News

Panera Bread systemwide comps up 9.5%

April 27, 2010

Panera Bread Company has reported a company-owned same-store sales increase of 10 percent for its first 2010 quarter ended March 30, 2010.

Company-owned comparable bakery-cafe sales increased 9.5 percent, 8.1 percent, and 12.7 percent in the fiscal 2010 monthly periods of January, February and March, respectively, versus the comparable periods in fiscal 2009.

Franchise-operated same-store sales increased 9.2 percent in the first quarter of fiscal 2010 versus the same period in fiscal 2009 with increases of 9.3 percent, 6.9 percent and 12.1 percent recorded for January, February and March, respectively. As a result, system-wide comps increased 9.5 percent in the first quarter of fiscal 2010.

Transaction growth of 3.5 percent and average check growth of 6.5 percent contributed to the company-owned comps increase, according to Panera Bread's earnings report. Average check growth in turn was comprised of retail price increases of approximately 2 percent and mix impact of approximately 4.5 percent.

Total revenue for the quarter increased 14 percent to $364 million, up from $321 million reported during the same period last year.

Net income of $26 million, or $0.82 per diluted share, was reported for the 13 weeks of the first quarter, an increase of 44 percent compared to net income of $17 million, or $0.57 per diluted share, for the 13 weeks of the first quarter ended March 31, 2009.

Average weekly sales

In the first quarter of fiscal 2010, average weekly sales for company-owned new units was $56,113 compared to $41,922 in the first quarter of fiscal 2009.

During the first quarter of fiscal 2010, the company and its franchisees opened eight new bakery-cafes system-wide, resulting in 1,388 bakery-cafes open systemwide as of March 30, 2010.

There are now 585 company-owned locations and 785 franchised locations operating in the Panera Bread system. No units were closed during the first quarter.

Q2 2010

Panera Bread co-founder and CEO Ron Shaich will step down from his post May 13. He will become executive chairman of the board while COO Bill Moreton will step into the role of CEO.

"As I look back on the nearly 30 years since I co-founded this company, I am pleased that we've been able to deliver for those shareholders who believed in our vision. I am pleased that our long-term investors have been rewarded with the strongest stock performance of any public restaurant company when measured over the last decade, and the second best stock performance of any consumer discretionary company when measured over that same decade," Shaich said.

"As well, I have a deep sense of pride that we've been able to create a company that has enriched the lives of our team members and improved the quality of life in the almost 1,400 communities in which we operate. As I look to the future, I am confident that consumers will continue to respond to Panera and the quality of its food, its environment and its people, and believe that we have in place the concept, the strategy and the leadership to deliver extraordinary customer satisfaction, competitive advantage and sustained earnings growth well into the future."

The company also is targeting approximately 14 to 16 systemwide new unit openings in the second quarter of fiscal 2010 with average weekly sales for company-owned new units consistent with its full year target of $36,000 to $38,000.

For the year, Panera Bread continues to target approximately 80 to 90 systemwide new unit openings for with average weekly sales for company-owned new units of $36,000 to $38,000.