US bakery-café chain Panera Bread Company has reported rises in revenue and income in the first quarter ended 19 April 2005.
Net income rose to $13.9m, compared with $9.5m in the equivalent period a year earlier. Total revenue was $178m, compared with $130m a year ago.
“All of our key metrics showed strength in the first quarter,” said chairman and CEO Ron Shaich. Growth had been fuelled in part by the fourth quarter 2004 roll out of all natural, antibiotic free chicken as an ingredient in our salads and sandwiches. “The better than expected roll out of all natural chicken, while fuelling very strong comparable sales, does not provide the ‘normal’ earnings flow associated with increased comparable sales growth,” he said. “The success of the chicken is resulting in modestly higher than expected food cost as it was priced to preserve penny profit on each serving rather than to maintain our historic margin percentage.”
