Panera Bread Company (NASDAQ:PNRA) filed Annual Report for the period ended 2010-12-28.
Panera Bread Company has a market cap of $3.72 billion; its shares were traded at around $119.43 with a P/E ratio of 32.9 and P/S ratio of 2.41. Panera Bread Company had an annual average earning growth of 26.3% over the past 10 years. GuruFocus rated Panera Bread Company the business predictability rank of 4-star.Hedge Fund Gurus that owns PNRA: Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns PNRA: John Hussman of Hussman Economtrics Advisors, Inc., Ron Baron of Baron Funds, RS Investment Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:As of February 18, 2011, the registrant had 30,074,057 shares of Class A Common Stock ($.0001 par value per share) and 1,391,337 shares of Class B Common Stock ($.0001 par value per share) outstanding.
We operate as three business segments: Company bakery-cafe operations, franchise operations, and fresh dough and other product operations. As of December 28, 2010, our Company bakery-cafe operations segment consisted of 662 Company-owned bakery-cafes, located throughout the United States and in Ontario, Canada, and our franchise operations segment consisted of 791 franchise-operated bakery-cafes, all located in the United States. As of December 28, 2010, our fresh dough and other product operations segment, which supplies fresh dough and other products daily to most Company-owned and franchise-operated bakery-cafes, consisted of 26 fresh dough facilities (22 Company-owned and four franchise-operated). In the fiscal year ended December 28, 2010, or fiscal 2010, our revenues were $1,542.5 million, consisting of $1,321.2 million of Company-owned net bakery-cafe sales, $86.2 million of franchise royalties and fees, and $135.1 million of fresh dough and other product sales to franchisees. Franchise-operated net bakery-cafe sales, as reported by franchisees, were $1,802.1 million in fiscal 2010. See Note 19 to our consolidated financial statements for further segment information.
On November 17, 2009, our Board of Directors approved a three year share repurchase authorization of up to $600.0 million of our Class A common stock, pursuant to which share repurchases may be effected from time to time on the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. Repurchased shares may be retired immediately and resume the status of authorized but unissued shares or may be held by us as treasury stock. This repurchase authorization is reviewed quarterly by our Board of Directors and may be modified, suspended, or discontinued at any time. Since the repurchase authorization was approved, we have repurchased 1,932,969 shares at a weighted-average price of $78.50 for an aggregate purchase price of approximately $152.0 million. We have approximately $448.0 million available under the existing $600.0 million repurchase authorization.
The revenues we receive from a typical ADA include a franchise fee of $35,000 per bakery-cafe (of which we generally receive $5,000 at the signing of the ADA and $30,000 at or before the bakery-cafe opening) and continuing royalties, which are generally 4 percent to 5 percent of net sales per bakery-cafe. Franchise royalties and fees in fiscal 2010 were $86.2 million, or 5.6 percent of our total revenues. Our franchise-operated bakery-cafes follow the same protocol for in-store operating standards, product quality, menu, site selection, and bakery-cafe construction as do Company-owned bakery-cafes. Generally, franchisees are required to purchase all of their fresh dough and other products from sources approved by us. Our fresh dough facility system supplies fresh dough and other products to substantially all franchise-operated bakery-cafes. We do not generally finance franchisee construction or ADA payments. However, in the fiscal year ended December 30, 2008, or fiscal 2008, to facilitate our expansion into Ontario, Canada, we entered into a credit facility with our initial franchisee in that market. See Note 13 to our consolidated financial statements for further information regarding the credit facility with our former Canadian franchisee. From time to time and on a limited basis, we may provide certain development or real estate services to franchisees in exchange for a payment equal to the total costs of the services plus an additional fee. As of December 28, 2010, we did not hold an equity interest in any of our franchise-operated bakery-cafes.
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