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Panera Bread Company Reports Operating Results (10-Q)

May 04, 2011 | About:
10qk

10qk

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Panera Bread Company (PNRA) filed Quarterly Report for the period ended 2011-03-29.

Panera Bread Company has a market cap of $3.69 billion; its shares were traded at around $117.2 with a P/E ratio of 30.1 and P/S ratio of 2.4. Panera Bread Company had an annual average earning growth of 22.5% over the past 10 years. GuruFocus rated Panera Bread Company the business predictability rank of 4-star.

Highlight of Business Operations:

For the thirteen weeks ended March 29, 2011, we earned $1.09 per diluted share with the following performance on key metrics: system-wide comparable net bakery-cafe sales grew 3.3 percent compared to the thirteen weeks ended March 30, 2010 (growth of 3.3 percent for Company-owned bakery-cafes and growth of 3.4 percent for franchise-operated bakery-cafes); system-wide average weekly net sales increased 2.7 percent to $43,096 ($42,532 for Company-owned bakery-cafes and $43,568 for franchise-operated bakery-cafes); and 19 new bakery-cafes opened system-wide (eight Company-owned bakery-cafes and 11 franchise-operated bakery-cafes).

For the thirteen weeks ended March 30, 2010, we earned $0.82 per diluted share with the following performance on key metrics: system-wide comparable net bakery-cafe sales grew 9.5 percent (10.0 percent for Company-owned bakery-cafes and 9.2 percent for franchise-operated bakery-cafes); system-wide average weekly net sales increased 9.2 percent to $41,948 ($41,040 for Company-owned bakery-cafes and $42,620 for franchise-operated bakery-cafes); and eight new bakery-cafes opened system-wide (three Company-owned bakery-cafes and five franchise-operated bakery-cafes).

Fresh dough and other product sales to franchisees for the thirteen weeks ended March 29, 2011 increased 10.0 percent to $33.9 million compared to $30.8 million for the thirteen weeks ended March 30, 2010. The increase in fresh dough and other product sales to franchisees for the thirteen weeks ended March 29, 2011 was primarily driven by the previously described increased number of franchise-operated bakery-cafes opened since March 30, 2010, the 3.4 percent increase in franchise-operated comparable net bakery-cafe sales, and increased produce distribution program sales, partially offset by the closure of three franchise-operated bakery-cafes and the Companys purchase of 40 franchise-operated bakery-cafes since March 30, 2010.

Cash and cash equivalents were $250.7 million at March 29, 2011 compared with $229.3 million at December 28, 2010. This increase was primarily a result of $43.0 million of cash generated from operations partially offset by $22.7 million used on capital expenditures during the thirteen weeks ended March 29, 2011. Our primary source of liquidity is cash provided by operations, although we have the ability to borrow under a credit facility, as described below. Historically, our principal requirements for cash have primarily resulted from the cost of food and paper products, employee labor, and our capital expenditures for the development of new Company-owned bakery-cafes, for maintaining or remodeling existing Company-owned bakery-cafes, for purchasing existing franchise-operated bakery-cafes or ownership interests in other restaurant or bakery-cafe concepts, for developing, maintaining, or remodeling fresh dough facilities, and for other capital needs such as enhancements to information systems and other infrastructure.

We had working capital of $155.9 million at March 29, 2011 compared to $119.2 million at December 28, 2010. The increase in working capital from December 28, 2010 to March 29, 2011 resulted primarily from the previously described increase in cash and cash equivalents of $21.4 million and a decrease in accrued expenses of $18.0 million. We believe that cash provided by our operations and available borrowings under our existing credit facility will be sufficient to fund our cash requirements for the foreseeable future.

Financing activities for the thirteen weeks ended March 29, 2011 included $0.6 million received from the tax benefit from exercise of stock options, $0.5 million received from the exercise of employee stock options under employee benefit plans, and $0.5 million received from the issuance of common stock, offset by $0.7 million used to repurchase shares of our Class A common stock. Financing activities for the thirteen weeks ended March 30, 2010 included $10.1 million received from the exercise of employee stock options, $2.8 million received from the tax benefit from the exercise of stock options, $0.5 million received from the issuance of common stock under employee benefit plans, and $0.1 million used to repurchase s

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