Panera Bread Company (Nasdaq: PNRA) today
reported that net income for the twelve weeks ended July 14, 2001 rose 70% to $2,354,000 or
$0.16 per diluted share from $1,384,000 (excluding the one-time, pre-tax gain of $900,000 related
to the sale of the Au Bon Pain Business Unit) or $0.11 per diluted share for the twelve weeks
ended July 8, 2000. For the twenty-eight weeks ended July 14, 2001 net income was $5,414,000
or $0.38 per diluted share. This represents an 87% increase compared to net income of
$2,899,000 (excluding the one-time gain related to the sale of the Au Bon Pain Business Unit) or
$0.23 per diluted share for the twenty-eight weeks ended July 8, 2000.

System-wide sales increased 56% to $115.1 million for the twelve weeks ended July 14, 2001
compared to the twelve weeks ended July 8, 2000. For the twenty-eight weeks ended July 14,
2001, system-wide sales increased 57% to $254.8 million compared to the same period in the
prior year.

System-wide comparable bakery-cafe sales increased 5.7% for the twelve weeks ended July 14,
2001 (5.8% for company-owned and 5.6% for franchised bakery-cafes). This marks the 22nd
consecutive quarter that Panera Bread (on a stand-alone basis) has reported positive
comparable company bakery-cafe sales. For the twenty-eight weeks ended July 14, 2001,
system-wide comparable bakery-cafe sales increased 6.6% (6.6% for company-owned and 6.5%
for franchised bakery-cafes).

During the twelve weeks ended July 14, 2001, 24 new Panera Bread bakery- cafes were opened
(four company-owned and 20 franchised bakery-cafes). For the twenty-eight weeks ended July 14,
2001, a total of 49 new bakery-cafes have opened (nine company-owned and 40 franchised
bakery-cafes). These 49 bakery-cafes have averaged weekly sales of $37,281 for the twenty-eight
weeks ended July 14, 2001. These weekly volume levels equate to an annualized sales volume of
$1.9 million. This brings the total number of Panera Bread bakery- cafes operating at the end of
the second quarter to 309 (98 company-owned and 211 franchised bakery-cafes). One new
franchise area development agreement for 10 bakery-cafes was signed in the second quarter
bringing the total number of active additional franchise commitments to 541 as of July 14, 2001.

Average weekly system-wide sales for the twelve weeks ended July 14, 2001 were $32,590 per
week (excluding the three specialty bakery-cafes). This equates to an annualized sales volume of $1,695,000. This is an 8.0%
increase over the $30,185 average per week (excluding the four specialty bakery-cafes) for the twelve weeks ended July 8, 2000,
which equates to an annualized sales volume of $1,570,000. For the twenty-eight weeks ended July 14, 2001 average system-wide
weekly sales were $32,445 ($1,687,000 annualized). This is a 9.7% increase over the $29,581 average weekly sales ($1,538,000
annualized) for the twenty-eight weeks ended July 8, 2000.

Ron Shaich, chairman and chief executive officer commented, “We are very pleased with our second quarter. Earnings per diluted
share of $0.16 again exceeded our expectations. The 49 bakery-cafes opened so far this year have produced average bakery-cafe
sales volumes of $1.9 million, which is well ahead of our projections. This, along with strong comparable sales, has driven up our
average annualized system-wide sales to almost $1.7 million. We believe these average unit volumes are among the highest in our
industry, outside of casual dining, and speak to the strength of our concept, the opportunities for further development, and the potential
of continued earnings expansion.”

Shaich concluded, “Our strong sales volumes and unit level returns are fueling accelerated company and franchise development.
Based on the 49 bakery-cafes opened so far this year and our development pipeline, we are raising our development target for the
remainder of 2001. We are now targeting 92 bakery-cafes for the full year (17 company-owned and 75 franchised bakery-cafes). We
recognize opening additional company-owned bakery-cafes late this year will have a modestly negative impact on 2001 results.
Despite the negative impact of these openings and the continued elevated cost of butter, we are, based on the strength of our opening
volumes, again raising our earnings per share target for 2001. We are now targeting full year 2001 earnings per share of $0.86, which
represents a 65% increase over 2000. Our quarterly targets for the remainder of 2001 include a $0.19 earnings per share target in the
third quarter and a $0.29 earnings per share target in the fourth quarter. In addition, we are today announcing a 2002 development
target of 100 bakery-cafe openings (20 company-owned and 80 franchised bakery-cafes). Consistent with our expanded development
targets for 2001 and 2002 we are now raising our 2002 earnings per share target to $1.16 which represents a 35% increase over the
2001 target.”