Milling & Baking News Corporate Profiles - 2014 - 56

Corporate Outlook

Panera Bread Co.
Expansion moves
forward despite
shaky stock prices

E

xpansion is still on the agenda for
Panera Bread Co. even though
the company saw roller-coaster
stock prices in 2004.
Panera, based in Richmond Heights,
Mo., plans 150 to 160 new outlets in
2005. Panera operated 701 bakery cafes
on Oct. 2, the last day of the third quarter of fiscal 2004.
Investors have expressed concern that
the company's slower growth could hurt
earnings. Panera's 2004 stock prices have
ranged from $44 per share in mid-February to $33.50 per share in early August.
In August, the company lowered its
2004 earnings guidance to $1.24 to
$1.28 a share from a range of $1.28
to $1.30 a share. Panera said the adjustment reflects lower-than-expected
improvement on inefficiencies from the
new bakery cafe openings.
Following the third quarter, Panera
narrowed its full-year earnings target to
$1.24 to $1.26 per share.

would criticize as tasteless or spongy.
Panera added six new low-carbohydrate menu items in 2004, including
several varieties of bread, bagels and a
breadstick. Analysts, however, have said

Number of Panera bakery-cafes
Company-owned
Franchise-operated

Total:
602

Total:
478
Total:
369

429
346

259

132

173

2002

2003

110

2001

Year ended Dec. 31

Fast Facts:
Panera plans to add 150 to 160 new
outlets in 2005.
Panera's rate of growth has some
investors concerned.
A new program, Via Panera, takes
fresh products beyond confines of
bakery cafes directly to offices and
large groups.
60

Milling & Baking News

Earnings rise but shares fall
Panera said its earnings in the third
quarter ended Oct. 2 rose 13% to
$6.4 million from $5.7 million in the
same period of 2003. Nevertheless, the
company's shares fell as much as $4.19
to $35.91 per share on Oct. 28, the day
third-quarter results were announced.
Panera established a preliminary
earnings-per-share diluted share target
for 2005 of $1.50 to $1.55, which
would represent an increase of 19% to
25% over the targeted 2004 results.
Panera continues to respond to fad
dieting, saying its goal was not to be
part of the race to bring a low-carbohydrate bread as quickly as possible to the
market. Instead, the company said it decided to experiment as much as possible
to introduce quality low-carbohydrate
bread and not bread that consumers

Baking & Snack Corporate Profiles

December 2004

the low-carbohydrate trend's impact on
Panera probably has peaked.
Long live Via Panera
In September, Panera launched Via
Panera. Through individually boxed
breakfasts and lunches, Via Panera will
provide the full bakery-cafe line to offices and groups. The program, introduced
nationwide, will emphasize service to
create fresh, hand-crafted meals.
"Bringing the full bakery-cafe experience into offsite locations represents a
significant business opportunity for Via
Panera," said Ron Shaich, Panera's chairman and chief executive officer. "Via
Panera provides a premium customer
experience uniquely customized for
groups, which sets us apart from typical
carry-out options."
Milling & Baking News Corporate Profiles - 2014

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