EXHIBIT 99.1
PRESS RELEASE
Contact: William W. Moreton
Chief Financial and Administrative Officer
Phone: (314) 633-7123
PANERA BREAD SECOND QUARTER EARNINGS PER SHARE INCREASED 63% TO $0.13
St. Louis, Mo. August 22, 2002 - Panera Bread Company (Nasdaq:PNRA) today
reported that net income for the 12 weeks ended July 13, 2002, rose to
$3,873,000 compared to $2,354,000 for the 12 weeks ended July 14, 2001. Earnings
per diluted share increased 63% to $0.13 for the 12 weeks ended July 13, 2002
from $0.08 for the 12 weeks ended July 14, 2001. Earnings per share amounts have
been adjusted to reflect the two-for-one stock split payable in the form of a
stock dividend on June 24, 2002.
System-wide sales and total revenues increased 45% and 43%, respectively, for
the 12 weeks ended July 13, 2002, compared to the 12 weeks ended July 14, 2001,
as follows:
<Table>
<Caption>
12 Weeks ended 12 Weeks Ended Percentage
July 13, 2002 July 14, 2001 Increase
-------------- -------------- -------------
System-wide sales $ 167,214,000 $ 115,102,000 45%
Total revenues $ 62,274,000 $ 43,680,000 43%
</Table>
System-wide comparable bakery-cafe sales (excluding the one specialty
bakery-cafe and closed locations) increased 6.7% for the 12 weeks ended July 13,
2002 (4.6% for company-owned and 7.8% for franchised bakery-cafes). This marks
the 26th consecutive quarter that Panera Bread (on a stand-alone basis) has
reported positive comparable company bakery-cafe sales. Comparable bakery-cafes
include those bakery-cafes that have been open for at least 18 four week periods
in the reporting quarter.
As of July 13, 2002, there were 414 Panera Bread bakery-cafes (including the one
specialty bakery-cafe). During the 12 weeks ended July 13, 2002, 25 new Panera
Bread bakery-cafes were opened and one bakery-cafe was closed, as follows:
<Table>
<Caption>
Company-owned Franchised Total System
------------- ------------- -------------
Bakery-cafes as of April 20, 2002 117 273 390
Bakery-cafes opened 6 19 25
Bakery-cafes closed 0 -1 -1
------------- ------------- -------------
Bakery-cafes as of July 13, 2002 123 291 414
</Table>
During the second quarter, the company signed a new area development agreement
in Los Angeles county for a commitment of 17 new bakery-cafes and increased an
existing area development agreement in Iowa by three bakery-cafes. This brought
the total number of active additional franchise commitments in place as of July
13, 2002 to 509.
System-wide average weekly sales (excluding the one specialty bakery-cafe and
closed locations) for the 12 weeks ended July 13, 2002, were $34,650 per week.
This equates to an annualized sales volume of $1,802,000, a 6.3% increase over
the same period in the prior year. A summary of bakery-cafe sales and operating
weeks is as follows:
<Table>
<Caption>
12 weeks ended 12 weeks ended Percentage
July 13, 2002 July 14, 2001 Increase
-------------- -------------- -------------
Average weekly bakery-cafe sales(1) $ 34,650 $ 32,590 6.3%
Operating weeks(1) 4,824.7 3,525.6 36.8%
</Table>
1
(1) Excludes the one specialty bakery-cafe and closed locations.
Ron Shaich, chairman and chief executive officer, commented, "We are very
pleased with our record second quarter results. Our 63% growth in year over year
earnings per share was fueled by our very strong average unit volumes, which
have risen to $1.8 million on an annualized basis, and the development activity
those volumes engender. These record results further demonstrate the consumer's
growing desire for a higher quality food experience rooted in bread expertise.
That trend, in turn, speaks to the potential of Panera Bread to significantly
expand its number of bakery-cafes and its earnings in the future."
BUSINESS OUTLOOK
The company continues to target full year fiscal 2002 earnings per share of
$0.70, which represents a 52% increase over earnings per share of $0.46 in
fiscal year 2001. The third and fourth quarters' earnings per share targets
remain $0.16 and $0.24, respectively.
The company is targeting comparable bakery-cafe sales increases in the 3% to 4%
range.
The company also continues to target the opening of 115 new bakery-cafes in 2002
(25 company-owned and 90 franchised). The remaining opening targets break down
into 24 bakery-cafes in the third quarter (3 company-owned and 21 franchised)
and 42 in the fourth quarter (9 company-owned and 33 franchised).
The company also reiterates its commitment to the 2003 earnings per share target
of $0.98, which would be a 40% increase over the 2002 earnings per share target.
The company will discuss these results in a conference call today, August 22,
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.
2
PANERA BREAD COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
<Table>
<Caption>
FOR THE TWELVE WEEKS ENDED FOR THE TWENTY-EIGHT WEEKS ENDED
------------------------------ --------------------------------
JULY 13, 2002 JULY 14, 2001 JULY 13, 2002 JULY 14, 2001
------------- ------------- ------------- -------------
Revenues:
Bakery-cafe sales .................................. $ 48,192 $ 34,445 $ 107,669 $ 76,559
Franchise royalties and fees ....................... 6,096 4,267 13,400 9,336
Commissary sales to franchisees .................... 7,986 4,968 18,210 11,061
------------- ------------- ------------- -------------
Total revenue ................................. 62,274 43,680 139,279 96,956
------------- ------------- ------------- -------------
Costs and expenses:
Bakery-cafe expenses:
Cost of food and paper products ................. 15,296 10,858 33,186 24,045
Labor ........................................... 14,619 10,250 32,563 22,670
Occupancy ....................................... 3,414 2,505 7,750 5,562
Other operating expenses ........................ 6,733 4,662 14,584 10,473
------------- ------------- ------------- -------------
Total bakery-cafe expenses .................... 40,062 28,275 88,083 62,750
Commissary cost of sales to franchisees ............ 7,329 4,670 16,774 10,242
Depreciation and amortization ...................... 3,139 2,396 6,927 5,258
General and administrative expenses ................ 5,609 4,419 12,893 9,760
------------- ------------- ------------- -------------
Total costs and expenses ...................... 56,139 39,760 124,677 88,010
------------- ------------- ------------- -------------
Operating profit ...................................... 6,135 3,920 14,602 8,946
Interest expense ...................................... 6 31 14 61
Other (income) expense, net ........................... (10) 41 191 21
Minority interest ..................................... 40 -- 70 --
------------- ------------- ------------- -------------
Income before income taxes ............................ 6,099 3,848 14,327 8,864
Income taxes .......................................... 2,226 1,494 5,229 3,450
------------- ------------- ------------- -------------
Net income .................................... $ 3,873 $ 2,354 $ 9,098 $ 5,414
============= ============= ============= =============
Net income per common share - basic ................... $ .13 $ .08 $ .32 $ .20
============= ============= ============= =============
Net income per common share - diluted ................. $ .13 $ .08 $ .30 $ .19
============= ============= ============= =============
Weighted average shares of common and common
equivalent shares outstanding
Basic .............................................. 28,845 27,814 28,733 27,422
============= ============= ============= =============
Diluted ............................................ 30,025 29,300 29,874 28,793
============= ============= ============= =============
</Table>
3
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:
<Table>
<Caption>
FOR THE TWELVE WEEKS ENDED FOR THE TWENTY-EIGHT WEEKS ENDED
---------------------------------- ----------------------------------
JULY 13, 2002 JULY 14, 2001 JULY 13, 2002 JULY 14, 2001
--------------- --------------- --------------- ---------------
Revenues:
Bakery-cafe sales ............................. 77.4% 78.9% 77.3% 79.0%
Franchise royalties and fees .................. 9.8 9.8 9.6 9.6
Commissary sales to franchisees ............... 12.8 11.4 13.1 11.4
--------------- --------------- --------------- ---------------
Total revenue ............................ 100.0% 100.0% 100.0% 100.0%
--------------- --------------- --------------- ---------------
Costs and expenses:
Bakery-cafe expenses(1):
Cost of food and paper products ............ 31.7 31.5 30.8 31.4
Labor ...................................... 30.3 29.8 30.2 29.6
Occupancy .................................. 7.1 7.3 7.2 7.3
Other operating expenses ................... 14.0 13.5 13.5 13.7
--------------- --------------- --------------- ---------------
Total bakery-cafe expenses ............... 83.1 82.1 81.8 82.0
--------------- --------------- --------------- ---------------
Commissary cost of sales to franchisees(2) .... 91.8 94.0 92.1 92.6
Depreciation and amortization ................. 5.0 5.5 5.0 5.4
General and administrative expenses ........... 9.0 10.1 9.3 10.1
--------------- --------------- --------------- ---------------
Operating profit ................................. 9.9 9.0 10.5 9.2
Interest expense ................................. -- 0.1 -- 0.1
Other expense (income), net ...................... -- 0.1 0.1 --
Minority interest ................................ 0.1 -- 0.1 --
--------------- --------------- --------------- ---------------
Income before income taxes ....................... 9.8 8.8 10.3 9.1
Income taxes ..................................... 3.6 3.4 3.8 3.6
--------------- --------------- --------------- ---------------
Net income ............................... 6.2% 5.4% 6.5% 5.6%
=============== =============== =============== ===============
</Table>
(1) As a percentage of Company bakery-cafe sales.
(2) As a percentage of commissary sales to franchisees.
4