News

Panera posts first quarter 2011 earnings

April 28, 2011

Panera Bread Co. recently posted its first quarter 2011 earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.07, as well as the prior-year quarter earnings of 82 cents. Better-than-expected results were driven by double-digit growth in the top line.

Panera reported total revenue of $422.1 million in the first quarter, up 16 percent compared to the same period last year.

System-wide same-store sales in the quarter expanded 3.3 percent, a bit below the guided range of 4 percent to 6 percent. Comps at company-owned locations increased 3.3 percent, driven by higher transaction growth (1.7 percent) and average check growth (1.6 percent), while franchise-operated same-store sales jumped 3.4 percent.

The company did not repurchase any shares during the first quarter and has approximately $448 million available under its existing $600 million repurchase authorization.

During the quarter, Panera opened eight new bakery-cafes and 11 franchised bakery-cafes. The company now operates 1,467 bakery-cafes, of which 665 are company owned and the rest are franchised.

In April 2011, Panera also acquired all the assets and certain liabilities of 25 bakery-cafes from one of its Milwaukee franchisees.

Outlook

For FY 2011, Panera raised its earnings per share target from $4.40 to $4.47, reflecting a 23 percent year-over-year earnings growth. The full-year guidance represents company-owned same-store-sales growth of 5 percent to 6 percent, which has been narrowed down from the previous forecast of 4 percent to 6 percent.

The company has projected second quarter 2011 earnings guidance in the range of $1.15 to $1.17 per share. The guidance reflects company-owned comparable sales growth of 5 percent to 6 percent. Management also predicts a price increase of 2.5 percent.

The company expects to develop 27 to 29 new units for the second quarter. For 2011, the number stands at approximately 95 to 105. New openings would increase both company-owned and franchised units, with company-owned units comprising slightly more than 50 percent of the mix.