Panera Brands announced Tuesday that CEO José Alberto Dueñas has stepped down, yet another shift for the company as it eyes a potential IPO.
CFO Paul Carbone will serve as interim chief executive while the board of directors conducts a search process. Internal and external candidates will be considered. Meanwhile, Dueñas will serve as a special advisor through the end of March. Panera Brands comprises Panera, Einstein Bros. Bagels, and Caribou Coffee.
“I want to thank José for all he has done for Panera, including transforming the menu, improving restaurant-level margins and enhancing organizational agility, all of which have positioned the Company for long-term growth,” board chair Patrick Grismer said in a statement. “Paul is a well-respected industry veteran with a tremendous track record of success, and I look forward to continue working with him as he assumes the role of interim CEO and advances our strategies to further strengthen Panera and ignite new-unit development. Our Board fully supports the current strategic direction of Panera and expects the Company to stay the course on execution.”
Dueñas said in a news release that he was proud of “leading Panera during this transformative period for the Company.”
The move comes about a month and a half after Panera Brands announced Grismer, a former Starbucks CFO, as the new board chair. He replaced former Krispy Kreme CEO Michael Tattersfield, who had been chair for just 10 months. Additionally, the company added ex-Bloomin’ Brands CEO David Deno to the board and made him chair of the audit committee.
Panera Brands, formed in 2021, has reportedly eyed a spot on the stock market for the past several years. Soon after its creation, the fast-casual platform announced plans to go public via a merger with Danny Meyer’s special purpose acquisition company. However, the strategy was shut down due to “deteriorating capital market conditions” ahead of a July 1, 2022 deadline.
Panera Brands revived its plans to file an IPO in May 2023 while also revealing then-CEO Niren Chaudhary would be stepping down and moving to the chairman role. He was succeeded by Dueña, who previously led Einstein Bros. Later in 2023, the group confidentially filed an IPO and intended to reach the stock market in 2024, which didn’t come to pass.
In July, Reuters reported Panera Brands was looking to sell off Caribou and Einstein Bros. The media outlet said Bank of America was running the sales process and that restaurant operators and private equity firms have shown interest in acquiring the chains. According to the publication, Panera wanted a valuation 10 times its EBITDA of $150 million in 2024.
During its march toward an IPO, Panera reportedly laid off 17 percent of its corporate staff, or about 300 employees, in November 2023. It let go of some more employees this past fall as well; Dueñas said this recent change would streamline communication and enable faster and more consistent decision-making, according to an internal memo viewed by the St. Louis Post-Dispatch.
Panera also unveiled its largest menu overhaul in company history during the spring of last year.
Carbone joined Panera Brands as CFO in 2023. He spent nine years at Dunkin’ Brands, including as CFO from 2012 to 2017.
“Panera is the pioneer of fast casual and one of the most iconic and enduring brands in our industry,” Carbone said in a statement. “Over the last year, we have listened to our guests, our team members and our franchisees, and have innovated behind our core product offerings to ensure that Panera continues to be a category leader known for distinctive, high-quality food and an exceptional guest experience. Being a leader in this effort is a tremendous opportunity and I am excited to partner with our management team and franchisees to unlock Panera’s next phase of growth.”
Panera Brands has more than 3,700 company and franchised locations and approximately 120,000 system employees across 11 countries.
