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Panera Bread Company Reports Operating Results (10-Q)

October 31, 2011 | About:
10qk

10qk

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Panera Bread Company (PNRA) filed Quarterly Report for the period ended 2011-09-27.

Panera Bread Company has a market cap of $4.08 billion; its shares were traded at around $133.96 with a P/E ratio of 30.1 and P/S ratio of 2.64. 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.
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 September 27, 2011, we earned $0.97 per diluted share with the following performance on key metrics: system-wide comparable net bakery-cafe sales grew 4.4 percent compared to the thirteen weeks ended September 28, 2010 (growth of 6.0 percent for Company-owned bakery-cafes and growth of 3.1 percent for franchise-operated bakery-cafes); system-wide average weekly net sales increased 3.6 percent to $43,337 ($43,148 for Company-owned bakery-cafes and $43,508 for franchise-operated bakery-cafes); and 25 new bakery-cafes opened system-wide (eight Company-owned bakery-cafes and 17 franchise-operated bakery-cafes) and 14 franchise-operated bakery-cafes closed, which included the de-identification of 13 Paradise franchise-operated bakery cafes, as described in Note 2. Our results for the thirteen weeks ended September 27, 2011 of $0.97 per diluted share included a favorable impact of $0.01 per diluted share from the repurchase of 850,400 shares under our $600 million share repurchase authorization. Additionally, during the third quarter of fiscal 2011, we acquired five bakery-cafes in the Indiana market from a franchisee, as described in Note 2.

For the thirty-nine weeks ended September 27, 2011, we earned $3.24 per diluted share with the following performance on key metrics: system-wide comparable net bakery-cafe sales grew 3.9 percent compared to the thirty-nine weeks ended September 28, 2010 (growth of 4.6 percent for Company-owned bakery-cafes and growth of 3.4 percent for franchise-operated bakery-cafes); system-wide average weekly net sales increased 3.2 percent to $43,569 ($43,274 for Company-owned bakery-cafes and $43,825 for franchise-operated bakery-cafes); 72 new bakery-cafes opened system-wide (29 Company-owned bakery-cafes and 43 franchise-operated bakery-cafes); and 21 bakery-cafes closed system-wide (three Company-owned bakery-cafe and 18 franchise-operated bakery-cafe). The 18 franchise-operated bakery-cafes closed included the de-identification of 13 Paradise franchise-operated bakery-cafes, as described in Note 2. Our results for the thirty-nine weeks ended September 27, 2011 of $3.24 per diluted share included a favorable impact of $0.01 per diluted share from the repurchase of 850,400 shares under our $600 million share repurchase authorization. Additionally, during the thirty-nine weeks ended September 27, 2011, we acquired 25 bakery-cafes in the Milwaukee market and five bakery-cafes in the Indiana market from franchisees, as described in Note 2.

For the thirty-nine weeks ended September 28, 2010, we earned $2.42 per diluted share with the following performance on key metrics: system-wide comparable bakery-cafe sales grew 8.8 percent compared to the thirty-nine weeks ended September 29, 2009 (growth of 8.3 percent for Company-owned bakery-cafes and growth of 9.1 percent for franchise-operated bakery-cafes); system-wide average weekly sales increased 8.1 percent to $42,210 ($41,121 for Company-owned bakery-cafes and $43,016 for franchise-operated bakery-cafes); 43 new bakery-cafes opened system-wide (21 Company-owned bakery-cafes and 22 franchise-operated bakery-cafes); and two bakery-cafes closed system-wide (one Company-owned bakery-cafe and one franchise-operated bakery-cafe). Our results for thirty-nine weeks ended September 28, 2010 of $2.42 per diluted share included a favorable impact of $0.04 per diluted share from the repurchase of 1,905,540 shares under our $600 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.

The cost of food and paper products was $119.5 million, or 30.1 percent of net bakery-cafe sales, for the thirteen weeks ended September 27, 2011 compared to $89.9 million, or 28.5 percent of net bakery-cafe sales, for the thirteen weeks ended September 28, 2010. The cost of food and paper products was $343.0 million, or 29.6 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 27, 2011 compared to $270.9 million, or 28.5 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 28, 2010. This increase in the cost of food and paper products as a percentage of net bakery-cafe sales for the thirteen and thirty-nine weeks ended September 27, 2011 compared to the same periods in 2010 was primarily due to food cost inflation, partially offset by improved leverage of our fresh dough manufacturing costs due to additional bakery-cafe openings and improved leverage from higher comparable net bakery-cafe sales. For the thirteen and thirty-nine weeks ended September 27, 2011, there was an average of 70.1 and 68.9 bakery-cafes per fresh dough facility compared to an average of 65.4 and 64.8 for the thirteen and thirty-nine weeks ended September 28, 2010, respectively.

Other operating expenses were $55.3 million, or 13.9 percent of net bakery-cafe sales, for the thirteen weeks ended September 27, 2011 compared to $45.8 million, or 14.5 percent of net bakery-cafe sales, for the thirteen weeks ended September 28, 2010. Other operating expenses were $157.4 million, or 13.6 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 27, 2011 compared to $129.2 million, or 13.6 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 28, 2010. The decrease in other operating expenses as a percentage of net bakery-cafe sales for the thirteen weeks ended September 27, 2011 compared to the same period in 2010 was primarily a result of increased leverage from higher comparable net bakery-cafe sales, partially offset by increased marketing expense, utilities expense, and immaterial items.

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10qk
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