Staffing

Panera preparing for IPO under new president

Provided by Panera

May 23, 2023

In preparation for its IPO, Panera Brands CEO Niren Chaudhary is stepping down to become chairman and handing the CEO reins to José Alberto Dueñas, who is president and CEO of Einstein Bros. Bagels.

Former Starbucks CFO and Independent Director Patrick Grismer will become chairman of the Audit Committee, according to a company press release.

The company did not clarify when the IPO would take place but in 2021 said it would happen through a U.S. initial public offering backed by Shake Shack founder Danny Meyer's blank-check company. It put its IPO plans on hold last year, however, citing "the deterioration of the market for initial public offerings over the past several months."

"It has been an honor to lead Panera Brands during such a transformative time for our company," Chaudhary said in the release. "Not only have we introduced innovative new concepts to the fast casual dining industry, but we have expanded our global footprint and formally united Panera Bread, Caribou Coffee and Einstein Bros. to create one of the largest and most vibrant fast casual companies in the world. I have had the privilege of working closely together with José over the last several years, and I look forward to continuing to work with him to drive long-term value creation as chairman."

Over the last four years since Chaudhary became CEO, Panera Brands, which owns Einstein Bros and Caribou Coffee, has expanded digital capabilities, which today account for 53% of total sales at Panera Bread. It has also increased its loyalty base to 53 million members and launched a loyalty subscription model that has resulted in 25% of all Panera transactions now coming from Unlimited Sip Club members.

Since becoming president and CEO of Einstein Bros. in 2019, Dueñas has led a transformation by focusing the business on winning breakfast and creating a culture that champions the general managers as the organization's most important leaders, Chaudhary said in the release. During his tenure, the company executed a major operating model simplification that materially improved the guest experience and rapidly expanded digital access to the brands, resulting in significant improvements in unit-level economics and overall margin expansion. Previously, he served as chief brand officer for Sonic Drive-In and held leadership positions with Darden Restaurants.

"I'm truly honored to have the opportunity to lead the phenomenal group of people at Panera Brands and be part of what is undoubtedly one of the most iconic brands in food," Dueñas said in the release. "I believe that with this incredibly dedicated team and our great franchisee partners, we can continue to deliver a best-in-class guest experience, increase our positive impact in the communities we serve and accelerate key growth-driving initiatives to prepare the Company for a future public listing."

Grismer joined the board in 2022 following a 36-year career in finance, including nine years as a public company CFO at Starbucks, Hyatt Hotels and Yum! Brands.

Panera Brands has 3,852 locations and 120,000 employees.