Panera Bread 2004 Annual Report Download - page 21

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The following table sets forth certain information and other data relating to Company-owned and franchise-operated bakery-cafes:
For the Fiscal Year Ended
December 25,
2004
December 27,
2003
December 28,
2002
Number of bakery-cafes:
Company-owned:
Beginning of period ......................................................................................................... 173 132 110
Bakery-cafes opened........................................................................................................ 54 29 23
Bakery-cafes closed ......................................................................................................... — (3) (4)
Transfer to franchisee(2).................................................................................................. (2) — —
Acquired from franchisee(1)............................................................................................ 1 15 3
End of period.................................................................................................................. 226 173 132
Franchise operated:
Beginning of period ......................................................................................................... 429 346 259
Bakery-cafes opened........................................................................................................ 89 102 92
Bakery-cafes closed ......................................................................................................... (4) (4) (2)
Transfer from Company(2) .............................................................................................. 2 — —
Sold to Company(1)......................................................................................................... (1) (15) (3)
End of period.................................................................................................................. 515 429 346
System-wide:
Beginning of period ......................................................................................................... 602 478 369
Bakery-cafes opened........................................................................................................ 143 131 115
Bakery-cafes closed ......................................................................................................... (4) (7) (6)
End of period.................................................................................................................. 741 602 478
__________
(1) In January 2002, the Company purchased the area development rights and three existing bakery-cafes in the Jacksonville,
Florida market from its franchisee. During fiscal 2003, the Company acquired 15 operating bakery-cafes and the area
development rights in the Louisville/Lexington, Kentucky; Dallas, Texas; Toledo, Ohio; and Ann Arbor, Michigan markets
from franchisees. In October 2004, the Company acquired one operating bakery-cafe in the Dallas, Texas market from a
franchisee.
(2) In October 2004, the Company transferred two operating bakery-cafes and one bakery-cafe under construction to a new
franchisee in the acquisition of the minority interest. See Note 4 of the Company’s Consolidated Financial Statements for
further information.
Increases in comparable bakery-cafe sales for the fifty-two weeks ended December 25, 2004, December 27, 2003, and December
28, 2002 were as follows:
For the Fiscal Year Ended
December 25,
2004
December 27,
2003
December 28,
2002
Company-owned .................................................................................................................. 2.9% 1.7% 4.1%
Franchised ............................................................................................................................ 2.6% -0.4% 6.1%
System-wide ......................................................................................................................... 2.7% 0.2% 5.5%
Comparable bakery-cafe sales exclude closed locations and are based on sales for bakery-cafes that have been in operation for at
least 18 months.
Comparable sales during the fifty-two weeks ended December 25, 2004 increased at a higher rate than comparable sales during the
fifty-two weeks ended December 27, 2003 primarily as a result of sales from the roll-out of the “Via Panera” catering business which
began in 2004, sales from strengthened new product development in 2004, the implementation of several Company initiatives by the
franchised bakery-cafes in 2004 related to increased staffing, quality, and speed of customer service, and price increases. Sales in the
first half of 2004 continued to be negatively impacted by “low carbohydrate” diet trends experienced in the second half of 2003.
Comparable sales increases were lower during the fifty-two weeks ended December 27, 2003 than during the fifty-two weeks
ended December 28, 2002 as a result of several factors. These factors include the more difficult winter weather in the first quarter of
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