Panera Bread's same-store sales for the second quarter ended June 30 decreased 0.4 percent while comps for franchise-operated cafes decreased 0.2 percent, the company announced July 28.
Company-owned same-store sales declined 0.7 percent in the second quarter of fiscal 2009 resulting from a transaction decline of 1.4 percent and average check growth of 0.7 percent. The average-check growth was comprised of a 3.0 percent retail price increase and a negative mix impact of 2.3 percent, according to the company.
In the second quarter of fiscal 2009, average weekly sales (AWS) for company-owned new units decreased to $35,580 as compared to $35,776 in the second quarter of fiscal 2008. AWS for company-owned new units year-to-date, through the second quarter of fiscal 2009, was $37,314 compared to $36,640 in the same period of fiscal 2008.
Revenue and net income
Panera Bread also reported a 3 percent revenue increase. For the second quarter, revenue rose to $330.8 million, slightly ahead of analysts' forecast of $330.6 million.
Net income was reported at $20 million, or 65 cents per diluted share, for the second quarter. The amount included a 2 cents per share charge for the write-off of smallwares related to the rollout of new china and a 2 cents per share charge for reserves associated with a state sales tax audit. The results compare to net income of $16 million, or 52 cents per diluted share, for the same period last year, reflecting a 28 percent net income increase.
For the 26 weeks ended June 30, net income was $37 million, or $1.21 per diluted share, as compared to net income of $28 million, or 93 cents per diluted share, for the 26 weeks ended June 24, 2008.
Third quarter outlook
The third quarter of fiscal 2009 target assumes a company-owned comps increase of 2.5 percent to 3.5 percent.
The company has announced that through the first 27 days of the third quarter of fiscal 2009 (beginning July 1, 2009 and ending July 27, 2009), comps have grown approximately 2.8 percent and same-store sales of franchise-operated bakery-cafes have grown approximately 1.8 percent.
The company is targeting approximately 15 to 20 systemwide new unit openings in the third quarter of fiscal 2009 with AWS for new company-owned units between $36,000 to $38,000.
"We have been highly focused on building competitive advantage and growing transactions in the face of this recession. Thus, we are quite gratified to see our initiatives generating sequentially better company-owned comparable bakery-cafe sales growth each period for the last four periods," said chairman and CEO Ron Shaich. "In fact, we believe that the strong comparable bakery-cafe sales growth we have produced in company-owned cafes since the rollout of our recent salad celebration in early June is an indication of the success of our efforts."
The salad rollout included a new Chopped Cobb Salad and an improved chicken salad with grapes almonds.
Panera Bread owns and franchises 1,276 bakery-cafes under the Panera Bread and Saint Louis Bread Co. names as of June 30. Panera also owns and franchises 69 bakery-cafes under the Paradise Bakery & Cafe name.
