Panera Bread 2003 Annual Report Download - page 20

of these initiatives will occur on a trailing basis at franchised bakery-cafes, as the Company initially tests
changes in Company-owned bakery cafes before recommending changes to its franchise partners.
Fiscal Year 2003 Compared to Fiscal Year 2002
Results of Operations
Revenues
Total Company revenues for the Ñfty-two weeks ended December 27, 2003 increased 28.1% to
$355.9 million compared to $277.8 million for the Ñfty-two weeks ended December 28, 2002. The growth in
total revenues for the Ñfty-two weeks ended December 27, 2003, as compared to the prior year, is primarily
due to the opening of 131 new bakery-cafes in 2003 as well as the increase in system-wide average weekly sales
(excluding closed locations) of 0.7% for the Ñfty-two weeks ended December 27, 2003.
Bakery-cafe sales for the Ñfty-two weeks ended December 27, 2003 for the Company increased 25.1% to
$265.9 million from $212.6 million for the Ñfty-two weeks ended December 28, 2002. The increase in bakery-
cafe sales is primarily due to the impact of a full year's operations of the 23 Company bakery-cafes opened in
2002, the opening of 29 Company-owned bakery-cafes in 2003, and the 1.7% increase in comparable bakery-
cafe sales for the Ñfty-two weeks ended December 27, 2003. The average weekly sales per Company-owned
bakery-cafe (excluding closed locations) and the related number of operating weeks for the Ñfty-two weeks
ended December 27, 2003 and December 28, 2002 are as follows:
For the Ñfty-two weeks ended
December 27, December 28,
2003 2002
Company-owned average weekly sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $35,208 $33,924
Company-owned number of operating weeks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,555 6,265
Franchise royalties and fees rose 29.7% to $36.2 million for the Ñfty-two weeks ended December 27, 2003
from $27.9 million for the Ñfty-two weeks ended December 28, 2002. The components of franchise royalties
and fees are as follows (in thousands):
For the Ñfty-two weeks ended
December 27, December 28,
2003 2002
Franchise Fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3,342 $ 3,200
Franchise Royalties ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32,903 24,692
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $36,245 $27,892
The increase in royalty revenue can be attributed to the impact of a full year's operations of the 92
franchised bakery-cafes opened in 2002 and the addition of 102 franchised bakery-cafes in 2003. The average
weekly sales per franchise-operated bakery-cafe (excluding closed locations) and the related number of
operating weeks for the Ñfty-two weeks ended December 27, 2003 and December 28, 2002 are as follows:
For the Ñfty-two weeks ended
December 27, December 28,
2003 2002
Franchise average weekly sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $35,777 $35,997
Franchise number of operating weeks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19,872 15,068
As of December 27, 2003, there were 429 franchised bakery-cafes open and commitments to open 409
additional franchised bakery-cafes. We expect these bakery-cafes to open over the next ten years according to
the timetable established in the area development agreements (ADA), with the majority opening in the next
four to Ñve years. The ADA requires a franchisee to develop a speciÑed number of bakery-cafes on or before
speciÑc dates. If a franchisee fails to develop bakery-cafes on schedule, the Company has the right to
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