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Panera Bread Company is a national bakery$-$cafe concept with $1,380$ Company$-$owned and franchise$-$operated bakery$-$cafe locations in $40$ states and in Ontario, Canada. The company has grown from serving approximately $60$ customers a day at its first bakery$-$cafe to currently serving nearly six million customers a week system$-$wide, becoming one of the largest food service companies in the United States. Sara Lee Corporation is a global manufacturer and marketer of high$-$quality, brand$-$name products for consumers throughout the world focused primarily on the meats, bakery and beverage categories. Selected financial information about each company follows:

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$$Sara Lee$$Panera Bread$$Sales$$10,793$million$$$$1,353\mathrm{.}5$million$$Net Income$$527$million$$$$86\mathrm{.}8$million$$Return on Assets $($ROA$)8\mathrm{.}32\%11\mathrm{.}55\%$Profit margin$7\mathrm{.}05\%6\mathrm{.}45\%$Asset turnover$1\mathrm{.}18\%1\mathrm{.}79$

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Required:

Why is Sara Lee less profitable than Panera Bread?

Return on assets and return on sales in the bakery industry are $4\mathrm{.}85\%$ and $8\mathrm{.}16\%,$ respectively. How do these two companies compare to their industry and what might explain any noted differences?