Panera Bread Company (Nasdaq: PNRA) reported net income of $1,933,000 or $.15 per diluted share in the second quarter ended July 8, 2000. This included a $900,000 pre-tax ($549,000 after tax) gain related to the sale of Au Bon Pain. Excluding this one-time gain, the Company reported net income of $1,384,000 or $.11 per share. This compares to $240,000 or $.02 per share for Panera Bread on a stand alone basis (which excludes the results of the Au Bon Pain Business Unit which was sold on May 16, 1999 and includes a proforma allocation for overhead services provided by Au Bon Pain Co., Inc.) for the second quarter of 1999. This represents a 477% increase in earnings over the prior year. Including the results for the Au Bon Pain Business Unit, the Company earned $366,000 or $.03 per share in the second quarter of 1999.

The Company reported cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) of $4,166,000 (excluding the one-time gain on the sale of Au Bon Pain) for the second quarter compared to $1,935,000 in the second quarter of 1999 for Panera Bread on a stand alone basis. On a year to date basis, EBITDA (excluding the gain on the sale of Au Bon Pain) climbed 97% to $9,074,000.

System-wide sales for Panera Bread on a stand alone basis increased 69% to $73.8 million for the second quarter of 2000 compared to $43.7 million for the second quarter of 1999. Year to date system-wide sales rose 76.3% to $162.6 million in 2000 from $92.2 million in the same period last year. System-wide comparable bakery-cafe sales increased 9.3% for the second quarter and 9.8% for the 28-week period ended July 8, 2000. Comparable franchise bakery-cafe sales increased 11.5% for the second quarter and 12.1% for the 28-week period ended July 8, 2000. Comparable company-owned bakery-cafe sales increased 7.9% for the second quarter and 8.5% for the twenty-eight week period ended July 8, 2000. This marks the 18th consecutive quarter that Panera Bread (on a stand alone basis) has had positive comparable company bakery-cafe sales.

In the second quarter of 2000, 16 new Panera Bread bakery-cafes were opened. Two of those opened were company-owned bakery-cafes and 14 were franchised bakery-cafes. This brings the total number of new Panera Bread bakery-cafes opened during this year to 35. As of July 8, 2000, 216 Panera Bread bakery-cafes were operating in 25 states (86 company-owned and 130 franchised bakery-cafes) and there are franchise commitments in place for the development of an additional 511 bakery-cafes.

The system-wide average annualized bakery-cafe volume for all Panera Bread bakery-cafes open (excluding two that are specialty cafes) was $1,537,000 through the end of the second quarter. This represents a 17% increase over the average annualized bakery-cafe volumes during the same period last year. Average annualized unit volume for the 35 bakery-cafes opened in 2000 is $1,691,000.

Ron Shaich, Chairman and Chief Executive Officer commented, "We continue to be pleased with our performance and what it says about the future. Our results continue to be driven by strong sales reflective of the consumers' broad acceptance of our concept across 216 bakery-cafes and many regions of our country. By every measure, the trends are positive. Our comparable bakery-cafe sales increased 9.3% in the second quarter. Our average annualized bakery-cafe volume increased 17% to $1,537,000 and our 2000 units continue to open at volumes of approximately $1,700,000. As we have previously stated, we believe that unit volume levels are the most important leading indicator of our company's future success. Elevated sales volumes drive up store level return on investment (ROI) and this ROI in turn drives franchisee confidence, unit expansion and ultimately earnings growth. This has resulted in our franchisees opening 30 bakery-cafes through the second quarter, which is ahead of our original plan."

Shaich concluded, "as a result of our continuing strong operating trends, we are revising our previously announced targets upward. We are now targeting 2000 full year earnings per share (excluding the one-time gain on the sale of Au Bon Pain) at $.48 ($.52 including the gain on the sale of Au Bon Pain). Our target breaks down into $.10 per share in the third quarter and $.15 per share in the fourth quarter. From this elevated 2000 base, we continue to target a 30% increase in 2001 earnings which equates to $.63 per share."

Panera Bread Company owns and franchises bakery-cafes under the Panera Bread and Saint Louis Bread Co. names. The Company is the leader in the emerging specialty bread/cafe category due to its unique bread combined with a quick, casual dining experience. Panera Bread Company currently has 88 company-owned bakery-cafes and 136 franchised bakery-cafes in 26 states. 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", "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 25, 1999.


                             Panera Bread Company
Comparable Bakery-Cafe Sales

Fiscal 2000

For the 16 weeks For the 12 weeks For the 28 weeks
ended April 15, 2000 ended July 8, 2000 ended July 8, 2000

Company-owned 8.9% 7.9% 8.5%
Franchised 12.7% 11.5% 12.1%
Total system 10.2% 9.3% 9.8%



For the twelve weeks ended July 8, 2000

Period 5 Period 6 Period 7 Total

Company-owned 5.1% 9.2% 9.4% 7.9%
Franchised 9.8% 12.9% 11.7% 11.5%
Total system 6.9% 10.6% 10.4% 9.3%



PANERA BREAD COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)

For the 12 weeks ended For the 28 weeks ended
July 8, July 10, July 8, July 10,
2000 1999 2000 1999
Revenues:
Restaurant sales $27,099 $33,848 $61,050 $107,259
Franchise sales and other
revenues 2,444 1,403 5,321 3,670
Commissary sales to
franchisees 2,751 1,626 6,349 3,873
Total revenue 32,294 36,877 72,720 114,802

Costs and expenses:
Restaurant expenses:
Cost of food and paper
products 9,020 11,300 20,320 35,661
Labor 8,019 9,814 18,031 31,792
Occupancy 1,983 3,231 4,536 12,031
Other operating expenses 3,458 4,239 7,789 13,027
22,480 28,584 50,676 92,511

Commissary cost of sales 2,396 1,526 5,605 3,166
Depreciation and
amortization 1,828 1,418 4,174 3,218
General and administrative
expenses 3,244 3,553 7,379 10,441
Non-recurring charge - - - 5,545
Total costs and expenses 29,948 35,081 67,834 114,881

Operating profit (loss) 2,346 1,796 4,886 (79)
Interest expense, net 69 620 148 2,504
Other expense (income), net 8 57 (14) 460
Gain on Sale of Au Bon Pain
Division 900 - 900 -
Minority interest - (14) - (25)
Income (loss) before income
taxes 3,169 1,133 5,652 (3,018)
Income tax provision 1,236 385 2,204 859
Net income (loss) 1,933 748 3,448 (3,877)

Extraordinary loss from early
extinguishment of debt,
net of tax of $197 - 382 - 382
Net income (loss) $1,933 $366 $3,448 $(4,259)


Net income (loss) per common
share - basic $0.16 $0.03 $0.28 $(0.35)
Net income (loss) per common
share - diluted $0.15 $0.03 $0.27 $(0.35)

Weighted average shares of
common and common equivalent
shares outstanding:
Basic 12,325 12,142 12,243 12,120
Diluted 12,879 12,165 12,548 12,120

Note: The above results for the periods ended July 10, 1999 include the
results of the Au Bon Pain Division, which was sold on May 16, 1999.


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 12 weeks ended  For the 28 weeks ended
July 8, July 10, July 8, July 10,
2000 1999 2000 1999
Revenues:
Restaurant sales 83.9% 91.8% 84.0% 93.4%
Franchise and other
revenues 7.6 3.8 7.3 3.2
Commissary sales to
franchisees 8.5 4.4 8.7 3.4
Total revenues 100.0% 100.0% 100.0% 100.0%

Costs and expenses:
Restaurant cost of sales (A)
Cost of food and paper
products 33.3 33.4 33.3 33.2
Labor 29.6 29.0 29.5 29.6
Occupancy 7.3 9.5 7.4 11.2
Other operating expenses 12.8 12.5 12.8 12.1
Total restaurant cost of
sales 83.0 84.4 83.0 86.3

Commissary cost of sales (B) 87.1 93.8 88.3 81.7
Depreciation and amortization 5.7 3.8 5.7 2.8
General and administrative 10.0 9.6 10.1 9.1
Non-recurring charges - - - 4.8
Operating profit (loss) 7.3 4.9 6.7 -
Interest expenses, net - 1.7 - 2.2
Other expense (income), net .02 0.2 .02 0.4
Gain on sale of Au Bon Pain
Division 2.7 - 1.1 -
Minority interest - - - -
Income (loss) before income
taxes 9.8 3.1 7.8 (2.6)
Income tax provision (benefit) 3.8 1.0 3.0 0.7
Extraordinary loss from early
extinguishments of debt, net
of tax - 1.0 - 0.3

Net (loss) income 6.0% 1.0% 4.7% (3.7)%


Note: The above results for the periods ended July 10, 1999 include the
results of the Au Bon Pain Division, which was sold on May 16,
1999.

(A) As a percentage of Company restaurant sales.
(B) As a percentage of commissary sales to franchisees.