EXHIBIT 99.1
PRESS RELEASE
Contact: William W. Moreton
Chief Financial Officer
Phone: (314) 633-7123
PANERA BREAD FOURTH QUARTER EARNINGS PER SHARE INCREASED 88% TO $0.32
HIGHLIGHTS:
- - FULL YEAR 2001 EARNINGS PER SHARE INCREASED 75% TO $0.91
- - FULL YEAR 2001 SYSTEM-WIDE SALES INCREASED 51% to $529.4 MILLION
- - 109 BAKERY-CAFES OPENED IN 2001 AVERAGED ANNUALIZED SALES OF $1.9 MILLION
- - SYSTEM-WIDE AVERAGE ANNUALIZED UNIT VOLUMES INCREASED 8.4% TO $1,748,000
- - FISCAL YEAR 2002 EARNINGS PER SHARE TARGET RAISED TO $1.32 UP 45% OVER 2001
- - FISCAL YEAR 2003 EARNINGS PER SHARE TARGET RAISED TO $1.85
St. Louis, MO, March 7, 2002 - Panera Bread Company (Nasdaq:PNRA) today reported
that net income for the 12 weeks ended December 29, 2001, rose 101% to
$4,755,000, or $0.32 per diluted share, from $2,369,000 or $0.17 per diluted
share (excluding a non-recurring after-tax charge of $608,000 related to the
sale of the Au Bon Pain Business Unit) for the 13 weeks ended December 30, 2000.
Including the non-recurring charge related to the sale of the Au Bon Pain
Business Unit, net income was $1,761,000, or $0.13 per diluted share, for the 13
weeks ended December 30, 2000. Net income for the 52 weeks ended December 29,
2001, increased 92% to $13,152,000, or $0.91 per diluted share, from $6,853,000,
or $0.52 per diluted share, for the 53 weeks ended December 30, 2000.
Total revenue increased to $55.7 million for the 12 weeks ended December 29,
2001, which represented a 31% increase over the total revenue of $42.6 million
for the 13 weeks ended December 30, 2000. For the 52 weeks ended December 29,
2001, total revenue was $201.1 million. This represented a 33% increase over the
total revenues of $151.4 million for the 53 weeks ended December 30, 2000.
System-wide sales increased 43% to $146.8 million for the 12 weeks ended
December 29, 2001, compared to $102.9 million for the 13 weeks ended December
30, 2000. For the 52 weeks ended December 29, 2001, system-wide sales increased
51% to $529.4 million compared to $350.8 million for the 53 weeks ended December
30, 2000.
System-wide comparable bakery-cafe sales increased 6.3% for the 12 weeks ended
December 29, 2001 (6.4% for company-owned and 6.2% for franchised bakery-cafes).
This marks the 24th consecutive quarter that Panera Bread (on a stand-alone
basis) has reported positive comparable company bakery-cafe sales. For the 52
weeks ended December 29, 2001, system-wide comparable bakery-cafe sales
increased 5.8% (5.8% for company-owned and 5.8% for franchised bakery-cafes).
During the 12 weeks ended December 29, 2001, 39 new Panera Bread bakery-cafes
were opened (7 company-owned and 32 franchised bakery-cafes). For the 52 weeks
ended December 29, 2001, a total of 109 new bakery-cafes were opened (21
company-owned and 88 franchised bakery-cafes). As of December 29, 2001, there
were 369 (110 company-owned and 259 franchised bakery-cafes) Panera Bread
bakery-cafes operating in 30 states. The total number of active additional
franchise commitments as of December 29, 2001, was 518.
Average weekly system-wide sales for the 12 weeks ended December 29, 2001, were
$35,550 per week (excluding the three specialty bakery-cafes). This is a 9.2%
increase over the $32,560 average per week (excluding the four specialty
bakery-cafes) for the 13 weeks ended December 30, 2000. There were 4,125
operating weeks (excluding the three specialty bakery-cafes) in the 12 weeks
ended December 29, 2001, compared to 3,134 (excluding the four specialty
bakery-cafes) in the 13 weeks ended December 30, 2000.
For the 52 weeks ended December 29, 2001, average system-wide weekly sales
(excluding the three specialty bakery-cafes) were $33,608 ($1,748,000
annualized). This is an 8.4% increase over the average weekly sales (excluding
the four specialty bakery-cafes) of $31,004 ($1,612,000 annualized on a 52 week
basis) for the 53 weeks ended December 30, 2000. There were 15,719 operating
weeks (excluding the three specialty bakery-cafes) for the 52 weeks ended
December 29, 2001 compared to 11,175 operating weeks (excluding the four
specialty bakery-cafes) in the 53 weeks ended December 30, 2000.
For the 109 bakery-cafes opened during fiscal year 2001, the average weekly
sales were $36,674 or $1,907,000 on an annualized basis. There were 2,371
operating weeks for the bakery-cafes that were opened in fiscal year 2001.
Ron Shaich, chairman and chief executive officer, commented, "We are extremely
pleased with our fourth quarter and full year 2001 results. We significantly
exceeded the earnings per share and development targets we set at the beginning
of the year ($0.75 per share and 84 bakery-cafes). Our earnings per share were
up 75% in 2001 on top of the 126% increase in 2000 for Panera Bread on a
stand-alone basis. We are particularly pleased that not only did we
significantly exceed our targets, but we did so while increasing the average
unit volumes of the 109 new bakery-cafes we built in 2001 to $1.9 million and
while delivering 5.8% comparable store sales increases in existing bakery-cafes.
We believe that these results are representative of the strong and growing
positive consumer reaction to the Panera brand across America and speak to the
potential for continued earnings expansion going forward."
Shaich concluded, "Based on our strong sales volumes, and the confidence we and
our franchise partners have, we are increasing our 2002 development target to
110 bakery-cafes (22 company-owned and 88 franchised bakery-cafes). We continue
to target a 3% increase in comparable bakery-cafe sales and an approximately
0.6% improvement in our bakery-cafe margins in 2002. As a result, we are raising
our 2002 earnings per share target to $1.32 per share, which represents a 45%
increase over 2001's earnings per share of $0.91. Additionally, based on the key
leading indicators of our future financial performance, we are targeting 2003
earnings per share at $1.85. "
The company will host an investment community conference call today, March 7,
2002, at 1:00 p.m. Central Standard Time which will include a discussion of its
financial results for the fourth quarter ended December 29, 2001. The meeting
will be carried live on the Internet and interested parties can access the
discussion via www.citizenswebcasting.com. Replay of the webcast is available at
www.citizenswebcasting.com for 90 days.
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. The statements identified by the words "positioned",
"estimate", "project", "target"," continue", "will", "intend", "expect",
"future", "anticipates", and similar expressions express 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 the availability of sufficient capital to the
Company and the developers party to franchise development agreements with the
Company; variations in the number and timing of bakery-cafe openings; public
acceptance of new bakery-cafes; competition; national and regional weather
conditions; changes in restaurant operating costs, particularly food and labor;
and other factors that may affect retailers in general. These and other risks
are discussed from time to time in the Company's SEC reports, including its Form
10-K for the year ended December 30, 2000.
2
Table 1
PANERA BREAD COMPANY
COMPARABLE BAKERY-CAFE SALES
For the 16 For the 12 For the 12 For the 12 For the 52
weeks ended weeks ended weeks ended weeks ended weeks ended
April 21, 2001 July 14, 2001 October 6, 2001 December 29, 2001 December 29, 2001
-------------- ------------- --------------- ----------------- -----------------
Company-owned 7.3% 5.8% 3.4% 6.4% 5.8%
Franchised 7.3% 5.6% 4.2% 6.2% 5.8%
Total System 7.3% 5.7% 3.9% 6.3% 5.8%
3
PANERA BREAD COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
For the 12 For the 13 For the 52 For the 53
weeks ended weeks ended weeks ended weeks ended
----------- ----------- ----------- -----------
Dec. 29, 2001 Dec. 30, 2000 Dec. 29, 2001 Dec. 30, 2000
------------- ------------- ------------- -------------
Revenues:
Restaurant sales ....................................... $42,639 $34,311 $157,684 $125,486
Franchise royalties and fees............................ 5,760 3,956 19,577 12,059
Commissary sales to franchisees......................... 7,276 4,309 23,856 13,844
--------------- --------------- --------------- ----------------
Total revenue..................................... 55,675 42,576 201,117 151,389
Costs and expenses:
Restaurant expenses:
Cost of food and paper products...................... 12,428 10,776 48,502 41,084
Labor................................................ 12,657 9,869 46,431 36,609
Occupancy............................................ 3,067 2,619 11,345 9,313
Other operating expenses............................. 5,149 4,075 20,729 16,050
--------------- --------------- --------------- ----------------
33,301 27,339 127,007 103,056
Commissary cost of sales to franchisees.................. 6,519 3,827 21,965 12,261
Depreciation and amortization............................ 2,968 2,286 10,839 8,412
General and administrative expenses...................... 5,109 5,206 19,589 16,381
Non-recurring charge - 1,394 - 494
--------------- --------------- --------------- ----------------
Total costs and expenses.......................... 47,897 40,052 179,400 140,604
Operating profit .......................................... 7,778 2,524 21,717 10,785
Interest (income) expense, net............................. (5) (16) 72 164
Other expense (income), net................................ 106 (142) 213 (409)
Minority interest.......................................... 8 - 8 -
--------------- --------------- --------------- ----------------
Income before income taxes................................. 7,669 2,682 21,424 11,030
Income tax provision....................................... 2,914 921 8,272 4,177
--------------- --------------- --------------- ----------------
Net income................................................. $4,755 $1,761 $13,152 $6,853
=============== =============== =============== ================
Net income per common share - basic........................ $.34 $.13 $.95 $.55
Net income per common share - diluted...................... $.32 $.13 $.91 $.52
Weighted average shares of common and common
equivalent shares outstanding
Basic................................................... 14,146 13,169 13,892 12,557
Diluted................................................. 14,769 14,016 14,443 13,134
4
PANERA BREAD COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
MARGIN ANALYSIS
(unaudited)
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 For the 13 For the 52 For the 53
weeks ended weeks ended weeks ended weeks ended
----------- ----------- ----------- -----------
Revenues: Dec. 29, 2001 Dec. 30, 2000 Dec. 29, 2001 Dec. 30, 2000
------------- ------------- ------------- -------------
Restaurant sales................................ 76.6% 80.6% 78.4% 82.9%
Franchise royalties and fees.................... 10.3 9.3 9.7 8.0
Commissary sales to franchisees................. 13.1 10.1 11.9 9.1
-------------- -------------- -------------- --------------
Total revenues............................ 100.0% 100.0% 100.0% 100.0%
Costs and expenses:
Restaurant cost of sales (1)
Cost of food and paper products.............. 29.1% 31.4% 30.8% 32.7%
Labor........................................ 29.7 28.8 29.4 29.2
Occupancy.................................... 7.2 7.6 7.2 7.4
Other........................................ 12.1 11.9 13.1 12.8
-------------- -------------- -------------- --------------
Total restaurant cost of sales............ 78.1% 79.7% 80.5% 82.1%
Commissary cost of sales (2) ...................... 89.6% 88.8% 92.1% 88.6%
Depreciation and amortization...................... 5.3 5.4 5.4 5.6
General and administrative......................... 9.2 12.2 9.7 10.8
Non-recurring charges.............................. - 3.3 - .3
-------------- -------------- -------------- --------------
Operating profit................................... 14.0 5.9 10.8 7.1
Interest expenses, net............................. - - - .1
Other expense (income), net........................ .2 (.3) .1 (.3)
Minority interest.................................. - - - -
-------------- -------------- -------------- --------------
Income before income taxes......................... 13.8 6.3 10.7 7.3
Provision for income taxes......................... 5.2 2.2 4.1 2.8
-------------- -------------- -------------- --------------
Net income......................................... 8.5% 4.1% 6.5% 4.5%
============== ============== ============== ==============
(1) As a percentage of Company restaurant sales.
(2) As a percentage of commissary sales to franchisees.