Panera Bread 2004 Annual Report Download - page 25

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Fiscal Year 2003 (as restated) Compared to Fiscal Year 2002 (as restated)
Results of Operations
Revenues
Total Company revenues for the fifty-two weeks ended December 27, 2003 increased 28.9% to $363.7 million compared to $282.2
million for the fifty-two weeks ended December 28, 2002. The growth in total revenues for the fifty-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 of 0.6% for the fifty-two weeks ended December 27, 2003.
Bakery-cafe sales for the fifty-two weeks ended December 27, 2003 for the Company increased 25.1% to $265.9 million from
$212.6 million for the fifty-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 fifty-two weeks ended December 27, 2003. The average weekly sales per
Company-owned bakery-cafe and the related number of operating weeks for the fifty-two weeks ended December 27, 2003 and
December 28, 2002 are as follows:
For the Fifty-Two Weeks Ended
December 27,
2003
December 28,
2002
Company-owned average weekly sales................................................................................................ $ 35,198 $ 33,940
Company-owned number of operating weeks ...................................................................................... 7,555 6,265
Franchise royalties and fees rose 29.7% to $36.2 million for the fifty-two weeks ended December 27, 2003 from $27.9 million for
the fifty-two weeks ended December 28, 2002. The components of franchise royalties and fees are as follows (in thousands):
For the Fifty-Two Weeks Ended
December 27,
2003
December 28,
2002
Franchise royalties................................................................................................................................ $ 32,903 $ 24,692
Franchise fees ....................................................................................................................................... 3,342 3,200
Total.................................................................................................................................................... $ 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 and the
related number of operating weeks for the fifty-two weeks ended December 27, 2003 and December 28, 2002 are as follows:
For the Fifty-Two Weeks Ended
December 27,
2003
December 28,
2002
Franchisee average weekly sales .......................................................................................................... $ 35,777 $ 35,997
Franchisee number of operating weeks ................................................................................................ 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 ADAs, with
the majority opening in the next four to five years. The ADA requires a franchisee to develop a specified number of bakery-cafes on or
before specific 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.
Fresh dough facility sales to franchisees increased 47.5% to $61.5 million for the fifty-two weeks ended December 27, 2003 from
$41.7 million for the fifty-two weeks ended December 28, 2002. The increase was primarily driven by the increased number of
franchise bakery-cafes opened, as well as a shift in certain product being distributed through the fresh dough facility system rather
than a third party.
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