ST. LOUIS — Panera Bread Co. reported a comparable-store sales increase of 3.3 percent for company-owned locations and 1.7 percent for franchise-operated locations during the first quarter ended March 25, 2008. Year to date, comps for company-owned locations have increased 7.3 percent.
First-quarter comp results were negatively impacted by approximately 0.3 percent to 0.4 percent from the shift of the Easter holiday from the second quarter of 2007 to the first quarter of 2008, according to the company. The company also implemented a retail price increase in company-owned bakery/cafes for the first quarter of 2008.
Revenue for the first quarter was $304 million, up 27 percent from $239 million reported for the first quarter of 2007.
Net income for the first quarter was $12 million, a decrease of 17 percent compared to net income of $15 million reported for the same period last year.
With all-in wheat costs of approximately $13 per bushel during the first quarter of 2008, compared to $5.80 per bushel in the first quarter of 2007, the company absorbed approximately $2.5 million in costs year-over-year in its bakery-cafe cost of sales and an additional estimated $2.2 million of costs in its fresh dough cost of sales to franchisees.
Despite facing the wheat cost increases, the company says it has driven improvements in its bakery/cafe margin from the removal of Crispani, disciplined pricing and category management programs and other operating cost reduction initiatives.
During the first quarter of 2008, the company opened 27 new bakery/cafes systemwide — 14 company-owned and 13 franchise-operated locations — and closed five bakery/cafes systemwide — three company-owned and two franchise-operated locations.
