Panera Bread 2006 Annual Report Download - page 30

Fiscal Year 2005 Compared to Fiscal Year 2004
Revenues
Our total revenues for the fiscal year ended December 27, 2005 increased 33.6% to $640.3 million compared to
$479.1 million for the fiscal year ended December 25, 2004. The growth in total revenues for the fiscal year ended
December 27, 2005, as compared to the prior year, was primarily due to the opening of 139 new bakery-cafes in
2005 as well as increases in system-wide comparable bakery-cafe sales of 7.8% for the fiscal year ended
December 27, 2005. The system-wide average weekly sales per bakery-cafe and the related number of operating
weeks for the fiscal year ended December 27, 2005 and December 25, 2004 were as follows:
December 27,
2005
December 25,
2004
Percentage
Increase
For the Fiscal Year Ended
System-wide average weekly sales................... $38,318 $36,008 6.4%
System-wide number of operating weeks .............. 41,370 34,470 20.0%
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.
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.
As described above, we had an additional three days in the first quarter of 2005 as compared to the first quarter
of 2004 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.
Bakery-cafe sales for the fiscal year ended December 27, 2005 for the Company-owned bakery-cafes
increased 37.9% to $499.4 million from $362.1 million for the fiscal year ended December 25, 2004.
Company-owned bakery-cafe sales as a percentage of total revenue increased by 2.4 percentage points for the
fiscal year ended December 27, 2005 compared to the fiscal year ended December 25, 2004, and fresh dough sales
to franchisees as a percentage of total revenue decreased by 1.6 percentage points for the fiscal year ended
December 27, 2005 compared to the fiscal year ended December 25, 2004, 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 54 Company-owned bakery-cafes opened in 2004, the opening of 66
Company-owned bakery-cafes in 2005, and the 7.4% increase in comparable bakery-cafe sales for the fiscal year
ended December 27, 2005. Bakery-cafes included in comparable sales increases and not included in comparable
sales increases contributed 17% and 83%, respectively, of the $137.3 million increase in sales from 2004. The
average weekly sales per Company-owned bakery-cafe and the related number of operating weeks for the fiscal
years ended December 27, 2005 and December 25, 2004 were as follows:
December 27,
2005
December 25,
2004
Percentage
Increase
For the Fiscal Year Ended
Company-owned average weekly sales ................ $37,348 $35,620 4.9%
Company-owned number of operating weeks ........... 13,280 10,166 30.6%
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