Panera Bread 2005 Annual Report Download - page 8

2
Forward-Looking Statements
Matters discussed in this report and in our public disclosures, whether written or oral, relating to future events or our future
performance, including any discussion, express or implied, of our anticipated growth, operating results, future earnings per share,
plans and objectives, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These statements are often identified by the words “believe”, “positioned”, “estimate”,
“project”, “target”, “continue”, “intend”, “expect”, “future”, “anticipates”, and similar expressions that are not statements of historical
fact. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are
difficult to predict. Our actual results and timing of certain events could differ materially from those anticipated in these forward-
looking statements as a result of certain factors, including, but not limited to, those set forth under “Risk Factors” and elsewhere in
this report and in our other public filings with the Securities and Exchange Commission. It is routine for internal projections and
expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that all forward-
looking statements and the internal projections and beliefs upon which we base our expectations included in this report are made only
as of the date of this report and may change. While we may elect to update forward-looking statements at some point in the future, we
do not undertake any obligation to update any forward-looking statements whether as a result of new information, future events or
otherwise.
PART I
ITEM 1. BUSINESS
GENERAL
Panera Bread Company (including its wholly owned subsidiaries) may be referred to as the “Company,” “Panera Bread” or in the
first person notation of “we,” “us,” and “ours” in the following discussion.
As of December 27, 2005, we operated, directly and through area development agreements with 41 franchisee groups, bakery-
cafes under the names Panera Bread® and Saint Louis Bread Co.® Bakery-cafes are principally located in suburban, strip mall, and
regional mall locations and currently operate in 36 states. We specialize in meeting consumer dining needs by providing high quality
food, including fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads, custom roasted coffees, and
other cafe beverages, and targets suburban dwellers and workers by offering a premium specialty bakery and cafe experience with a
neighborhood emphasis. We operate as three business segments, the Company-owned bakery-cafe operations segment, the franchise
operations segment, and the fresh dough operations segment. See Note 15 of our Consolidated Financial Statements for segment
information. As of December 27, 2005, our retail operations consisted of 311 Company-owned bakery-cafes, all in the United States.
As of December 27, 2005, our fresh dough operations, which supply fresh dough items daily to both Company-owned and franchise-
operated bakery-cafes, consisted of 16 Company-owned fresh dough facilities. Our revenues were $640.3 million for the fiscal year
ended December 27, 2005, consisting of $499.4 million of bakery-cafe sales, $54.3 million of franchise royalties and fees, and $86.5
million of fresh dough sales to franchisees. Franchise-operated bakery-cafe sales were $1,097.2 million for the fiscal year ended
December 27, 2005.