Panera Bread 2003 Annual Report Download - page 23

approximately $0.1 million), or $.01 per diluted share. For further information, see Note 2, ""Summary of
SigniÑcant Accounting Policies,'' in the Notes to the Consolidated Financial Statements.
Net Income
Net income for the Ñfty-two weeks ended December 27, 2003 increased $8.6 million, or 39.7%, to
$30.4 million, or $1.00 per diluted share, compared to net income of $21.8 million, or $0.73 per diluted share,
for the Ñfty-two weeks ended December 28, 2002. The increase in net income in 2003 is consistent with the
factors described above.
Fiscal Year 2002 Compared to Fiscal Year 2001
Results of Operations
Revenues
Total Company revenues for the Ñfty-two weeks ended December 28, 2002 increased 38.1% to
$277.8 million compared to $201.1 million for the Ñfty-two weeks ended December 29, 2001. The growth in
total revenues for the Ñfty-two weeks ended December 28, 2002, as compared to the prior year is primarily due
to the impact of a full year's operation of the 109 system-wide bakery-cafes opened in 2001, the opening of
115 new bakery-cafes in 2002, and the 5.5% increase in system-wide comparable bakery-cafe sales impact on
bakery-cafe sales and royalties from franchisees.
Bakery-cafe sales for the Ñfty-two weeks ended December 28, 2002 for the Company increased 34.8% to
$212.6 million from $157.7 million for the Ñfty-two weeks ended December 29, 2001. The increase in bakery-
cafe sales is primarily due to the impact of a full year's operations of the 21 bakery-cafes opened in 2001, the
opening of 23 new Company-owned bakery-cafes in 2002, and the 4.1% increase in comparable bakery-cafe
sales for the Ñfty-two weeks ended December 28, 2002. The average weekly sales per Company-owned
bakery-cafe (excluding the specialty bakery-cafes and closed locations) and the related number of operating
weeks for the Ñfty-two weeks ended December 28, 2002 and December 29, 2001 are as follows:
For the Ñfty-two weeks ended
December 28, December 29,
2002 2001
Company-owned average weekly sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $33,924 $31,460
Company-owned number of operating weeks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,265 4,984
During the Ñfty-two weeks ended December 28, 2002, Ñve Panera Bread franchise area development
agreements were signed, representing a commitment to develop 75 bakery-cafes and there were amendments
to three existing area development agreements to add 12 additional bakery-cafes. This brings the commit-
ments to develop franchised bakery-cafes, in addition to those already open, to 491 bakery-cafes as of
December 28, 2002. 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 Ñve to six
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 terminate the
ADA and develop Company-owned locations or develop locations through new area developers in that market.
Franchise royalties and fees rose 42.3% for the Ñfty-two weeks ended December 28, 2002 to $27.9 million
from $19.6 million for the Ñfty-two weeks ended December 29, 2001. The components of franchise royalties
and fees are as follows:
For the Ñfty-two weeks ended
December 28, December 29,
2002 2001
Franchise Fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3,200 $ 2,739
Franchise Royalties ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24,692 16,838
TotalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $27,892 $19,577
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