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- NET INCOME ROSE 102% TO $3,059,000 IN THE FIRST QUARTER
- SYSTEM-WIDE SALES INCREASED 57% to $139.7 MILLION IN THE FIRST QUARTER
- SYSTEM-WIDE COMPARABLE BAKERY-CAFE SALES INCREASED 7.3%
- SYSTEM-WIDE AVERAGE UNIT SALES VOLUMES FOR LAST 13 PERIODS INCREASED 14.1% TO $1,694,000
- 25 BAKERY-CAFES OPENED DURING THE QUARTER BRINGING TOTAL TO 285
Panera Bread Company (Nasdaq: PNRA) today reported net income for the sixteen weeks ended April 21, 2001 rose 102% to $3,059,000 or $0.21 per diluted share from $1,515,000 or $0.12 per diluted share for the sixteen weeks ended April 15, 2000. System-wide sales increased 57% to $139.7 million for the sixteen weeks ended April 21, 2001 compared to $88.7 million for the sixteen weeks ended April 15, 2000.
System-wide comparable bakery-cafe sales increased 7.3% for the sixteen weeks ended April 21, 2001 (7.3% for company-owned and 7.3% for franchised bakery-cafes). This marks the 21st consecutive quarter that Panera Bread (on a stand-alone basis) has reported positive comparable company bakery-cafe sales.
During the sixteen weeks ended April 21, 2001, 25 new Panera Bread bakery- cafes were opened (five company-owned and 20 franchised bakery-cafes). The company believes it will meet or exceed its 2001 development target of 84 bakery-cafes (14 company-owned and 70 franchised bakery-cafes). As was previously reported, in connection with the company’s strategy to upgrade the older Saint Louis Bread Co. bakery-cafes that were part of the original acquisition in 1993, the company closed one bakery-cafe in the first quarter. A new bakery-cafe will be opened in the same area later this year. Additionally, one of the franchised specialty bakery-cafes was closed during the first quarter. This brings the total number of bakery-cafes opened as of April 21, 2001 to 285 (94 company-owned and 191 franchised bakery-cafes). One new area development agreement for 20 bakery-cafes was signed in the first quarter bringing the total number of active additional franchise commitments to 551 bakery-cafes as of April 21, 2001.
For the thirteen periods ended April 21, 2001, the system-wide average bakery-cafe annual sales volume (excluding the three specialty cafes) was $1,694,000, which represents a 14% increase over the thirteen periods ended April 15, 2000. The average annualized unit volume for the 25 bakery-cafes opened as of April 21, 2001 is $2,085,000.
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By GlobalDataRon Shaich, chairman and chief executive officer commented, “We are extremely pleased with our strong performance in the first quarter. Our earnings per share of $0.21 again exceeded our own expectations and were 75% higher than our earnings per share in the first quarter of the prior year. Our system-wide comparable bakery-cafe sales increased 7.3% in the first quarter. These sales results were even more impressive when you consider that we are rolling over system-wide comparable bakery-cafe sales increases of 10.2% in the first quarter of 2000. We have always considered our average unit sales volumes to be one of the key leading indicators of our future success. Sales drive store level return on investment (ROI) and store level ROI drives growth and earnings expansion. With average annualized unit volumes of over $2 million for the 25 bakery-cafes that we have opened in the first quarter of 2001 and our system-wide average unit volumes now reaching just under $1.7 million, we feel very confident about our ability to deliver continued strong earnings growth. We further believe these results demonstrate Panera Bread’s leadership in the quick casual (specialty food) category.”
Shaich concluded, “Our strong results in the first quarter are once again causing us to raise our earnings per share target for 2001. We are now targeting full year earnings per diluted share to be $0.82, which would be a 58% increase over our earnings per diluted share of $0.52 in 2000. Broken down by quarter, our earnings per share targets are as follows: $0.15 in the second quarter, $0.19 in the third quarter and $0.27 in the fourth quarter. Our second and third quarter targets are reflective of our expectation that butter pricing will continue at ten-year highs through the summer and fall months. We are raising our 2002 earnings per diluted share target to $1.11, which reflects a 35% growth rate over the 2001 target.”
Panera Bread Company owns and franchises bakery-cafes under the Panera Bread and Saint Louis Bread Co. names. The company is a leader in the emerging specialty bread/cafe category due to its unique bread combined with a quick, casual dining experience. Additional information is available on the company’s website, www.panerabread.com .
Matters discussed in this news release, including any discussion or impact, express or implied, on the Company’s anticipated growth, operating results and future earnings per share contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (identified by the words “positioned”, “estimate”, “project”, “target”, “continue”, “will”, “intend”, “expect”, “future”, “anticipates”, and similar expressions) which express management’s present belief, expectations or intentions regarding the Company’s future performance. Moreover, the Company’s actual results could differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties and could be negatively impacted by a number of factors. These factors include but are not limited to the following: the ability of the Company to aggressively expand its business going forward is subject to the availability of sufficient capital to it and the developers party to franchise development agreements with the Company; and the Company’s operating results may be affected by many factors, including but not limited to variations in the number and timing of bakery-cafe openings and public acceptance of new bakery-cafes, competition and other factors that may affect retailers in general. These and other risks are detailed from time to time in the Company’s SEC reports, including its Form 10-K for the year ended December 30, 2000.
Panera Bread Company
Comparable Bakery-Cafe Sales
For the sixteen weeks ended April 21, 2001
Period Period Period Period
1 2 3 4 Total
Company-owned 6.0% 10.0% 7.7% 5.4% 7.3%
Franchised 8.4% 9.5% 8.1% 3.8% 7.3%
Total system 7.3% 9.7% 7.9% 4.5% 7.3%
PANERA BREAD COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
For the sixteen weeks ended
April 21, 2001 April 15, 2000
Revenues:
Restaurant sales $42,114 $33,951
Franchise revenues 5,069 2,877
Commissary sales to franchisees 6,092 3,598
Total revenue 53,275 40,426
Costs and expenses:
Restaurant expenses:
Cost of food and paper products 13,191 11,300
Labor 12,420 10,012
Occupancy 3,057 2,553
Other operating expenses 5,811 4,331
34,479 28,196
Commissary cost of sales 5,567 3,209
Depreciation and amortization 2,862 2,346
General and administrative expenses 5,341 4,135
Total costs and expenses 48,249 37,886
Operating profit 5,026 2,540
Interest expense, net 30 79
Other income (19) (22)
Income before income taxes 5,015 2,483
Income tax provision 1,956 968
Net income $3,059 $1,515
Net income per common share – basic $0.22 $0.12
Net income per common share – diluted $0.21 $0.12
Weighted average shares of common and common
equivalent shares outstanding:
Basic 13,621 12,180
Diluted 14,259 12,298
PANERA BREAD COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
MARGIN ANALYSIS
The following table sets forth the percentage relationship to total revenues, except where otherwise indicated, of certain items included in the Company’s consolidated statements of operations for the period indicated. Percentages may not add due to rounding:
For the sixteen weeks ended
April 21, 2001 April 15, 2000
Revenues:
Restaurant sales 79.1% 84.0%
Franchise revenues 9.5 7.1
Commissary sales to franchisees 11.4 8.9
Total revenue 100.0% 100.0%
Costs and expenses:
Restaurant cost of sales(A):
Cost of food and paper products 31.3 33.3
Labor 29.5 29.5
Occupancy 7.3 7.5
Other operating expenses 13.8 12.8
Total restaurant cost of sales 81.9 83.0
Commissary cost of sales(B) 91.4 89.2
Depreciation and amortization 5.4 5.8
General and administrative expenses 10.0 10.2
Operating profit 9.4 6.3
Interest expense, net 0.1 0.2
Other income – –
Income before income taxes 9.4 6.1
Income tax provision 3.7 2.4
Net income 5.7% 3.7%
(A) As a percentage of Company restaurant sales.
(B) As a percentage of commissary sales to franchisees.
