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Panera Bread Company Reports Operating Results (10-Q)

August 03, 2011 | About:
10qk

10qk

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Panera Bread Company (PNRA) filed Quarterly Report for the period ended 2011-06-28.

Panera Bread Company has a market cap of $3.39 billion; its shares were traded at around $111.48 with a P/E ratio of 26.3 and P/S ratio of 2.1. 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 June 28, 2011, we earned $1.18 per diluted share with the following performance on key metrics: system-wide comparable net bakery-cafe sales grew 3.9 percent compared to the thirteen weeks ended June 29, 2010 (growth of 4.4 percent for Company-owned bakery-cafes and growth of 3.6 percent for franchise-operated bakery-cafes); system-wide average weekly net sales increased 3.2 percent to $44,268 ($44,118 for Company-owned bakery-cafes and $44,398 for franchise-operated bakery-cafes); and 28 new bakery-cafes opened system-wide (13 Company-owned bakery-cafes and 15 franchise-operated bakery-cafes) and two franchise-operated bakery-cafes closed. Additionally, during the second quarter of fiscal 2011, we acquired 25 bakery-cafes in the Milwaukee market from a franchisee, as described in Note 2.

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 net 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 net 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, we sold three bakery-cafes in the 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 twenty-six weeks ended June 28, 2011, we earned $2.27 per diluted share with the following performance on key metrics: system-wide comparable net bakery-cafe sales grew 3.7 percent compared to the twenty-six weeks ended June 29, 2010 (growth of 3.8 percent for Company-owned bakery-cafes and growth of 3.5 percent for franchise-operated bakery-cafes); system-wide average weekly net sales increased 3.0 percent to $43,687 ($43,340 for Company-owned bakery-cafes and $43,982 for franchise-operated bakery-cafes); 47 new bakery-cafes opened system-wide (21 Company-owned bakery-cafes and 26 franchise-operated bakery-cafes); and seven bakery-cafes closed system-wide (three Company-owned bakery-cafe and four franchise-operated bakery-cafe). Additionally, during the twenty-six weeks ended June 28, 2011, we acquired 25 bakery-cafes in the Milwaukee market from a franchisee, as described in Note 2.

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 net 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 net 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, we sold three bakery-cafes in the 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 our $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.

Net bakery-cafe sales for the thirteen weeks ended June 28, 2011 increased 22.4 percent to $394.5 million compared to $322.4 million for the thirteen weeks ended June 29, 2010. The increase in net bakery-cafe sales for the thirteen weeks ended June 28, 2011 compared to the same period in 2010 was primarily due to the opening of 52 new Company-owned bakery-cafes, the acquisition of 62 franchise-operated bakery-cafes since June 29, 2010, and the 4.4 percent increase in Company-owned comparable net bakery-cafe sales for the thirteen weeks ended June 28, 2011, partially offset by the closure of four Company-owned bakery-cafes and the sale of two Company-owned bakery-cafes since June 29, 2010. This 4.4 percent growth in comparable net bakery-cafe sales was driven by approximately 2.9 percent of transaction growth and approximately 1.5 percent average check growth. Average check growth, in turn, was comprised of retail price increases of approximately 2.5 percent and negative mix impact of approximately 1.0 percent in comparison to the same period in the prior year. In total, Company-owned net bakery-cafe sales as a percentage of total revenues increased to 87.5 percent for the thirteen weeks ended June 28, 2011 as compared to 85.3 percent for the same period in 2010. The increase in average weekly net sales for Company-owned bakery-cafes for the thirteen weeks ended June 28, 2011 compared to the same period in 2010 was primarily due to an increase in transactions and average check growth. The average weekly net sales per Company-owned bakery-cafe and the number of operating weeks for the periods indicated were as follows:

Franchise royalties and fees for the thirteen weeks ended June 28, 2011 increased 6.4 percent to $23.0 million compared to $21.6 million for the thirteen weeks ended June 29, 2010. The components of franchise royalties and fees for the periods indicated were as follows (in thousands):

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