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Panera Bread Company Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Panera Bread Company (PNRA) filed Quarterly Report for the period ended 2010-06-29.

Panera Bread Company has a market cap of $2.42 billion; its shares were traded at around $75.92 with a P/E ratio of 23.2 and P/S ratio of 1.8. Panera Bread Company had an annual average earning growth of 26.3% over the past 10 years. GuruFocus rated Panera Bread Company the business predictability rank of 4-star.PNRA is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates.
This is the annual revenues and earnings per share of PNRA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PNRA.


Highlight of Business Operations:

For the thirteen weeks ended June 29, 2010, we earned $0.85 per diluted share with the following performance on key metrics: system-wide comparable bakery-cafe sales grew 9.9 percent compared to the thirteen weeks ended June 30, 2009 (growth of 9.6 percent for Company-owned bakery-cafes and growth of 10.1 percent for franchise-operated bakery-cafes); system-wide average weekly sales increased 9.2 percent to $42,903 ($41,940 for Company-owned bakery-cafes and $43,615 for franchise-operated bakery-cafes); and 13 new bakery-cafes opened system-wide (eight Company-owned bakery-cafes and five franchise-operated bakery-cafes); and two bakery-cafes closed system-wide (one Company-owned bakery-cafe and one franchise-operated bakery-cafe). Additionally, during the second quarter of fiscal 2010, the Company sold three bakery-cafes in its Mobile, Alabama market to an existing franchisee and acquired a majority interest in three bakery-cafes in the Ontario, Canada market from a franchisee, as described in Note 2. Our results for the thirteen weeks ended June 29, 2010 of $0.85 per diluted share included a favorable impact of $0.01 per diluted share from the repurchase of 897,556 shares under its $600.0 million share repurchase authorization. This favorable impact was offset by the negative impact of $0.05 per diluted share related to an on-going unclaimed property audit.

For the thirteen weeks ended June 30, 2009, we earned $0.65 per diluted share with the following performance on key metrics: system-wide comparable bakery-cafe sales declined 0.4 percent compared to the thirteen weeks ended June 24, 2008 (decline of 0.6 percent for Company-owned bakery-cafes and decline of 0.3 percent for franchise-operated bakery-cafes); system-wide average weekly sales decreased 1.1 percent to $39,283 ($38,492 for Company-owned bakery-cafes and $39,859 for franchise-operated bakery-cafes); 14 new bakery-cafes opened system-wide (four Company-owned bakery-cafes and ten franchise-operated bakery-cafes); and four bakery-cafes closed system-wide (two Company-owned bakery-cafes and two franchise-operated bakery-cafes). Our results for the thirteen weeks ended June 30, 2009 of $0.65 per diluted share were negatively impacted by the unfavorable year-over-year shift in the Easter holiday from March 2008 to April 2009 and also included a $0.02 per diluted share charge to increase reserves for certain state sales tax audit exposures and a $0.02 per diluted share charge for the write-off of smallwares related to the rollout of new china.

For the twenty-six weeks ended June 29, 2010, we earned $1.67 per diluted share with the following performance on key metrics: system-wide comparable bakery-cafe sales grew 9.7 percent compared to the twenty-six weeks ended June 30, 2009 (growth of 9.8 percent for Company-owned bakery-cafes and growth of 9.7 percent for franchise-operated bakery-cafes); system-wide average weekly sales increased 9.2 percent to $42,428 ($41,492 for Company-owned bakery-cafes and $43,120 for franchise-operated bakery-cafes); 21 new bakery-cafes opened system-wide (11 Company-owned bakery-cafes and 10 franchise-operated bakery-cafes); and two bakery-cafes closed system-wide (one Company-owned bakery-cafe and one franchise-operated bakery-cafe). Additionally, during the twenty-six weeks ended June 29, 2010, the Company sold three bakery-cafes in its Mobile, Alabama market to an existing franchisee and acquired a majority interest in three bakery-cafes in the Ontario, Canada market from a franchisee, as described in Note 2. Our results for twenty-six weeks ended June 29, 2010 of $1.67 per diluted share included a favorable impact of $0.01 per diluted share from the repurchase of 897,556 shares under its $600.0 million share repurchase authorization. This favorable impact was offset by the negative impact of $0.05 per diluted share related to an on-going unclaimed property audit.

For the twenty-six weeks ended June 30, 2009, we earned $1.21 per diluted share with the following performance on key metrics: system-wide comparable bakery-cafe sales growth of 0.1 percent compared to the twenty-six weeks ended June 24, 2008 (decline of 0.5 percent for Company-owned bakery-cafes and growth of 0.3 percent for franchise-operated bakery-cafes); system-wide average weekly sales decreased 0.6 percent to $38,855 ($37,936 for Company-owned bakery-cafes and $39,527 for franchise-operated bakery-cafes); 28 new bakery-cafes opened system-wide (eight Company-owned bakery-cafes and 20 franchise-operated bakery-cafes); and eight bakery-cafes closed system-wide (four Company-owned bakery-cafes and four franchise-operated bakery-cafes). Our results for the twenty-six weeks ended June 30, 2009 of $1.21 per diluted share included a $0.02 per diluted share charge to increase reserves for certain state sales tax audit exposures and a $0.02 per diluted share charge for the write-off of smallwares related to the introduction of new china.

Bakery-cafe sales for the thirteen weeks ended June 29, 2010 increased 14.5 percent to $322.4 million compared to $281.6 million for the thirteen weeks ended June 30, 2009. The increase in bakery-cafe sales for the thirteen weeks ended June 29, 2010 compared to the same period in 2009 was primarily due to the opening of 33 new Company-owned bakery-cafes since June 30, 2009 and to the 9.6 percent increase in Company-owned comparable bakery-cafe sales for the thirteen weeks ended June 29, 2010. This 9.6 percent growth in comparable bakery-cafe sales was driven by approximately 1.9 percent of transaction growth and approximately 7.7 percent average check growth. Average check growth, in turn, was comprised of retail price increases of approximately 2.5 percent and positive mix impact of approximately 5.2 percent in comparison to the same period in the prior year. In total, Company-owned bakery-cafe sales as a percentage of total revenues increased to 85.3 percent for the thirteen weeks ended June 29, 2010 as compared to 85.1 percent for the same period in 2009. In addition, the increase in average weekly sales for Company-owned bakery-cafes for the thirteen weeks ended June 29, 2010 compared to the same period in 2009 was due to an increase in transactions and average check growth. The average weekly sales per Company-owned bakery-cafe and the number of operating weeks for the periods indicated were as follows:

Bakery-cafe sales for the twenty-six weeks ended June 29, 2010 increased 14.5 percent to $634.9 million compared to $554.5 million for the twenty-six weeks ended June 30, 2009. The increase in bakery-cafe sales for the twenty-six weeks ended June 29, 2010 compared to the same period in 2009 was primarily due to the opening of 33 new Company-owned bakery-cafes since June 30, 2009, and the 9.8 percent increase in comparable Company-owned bakery-cafe sales for the twenty-six weeks ended June 29, 2010. This 9.8 percent increase in comparable bakery-cafe sales was driven by approximately 2.7 percent of transaction growth and approximately 7.1 percent average check growth. Average check growth, in turn, was comprised of retail price increases of approximately 2.0 percent and positive mix impact of approximately 5.1 percent in comparison to the same period in the prior year. In total, Company-owned bakery-cafe sales as a percentage of total revenues increased by 0.4 percentage points to 85.5 percent for the twenty-six weeks ended June 29, 2010 as compared to 85.1 percent for the same period in 2009. In addition, the increase in average weekly sales for Company-owned bakery-cafes for the twenty-six weeks ended June 29, 2010 compared to the same period in 2009 was due to an increase in transactions and average check growth. The average weekly sales per Company-owned bakery-cafe and the number of operating weeks for the periods indicated were as follows:

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