Panera Bread Company 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 percent 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 percent and 43 percent, respectively, for the 12 weeks ended July 13, 2002, compared to the 12 weeks ended July 14, 2001.System-wide comparable bakery-cafe sales (excluding the one specialty bakery-cafe and closed locations) increased 6.7 percent for the 12 weeks ended July 13, 2002 (4.6 percent for company-owned and 7.8 percent 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.
Ron Shaich, chairman and chief executive officer, commented, “We are very pleased with our record second quarter results. Our 63 percent 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.”
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.
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 percent increase over the same period in the prior year.
Business Outlook
The company continues to target full year fiscal 2002 earnings per share of $0.70, which represents a 52 percent 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 three percent to four percent 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 21franchised) 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 percent increase over the 2002 earnings per share target.
