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Panera Bread Company Reports Operating Results (10-Q)

October 24, 2012 | About:
10qk

10qk

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Panera Bread Company (PNRA) filed Quarterly Report for the period ended 2012-09-25.

Panera Bread Co has a market cap of $4.8 billion; its shares were traded at around $168.28 with a P/E ratio of 30.6 and P/S ratio of 2.6. Panera Bread Co had an annual average earning growth of 22.1% over the past 10 years. GuruFocus rated Panera Bread Co the business predictability rank of 4-star.

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 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. 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 $600.0 million share repurchase authorization. Additionally, during the thirteen weeks ended September 27, 2011, we acquired five bakery-cafes in the Indiana market from a franchisee, as described in Note 2 in the accompanying consolidated financial statements.

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 June 29, 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-cafes and 18 franchise-operated bakery-cafes). 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 $600.0 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 in the accompanying consolidated financial statements.

The cost of food and paper products was $139.3 million, or 29.9 percent of net bakery-cafe sales, for the thirteen weeks ended September 25, 2012 compared to $119.5 million, or 30.1 percent of net bakery-cafe sales, for the thirteen weeks ended September 27, 2011. The cost of food and paper products was $404.8 million, or 29.5 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 25, 2012 compared to $343.0 million, or 29.6 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 27, 2011. This decrease 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 25, 2012 compared to the same periods in fiscal 2011 was primarily due to leverage on menu pricing and cost of ingredients. In addition, for the thirteen and thirty-nine weeks ended September 25, 2012, there was an average of 76 and 74 bakery-cafes per fresh dough facility compared to an average of 70 and 69 as of September 27, 2011, respectively.

Other operating expenses were $65.9 million, or 14.1 percent of net bakery-cafe sales, for the thirteen weeks ended September 25, 2012 compared to $55.3 million, or 13.9 percent of net bakery-cafe sales, for the thirteen weeks ended September 27, 2011. Other operating expenses were $187.6 million, or 13.6 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 25, 2012 compared to $157.4 million, or 13.6 percent of net bakery-cafe sales, for the thirty-nine weeks ended September 27, 2011. The increase in other operating expenses as a percentage of net bakery-cafe sales for the thirteen weeks ended September 25, 2012 compared to the same period in fiscal 2011 was primarily a result of increased marketing expense, partially offset by leverage from higher comparable net bakery-cafe sales.

Other (income) expense, net was $0.7 million of expense, or 0.1 percent of total revenues, for the thirteen weeks ended September 25, 2012 compared to $0.8 million of expense, or 0.2 percent of total revenues, for the thirteen weeks ended September 27, 2011. Other (income) expense, net was $1.4 million of expense, or 0.1 percent of total revenues, for the thirty-nine weeks ended September 25, 2012 compared to $0.1 million of income, or less than 0.1 percent of total revenues, for the thirty-nine weeks ended September 27, 2011. Other (income) expense, net for the thirteen and thirty-nine weeks ended September 25, 2012 and September 27, 2011 was comprised of immaterial items.

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