Panera Bread 2006 Annual Report Download - page 6

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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 or other periodic reports are
made only as of the date made 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 26, 2006, we operated, directly and through area development agreements with 41 franchisee
groups, bakery-cafes under the Panera Bread»and Saint Louis Bread Co.»names. Bakery-cafes are principally
located in suburban, strip mall, and regional mall locations and currently operate in 38 states. With our identity
rooted in handcrafted, fresh-baked, artisan bread, we are committed to providing great tasting, quality food that
people can trust. Highlighted by antibiotic free chicken, whole grain bread, select organic and all-natural
ingredients and a menu free of man-made trans fat, our bakery-cafe selection offers flavorful, wholesome offerings.
The menu includes a wide variety of year-round favorites, complemented by new items introduced seasonally with
the goal of creating new standards in everyday food choices. In neighborhoods across the country, guests are
enjoying our warm and welcoming environment featuring comfortable gathering areas, relaxing decor, and free
Internet access provided through a managed WiFi network. At the close of each day, our bakery-cafes donate bread
and baked goods to community organizations in need.
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 17 of our Consolidated Financial Statements
for segment information. As of December 26, 2006, our retail operations consisted of 391 Company-owned bakery-
cafes, all in the United States. As of December 26, 2006, our fresh dough operations, which supply fresh dough
items daily to both Company-owned and franchise-operated bakery-cafes, consisted of 18 Company-owned fresh
dough facilities. Our revenues were $829.0 million for the fiscal year ended December 26, 2006, consisting of
$666.1 million of bakery-cafe sales, $61.5 million of franchise royalties and fees, and $101.3 million of fresh dough
sales to franchisees. Franchise-operated bakery-cafe sales were $1,245.5 million for the fiscal year ended
December 26, 2006.
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