruiting platforms, recruit print materials Bank Charges – banking fees Cash Short – cash overage or shortage Licenses - permits Banquets/Rallies – items purchased for banquets, rallies, or meetings Training – training expenses EBITDA – earnings before interest, taxes, depreciation, amortization Depreciation/Amortization – cost for capital expenses (ovens, walk-ins, etc.) that are expensed over the life of the asset Interest Expense – interest on MAC Pizza debt Net Profit – profit after all expenses
