Panera Bread 2006 Annual Report Download - page 27

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Results of Operations
Fiscal Year 2006 Compared to Fiscal Year 2005
Revenues
Our total revenues for the fiscal year ended December 26, 2006 increased 29.5% to $829.0 million compared to
$640.3 million for the fiscal year ended December 27, 2005. The growth in total revenues for the fiscal year ended
December 26, 2006, as compared to the prior year, was primarily due to the opening of 155 new bakery-cafes in
2006 (70 Company-owned and 85 franchise-operated) as well as increases in system-wide comparable bakery-cafe
sales of 4.1% for the fiscal year ended December 26, 2006. The system-wide average weekly sales per bakery-cafe
and the related number of operating weeks for the fiscal year ended December 26, 2006 and December 27, 2005
were as follows:
December 26,
2006
December 27,
2005
Percentage
Increase
For the Fiscal Year Ended
System-wide average weekly sales................... $39,150 $38,318 2.2%
System-wide number of operating weeks .............. 48,827 41,370 18.0%
Average weekly sales is calculated by dividing total net sales by operating weeks. Accordingly, year over year
growth reflects sales for all locations, whereas comparable store sales exclude closed locations and are based on
sales for bakery-cafes that have been in operation and owned for at least 18 months. In addition, we had an
additional three days in the first quarter of 2005 as compared to the first quarter of 2006 as a result of changing our
fiscal week in 2005 to end on Tuesday rather than Saturday. Average weekly sales and comparable bakery-cafe sales
exclude these three additional days in the first quarter of 2005 for comparative purposes.
New stores typically experience an opening “honey-moon” whereby they generate higher average weekly sales
during the first 12 to 16 weeks they are open as customers “settle-in” to normal usage patterns from initial trial of the
location. On average the “settle-in” experienced is 5% to 10% from the average weekly sales during the
“honey-moon” period. As a result, year over year growth in average weekly sales is generally lower than the
growth in comparable bakery-cafe sales. This results from the relationship of the number of bakery- cafes in the
“honey-moon” phase, the number of bakery-cafes in the “settle-in” phase, and the number of stores in the
comparable store base.
Bakery-cafe sales for the fiscal year ended December 26, 2006 for the Company-owned bakery-cafes
increased 33.4% to $666.1 million from $499.4 million for the fiscal year ended December 27, 2005.
Company-owned bakery-cafe sales as a percentage of total revenue increased by 2.4 percentage points for the
fiscal year ended December 26, 2006 compared to the fiscal year ended December 27, 2005, primarily as a result of
the increase in the number of Company-owned bakery-cafe openings. The increase in bakery-cafe sales was
primarily due to the impact of a full year’s operations of the 66 Company-owned bakery-cafes opened in 2005, the
opening of 70 Company-owned bakery-cafes in 2006, and the 3.9% increase in comparable bakery-cafe sales for the
fiscal year ended December 26, 2006. Bakery-cafes included in comparable sales increases and not included in
comparable sales increases contributed 10% and 90%, respectively, of the $166.7 million increase in sales from
2005. The average weekly sales per Company-owned bakery-cafe and the related number of operating weeks for the
fiscal years ended December 26, 2006 and December 27, 2005 were as follows:
December 26,
2006
December 27,
2005
Percentage
Increase
For the Fiscal Year Ended
Company-owned average weekly sales ................ $37,833 $37,348 1.3%
Company-owned number of operating weeks ........... 17,607 13,280 32.6%
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