Milling & Baking News Corporate Profiles - October 2011 - (Page 108)

Company Overview Panera Bread Co. Earnings surge continues amid menu innovation aving survived the low-carbohydrate trend at the start of this century, Panera Bread Co. continues to make earnings gains in the current stalled economy. Menu innovation, such as steak sandwiches and smoothies, and attention to all daypart opportunities helped fuel income growth in 2011. From 2006 to 2010, fiscal-year earnings at St. Louis-based Panera chronologically came in at $58.9 million, $57.5 million, $67.4 million, $86 million and $111.9 million. For the 52 weeks ended Dec. 28, 2010, net income of $111.9 million, or $3.62 per share, marked a 30% increase from $86 million, or $2.78 per share, in the previous 52-week period. For the 26 weeks ended June 28, 2011, net income of $68.5 million, or $2.27 per share, was up 30% from $52.5 million, or $1.67 per share, in the same time period of the previous year. As of June 28, 2011, the company had 1,493 bakery-cafes, which compared with 1,027 bakery cafes on Dec. 26, 2006. “Our growth was driven by success in all of the businesses that we serve,” said Bill Moreton, president and chief executive officer of Panera Bread Co., in a July 27 earnings conference call. “Breakfast, lunch, H chill, dinner and catering all grew in profitability (in the second quarter) compared to the prior year. This has been true for the last eight consecutive quarters where each of those businesses has grown compared to the year prior.” Hot sandwiches remain a growth platform and a source of innovation for Panera. Last year the company rolled out its Panini Grills sandwiches, which are heated more evenly throughout and allow for custom orders. The menu innovation continued in 2011. In January the company introduced a Thai chopped chicken salad, which has 390 calories and 39 grams of protein, and a low-fat wild berry smoothie, which has less than 300 calories and contains 100% of the Daily Value of vitamins B6 and B12. Panera’s smoothie category was up 45% year-to-date through the first 26 weeks of fiscal 2011, Mr. Moreton said. He added Panera rolled out steak as a new protein in the second quarter and highlighted the steak Panini and steak breakfast sandwich. “Both products performed very well and helped grow our breakfast, lunch and dinner day parts,” Mr. Moreton said. Other planned 2011 innovations included a roasted turkey and artichoke Panini and a steak balsamico Panini. Bill Moreton For 2011, Panera is targeting earnings per share in the range of $4.54 to $4.58, which would be up 25% to 27% from 2010. The company in 2012 expects e.p.s. growth to fall within the long-term guidance of 15% to 20% and new unit growth of 100 to 110 new bakery-cafes. “However, given a couple of factors today, we’d also point to the low end of that range,” said Jeff Kip, senior vice-president and chief financial officer, on July 27. “First, we do continue to expect significant inflationary pressures in 2012, 4% to 5% food inflation, $10 million of unfavorable in wheat costs, which means we don’t expect operating margin much better than flat to full-year 2011 in 2012.” CP F ast acts Panera Bread Co. targeted earnings per share of $4.54 to $4.58 for the 2011 ﬁscal year, up from $3.62 per share in 2010. Menu innovation came in the form of chicken salad, smoothies and steak sandwiches. The company expects signiﬁcant inﬂationary pressures in 2012. 108 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011