Exhibit 99.1
PRESS RELEASE
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| Contact: | | Jeffrey W. Kip
SVP, Chief Financial Officer (314-633-7289) |
Panera Bread Reports Second Quarter Revenues Increased 30% and
System-Wide Comparable Bakery-Cafe Sales Increased 3.9% For the Four Weeks Ended June 27, 2006
St. Louis, MO, July 6, 2006 — Panera Bread Company (Nasdaq:PNRA) today reported that revenue increased 30% to $197 million for the second quarter ended June 27, 2006 from $152 million in the comparable period of 2005. Bakery-cafe sales accounted for $157 million of consolidated revenues while franchise royalties and fees and fresh dough sales to franchisees accounted for $40 million of consolidated revenues for the second quarter of 2006.
System-wide comparable bakery-cafe sales increased 3.9% for the four weeks ended June 27, 2006. The breakdown between Company-owned and franchise-operated bakery-cafes is as follows:
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| | | For the 4 weeks | | | For the 13 weeks | | | Year-to-date through | |
| | | ended June 27, 2006 | | | ended June 27, 2006 | | | June 27, 2006 | |
| | | | | | | | | | | | | |
| Company-owned | | | 4.7 | % | | | 3.7 | % | | | 6.1 | % |
| Franchise-operated | | | 3.5 | % | | | 3.0 | % | | | 5.9 | % |
| Total System | | | 3.9 | % | | | 3.2 | % | | | 6.0 | % |
Company-owned comparable bakery-cafe sales increases are based on sales for bakery-cafes that have been in operation and Company-owned for at least 18 months. Franchise-operated comparable bakery-cafe sales increases are based on sales for bakery-cafes that have been in operation for at least 18 months. Both Company-owned and franchise-operated comparable bakery-cafe sales exclude closed locations. Supplemental sales and bakery-cafe information is included in Schedule I.
In 2006, Easter Sunday was on April 16, which occurred during our second quarter of 2006 (the thirteen week period ended June 27, 2006). In 2005, Easter Sunday was on March 27, which occurred in our first quarter of 2005 (the thirteen week period ended March 29, 2005). This shift in Easter timing negatively impacted comparable bakery-cafe sales for the thirteen weeks ended June 27, 2006 by approximately 0.25% to 0.75% based on past holiday results, as normal bakery-cafe operating hours are reduced on Easter.
During the second quarter of 2006, 43 new bakery-cafes were opened (18 Company-owned and 25 franchise-operated) and 1 franchise-operated bakery-cafe was closed.
The Company plans to report second quarter 2006 earnings after the market close on Tuesday, July 25, 2006. The Company will discuss second quarter results in a call that will be broadcast on the Internet at 8:30 A.M. Eastern Time on July 26, 2006. Go to http://www.panerabread.com/investor to access the call or view the release (when issued). Access to the call and the release will be archived for one year.
As previously disclosed, the Company adopted a new quarterly calendar in 2006 whereby each of its quarters include 13 weeks (4-5-4), rather than its prior calendar which had 16 weeks in the first quarter and 12 weeks in the second, third, and fourth quarters. For comparative purposes, fiscal 2005 results and bakery-cafe openings have been conformed to the fiscal 2006 calendar.
Included above are franchised and system-wide comparable bakery-cafe sales increases. System-wide sales are a non-GAAP financial measure that includes sales at all Company-owned bakery-cafes and franchise-operated bakery-cafes, as reported by franchisees. Management uses system-wide sales information internally in connection with store development decisions, planning, and budgeting analyses. Management believes system-wide sales information is useful in assessing consumer acceptance of the Company’s brand and facilitates an understanding of financial performance as the Company’s franchisees pay royalties and contribute to advertising pools based on a percentage of their sales.
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 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.panera.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. These statements are often identified by the words “believe”, “positioned”, “estimate”, “project”, “target”, “continue”, “intend”, “expect”, “future”, “anticipates”, and similar expressions. All forward-looking statements included in this release are made only as of the date of this release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that occur or which we hereafter become aware, after that date. Forward-looking information expresses management’s present belief, expectations, or intentions regarding the Company’s future performance. 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: inability to execute our growth strategy, including variations in the number, timing, and successful nature of Company and franchise bakery-cafe openings and continued successful operation of bakery-cafes; failure to comply with government regulations; loss of a member of senior management; failure or inability to protect our brand, trademarks, or other proprietary rights; competition; rising insurance costs; disruption in our supply chain or increases in ingredient, product, or other supply costs; disruptions or supply issues in our fresh dough facilities; health concerns about the consumption of certain products; complaints and litigation; risks associated with the acquisition of franchise-operated bakery-cafes; other factors, some of which may be beyond our control, effecting our operating results; and other factors that may affect restaurant owners or retailers in general. These and other risks are discussed from time to time in the Company’s SEC reports, including itsForm 10-K for the year ended December 27, 2005 and its quarterly reports on Form 10-Q.
PANERA BREAD COMPANY
Schedule I — Supplemental Sales and Bakery-Cafe Information
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| | | Historical System-Wide Average Weekly Sales | |
| | | 2005 | | | 2004 | | | 2003 | | | 2002 | | | 2001 | | | 2000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| AWS | | $ | 38,318 | | | $ | 36,008 | | | $ | 35,617 | | | $ | 35,388 | | | $ | 33,608 | | | $ | 31,004 | |
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| | | 2006 System-Wide Average Weekly Sales By Year Opened | |
| | | | | | | | | | | 2004 Opens | | | | |
| | | 2006 Opens | | | 2005 Opens | | | & Prior | | | Total | |
| | | | | | | | | | | | | | | | | |
| Bakery-Cafes | | | 65 | | | | 139 | | | | 735 | | | | 939 | |
| Q1 06 | | $ | 44,868 | | | $ | 37,497 | | | $ | 39,837 | | | $ | 39,522 | |
| Q2 06 | | $ | 36,572 | | | $ | 35,792 | | | $ | 39,273 | | | $ | 38,621 | |
| Q3 06 | | | | | | | | | | | | | | | | |
| Q4 06 | | | | | | | | | | | | | | | | |
| 2006 YTD | | $ | 38,048 | | | $ | 36,644 | | | $ | 39,555 | | | $ | 39,063 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Year-Over-Year Change in System-Wide AWS and Comp Sales | |
| | | | | | | | | | | 2004 Opens | | | | | | | |
| | | 2006 Opens | | | 2005 Opens (a) | | | & Prior | | | AWS Total | | | Comp Sales Total | |
| | | | | | | | | | | | | | | | | | | | | |
| Q1 06 | | | N/A | | | | -3.1 | % | | | 8.8 | % | | | 7.8 | % | | | 9.0 | % |
| Q2 06 | | | N/A | | | | -3.9 | % | | | 3.2 | % | | | 1.6 | % | | | 3.2 | % |
| Q3 06 | | | N/A | | | | | | | | | | | | | | | | | |
| Q4 06 | | | N/A | | | | | | | | | | | | | | | | | |
| 2006 YTD | | | N/A | | | | -2.4 | % | | | 6.0 | % | | | 4.6 | % | | | 6.0 | % |
(a) Change in system-wide AWS in 2006 from 2005 compares 139 bakery-cafes in 2006 against 24 and 49 bakery-cafes at the end of the first and second quarters of 2005, respectively.
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| | | 2006 Sales Metrics for Company-Owned Bakery-Cafes | |
| | | | | | | | | | | | | | | Year-Over-Year Change | |
| | | Bakery-Cafe Sales | | | Operating | | | | | | | | | | |
| | | ($ in 000's) | | | Weeks | | | AWS | | | AWS | | | Comp Sales | |
| | | | | | | | | | | | | | | | | | | | | |
| Q1 06 | | $ | 155,081 | | | | 4,074 | | | $ | 38,069 | | | | 6.5 | % | | | 8.9 | % |
| Q2 06 | | $ | 157,151 | | | | 4,221 | | | $ | 37,231 | | | | 0.7 | % | | | 3.7 | % |
| Q3 06 | | | | | | | | | | | | | | | | | | | | |
| Q4 06 | | | | | | | | | | | | | | | | | | | | |
| 2006 YTD | | $ | 312,232 | | | | 8,295 | | | $ | 37,642 | | | | 3.4 | % | | | 6.1 | % |
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| | | 2006 Sales Metrics for Franchise-Operated Bakery-Cafes | |
| | | | | | | | | | | | | | | Year-Over-Year Change | |
| | | Bakery-Cafe Sales | | | Operating | | | | | | | | | | |
| | | ($ in 000's) | | | Weeks | | | AWS | | | AWS | | | Comp Sales | |
| | | | | | | | | | | | | | | | | | | | | |
| Q1 06 | | $ | 299,473 | | | | 7,428 | | | $ | 40,318 | | | | 8.8 | % | | | 9.1 | % |
| Q2 06 | | $ | 303,190 | | | | 7,698 | | | $ | 39,383 | | | | 2.4 | % | | | 3.0 | % |
| Q3 06 | | | | | | | | | | | | | | | | | | | | |
| Q4 06 | | | | | | | | | | | | | | | | | | | | |
| 2006 YTD | | $ | 602,663 | | | | 15,126 | | | $ | 39,843 | | | | 5.5 | % | | | 5.9 | % |
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| | | Bakery-Cafe Openings | |
| | | Company | | | Franchise | | | Total | | | | | | | Company | | | Franchise | | | Total | |
| Q1 06 | | | 9 | | | | 13 | | | | 22 | | | | Q1 05 | | | | 11 | | | | 13 | | | | 24 | |
| Q2 06 | | | 18 | | | | 25 | | | | 43 | | | | Q2 05 | | | | 13 | | | | 12 | | | | 25 | |
| Q3 06 | | | | | | | | | | | | | | | Q3 05 | | | | 16 | | | | 21 | | | | 37 | |
| Q4 06 | | | | | | | | | | | | | | | Q4 05 | | | | 26 | | | | 27 | | | | 53 | |
| 2006 YTD | | | 27 | | | | 38 | | | | 65 | | 2005 YTD | | 66 | | | | 73 | | | | 139 | |
AWS — average weekly sales for the time period indicated and excludes the three additional days in the first quarter of 2005 resulting from the change in fiscal week.
Comp Sales — comparable bakery-cafes sales increases for the time period indicated, which exclude closed locations and are based on sales for bakery-cafes that have been in operation and owned for at least 18 months, and excludes the three additional days in the first quarter of 2005 resulting from the change in fiscal week.
