EXHIBIT 99.1
PRESS RELEASE
Contact: William W. Moreton
Chief Financial Officer
Phone: (314) 633-7123
PANERA BREAD FIRST QUARTER EARNINGS PER SHARE INCREASED 67% TO $0.35 AND
COMPANY ANNOUNCES UPWARD REVISION TO 2002 TARGET
HIGHLIGHTS:
- - SYSTEM-WIDE SALES INCREASED 48% to $207.0 MILLION IN THE FIRST QUARTER
- - THE 24 BAKERY-CAFES OPENED IN Q1 AVERAGED ANNUALIZED SALES OF $2.08 MILLION
- - SYSTEM-WIDE AVERAGE ANNUALIZED SALES INCREASED 5.9% TO $1.78 MILLION
- - 2002 EARNINGS PER SHARE TARGET RAISED TO $1.40, A 54% INCREASE OVER 2001
RESULTS
St. Louis, Mo. May 30, 2002 - Panera Bread Company (Nasdaq:PNRA) today reported
that net income for the 16 weeks ended April 20, 2002, rose to $5,225,000, or
$0.35 per diluted share, from $3,059,000, or $0.21 per diluted share, for the 16
weeks ended April 21, 2001.
System-wide sales and total revenues increased 48% and 45%, respectively, for
the 16 weeks ended April 20, 2002, compared to the 16 weeks ended April 21,
2001, as follows:
16 Weeks ended 16 Weeks Ended Percentage
April 20, 2002 April 21, 2001 Increase
-------------- -------------- ----------
System-wide sales $207,001,000 $139,691,000 48%
Total revenues $ 77,005,000 $ 53,275,000 45%
System-wide comparable bakery-cafe sales (excluding specialty bakery-cafes and
closed locations) increased 5.5% for the 16 weeks ended April 20, 2002 (5.3% for
company-owned and 5.6% for franchised bakery-cafes). This marks the 25th
consecutive quarter that Panera Bread (on a stand-alone basis) has reported
positive comparable company bakery-cafe sales.
As of April 20, 2002, there were 390 Panera Bread bakery-cafes (including one
specialty bakery-cafe). During the 16 weeks ended April 20, 2002, we opened 24
new Panera Bread bakery-cafes and closed three bakery-cafes, as follows:
Company-owned Franchised Total System
------------- ---------- ------------
Bakery-cafes as of December 29, 2001 110 259 369
Bakery-cafes opened 7 17 24
Bakery-cafes purchased from franchisee 3 (3) 0
Bakery-cafes closed (3) 0 (3)
------ ------- ------
Bakery-cafes as of April 20, 2002 117 273 390
During the first quarter, the company purchased the three existing bakery-cafes
and the development rights for the Jacksonville market from its Jacksonville
franchisee. Additionally, the company closed three bakery-cafes during the first
quarter. These consisted of the two company-owned specialty bakery-cafes and one
of the original Saint Louis Bread Co. locations acquired in 1993.
The total number of active additional franchise commitments in place as of April
20, 2002 was 507.
System-wide average weekly sales (excluding the specialty bakery-cafes and
closed locations) for the 16 weeks ended April 20, 2002, were $34,264 per week.
This equates to an annualized sales volume of $1,782,000, a 5.9% increase over
the same period in the prior year. A summary of bakery-cafe sales and
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operating weeks is as follows:
16 weeks ended 16 weeks ended Percentage
April 20, 2002 April 21, 2001 Increase
-------------- -------------- --------
Average weekly bakery-cafe sales(1) $34,264 $32,345 5.9%
Operating weeks(1) 6,033.0 4,301.8 40.2%
(1) Excluding specialty bakery-cafes and closed locations.
Ron Shaich, chairman and chief executive officer, commented, "We were very
pleased with our record results in the first quarter. These results were driven
by our very strong average unit volumes. Even more significantly, the new
bakery-cafes that were opened in the first quarter are on a pace to achieve an
average annualized unit sales volume in excess of $2.0 million. These
bakery-cafes are performing significantly better than the system average. This
trend continues to speak to our broad consumer appeal and the increasing
customer awareness of our concept. These sales volumes have also resulted in
very high returns on investment, which have in turn led to accelerating new
bakery-cafe development."
Mr. Shaich concluded, "As we look forward for the remainder of fiscal year 2002,
we are increasing our development target to 115 bakery-cafes (25 company-owned
and 90 franchised). We are also targeting a 3% to 4% increase in comparable
bakery-cafe sales and a 0.8% to 1.0% improvement in bakery-cafe margins. As a
result of our accelerating development, strong sales volumes, and expanding
margins, we are raising our 2002 earnings per share target to $1.40 per share,
representing a 54% increase over 2001. This breaks down to the following
quarterly earnings per share targets: second quarter $0.26; third quarter $0.31;
and fourth quarter $0.48. The company remains committed to its 2003 target of
$1.85 per share."
The company will discuss these results in a conference call today, May 30, 2002,
at 1:00 PM Central Daylight Time. To access the call, go to
http://www.panerabread.com/pages/a_ir_news.php, where it will also be archived
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 "believe",
"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 29, 2001.
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PANERA BREAD COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
FOR THE 16 WEEKS ENDED
APRIL 20, APRIL 21,
2002 2001
---- ----
Revenues:
Bakery-cafe sales....................................... $ 59,477 $ 42,114
Franchise royalties and fees............................ 7,304 5,069
Commissary sales to franchisees......................... 10,224 6,092
----------- -----------
Total revenue......................................... 77,005 53,275
----------- -----------
Costs and expenses:
Bakery-cafe expenses:
Cost of food and paper products....................... 17,890 13,191
Labor................................................. 17,944 12,420
Occupancy............................................. 4,336 3,057
Other operating expenses.............................. 7,851 5,811
----------- -----------
Total bakery-cafe expenses.......................... 48,021 34,479
----------- -----------
Commissary cost of sales to franchisees................. 9,445 5,567
Depreciation and amortization........................... 3,788 2,862
General and administrative expenses..................... 7,284 5,341
----------- -----------
Total costs and expenses.............................. 68,538 48,249
----------- -----------
Operating profit............................................ 8,467 5,026
Interest expense............................................ 8 30
Other expense (income), net................................. 201 (19)
Minority interest........................................... 30 --
----------- -----------
Income before income taxes.................................. 8,228 5,015
Income taxes................................................ 3,003 1,956
----------- -----------
Net income............................................ $ 5,225 $ 3,059
=========== ===========
Net income per common share - basic......................... $ .36 $ .22
Net income per common share - diluted....................... $ .35 $ .21
Weighted average shares of common and common
equivalent shares outstanding............................
Basic................................................... 14,324 13,621
Diluted................................................. 14,967 14,259
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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 16 WEEKS ENDED
APRIL 20, APRIL 21,
2002 2001
---- ----
Revenues:
Bakery-cafe sales.......................................... 77.2% 79.1%
Franchise royalties and fees............................... 9.5 9.5
Commissary sales to franchisees............................ 13.3 11.4
-------- --------
Total revenue....................................... 100.0% 100.0%
-------- --------
Costs and expenses:
Bakery-cafe expenses(1):
Cost of food and paper products...... 30.1 31.3
Labor.................................................. 30.2 29.5
Occupancy.............................................. 7.3 7.3
Other operating expenses............................... 13.2 13.8
-------- --------
Total bakery-cafe expenses.......................... 80.7 81.9
-------- --------
Commissary cost of sales to franchisees(2)................. 92.4 91.4
Depreciation and amortization.............................. 4.9 5.4
General and administrative expenses........................ 9.5 10.0
-------- --------
Operating profit............................................... 11.0 9.4
Interest expense............................................... -- 0.1
Other expense (income), net.................................... 0.3 --
Minority interest.............................................. -- --
-------- --------
Income before income taxes..................................... 10.7 9.4
Income taxes................................................... 3.9 3.7
-------- --------
Net income.......................................... 6.8% 5.7%
======== ========
(1) As a percentage of Company bakery-cafe sales.
(2) As a percentage of commissary sales to franchisees.
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