Panera Bread Company has announced that CEO Ron Shaich will become executive chairman of the board at the adjournment of the company's next annual meeting, expected to occur on May 13, 2010.
Bill Moreton, the company's EVP and co-chief operating officer, will become president and CEO and a member of the board of directors effective at the adjournment of the May 13 meeting.
"I have long harbored desires to contribute to the broader world beyond Panera," Shaich said. "This is something that has been in discussion for several years between me, the board and the senior management team. Given my responsibilities to Panera, I have not had the time to explore how I might contribute beyond Panera. I feel confident doing so now that we have someone ready to assume the role of CEO and given the strength of our management team."
Shaich will continue to devote a significant amount of time to Panera as executive chairman of the board. He will continue to advise on strategic issues, and will provide advice and support to the company's key leaders, mentoring marketing and concept initiatives. Shaich also will take on key projects for the company.
"I couldn't be more proud of what we have accomplished," Shaich said. "In many ways, I see this step as an affirmation of what we have created at Panera. This is not about me leaving Panera, but rather it is my attempt to take what I have learned at Panera to the broader world."
Moreton has had a more than 10-year relationship with the company. From 1998 to 2003, he served as Panera Bread's EVP, chief financial and administrative officer. He then rejoined Panera in November of 2008 as Panera's EVP and co-chief operating officer.
Prior to re-joining Panera, Moreton served as president and CFO of Potbelly Sandwich Works. He also previously served as EVP, subsidiary brand management and CEO of the Baja Fresh subsidiary for Wendy's, where he assisted with strategy and growth of developing brands.
"I will assume the role of CEO with equal parts excitement, honor, pride and a deep sense of responsibility to our customers, our entire organization and our shareholders," he said. "I'm very confident that with the help of our management team, our franchise partners and our thousands of Panera managers and associates, Panera will continue on the successful journey it has been on for the last two decades."
Shaich co-founded Panera 28 years ago under its original name, Au Bon Pain Co. Inc. The company has been publicly traded since June 1991 and was renamed Panera Bread in May 1999.
$600 million share repurchase program
The company also has announced that its board of directors has approved a three-year share repurchase program of up to $600 million. The repurchases may commence as soon as Nov. 20, 2009, and will be effected from time to time on the open market or in privately negotiated transactions, and may make such repurchases under a Rule 10b5-1 Plan. The share repurchase program and the board's authorization of the program may be modified, suspended or discontinued at any time.
"We continue to look for opportunities to deploy our capital to drive earnings growth and shareholder returns," said senior vice president, chief financial officer Jeff Kip. "Although investing in our core business remains our number one priority, the board's approval of this program is a vote of confidence on the growth potential of Panera and its ability to continue to generate cash flow and deploy that cash to generate appropriate returns."
