Panera Bread 2007 Annual Report Download - page 11

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 and its subsidiaries may be referred to as the “Company,” “Panera Bread” or in the first
person notation of “we,” “us,” and “our” in the following discussion. Further, we use the term “Panera” to refer
specifically to our 1,167 system-wide Panera Bread»and Saint Louis Bread Co.»bakery-cafes, and the term
“Paradise” to refer specifically to the 63 system-wide Paradise Bakery & Café»bakery-cafes.
As of December 25, 2007, Panera operated, directly and through franchise agreements with 39 franchisee
groups, 1,167 bakery-cafes (501 Company-owned and 666 franchise-operated bakery-cafes). During fiscal year
2007, Panera opened 148 bakery-cafes system-wide (79 Company-owned and 69 franchise-operated bakery-cafes),
acquired 36 bakery-cafes from its franchisees, closed eight bakery-cafes system-wide (four Company-owned and
four franchise-operated bakery-cafes), and sold one Company-owned bakery-cafe to a franchisee. Panera bakery-
cafes are principally located in suburban, strip mall, and regional mall locations and currently operate in 38 states.
With its identity rooted in handcrafted, fresh-baked, artisan bread, Panera is 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, Panera’s bakery-cafe selection provides flavorful,
wholesome offerings. Panera’s 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 enjoy Panera’s 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, Panera
bakery-cafes donate bread and baked goods to community organizations in need.
On February 1, 2007, we purchased 51 percent of the outstanding capital stock of Paradise, which at that time
operated 22 company-owned bakery-cafes and one commissary and 22 franchise-operated bakery-cafes and one
commissary. We have the right to purchase the remaining 49 percent of the outstanding capital stock of Paradise
after January 1, 2009 at a contractually determined value. Also, if we have not exercised our right to purchase the
remaining 49 percent of the outstanding capital stock of Paradise, the remaining Paradise owners have the right to
purchase our 51 percent ownership interest in Paradise after June 30, 2009 at a contractually determined value.
Paradise owns and franchises bakery-cafes which feature freshly baked products, such as cookies, muffins and
croissants, along with gourmet and specialty coffees, as well as sandwiches, soups, salads, beverages and other
items. As of December 25, 2007, Paradise operated, directly and through franchise agreements with 10 franchisee
groups, 63 bakery-cafes (31 company-owned and 32 franchise-operated bakery-cafes). Paradise bakery-cafes are
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