Panera Bread 2007 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2007 Panera Bread annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Bakery-cafe sales for the fiscal year ended December 25, 2007 increased 34.3 percent to $894.9 million
compared to $666.1 million for the fiscal year ended December 26, 2006. The increase in bakery-cafe sales for the
fiscal year ended December 25, 2007 compared to the prior fiscal year is primarily due to the impact of a full year’s
operations of the 70 Company-owned bakery-cafes opened in 2006, the opening of 89 new Company-owned
bakery-cafes, the acquisition of 36 bakery-cafes from franchisees in 2007, and to a lesser extent the 1.9 percent
increase in comparable Company-owned bakery-cafe sales for the fiscal year ended December 25, 2007. Bakery-
cafe sales were also positively impacted by revenues from the 22 Paradise company-owned bakery-cafes acquired
on February 1, 2007 and consolidated into our results prospectively from the acquisition date. In total, Company-
owned bakery-cafe sales as a percentage of total revenue increased by 3.5 percentage points to 83.9 percent for the
fiscal year ended December 25, 2007 as compared to 80.4 percent in the prior fiscal year. Bakery-cafes included in
comparable sales increases and not included in comparable sales increases consisted of 4.8 percent and 95.2 percent,
respectively, of the $228.8 million increase in sales from the prior fiscal year. In addition, average weekly sales for
Company-owned bakery-cafes for the fiscal year ended December 25, 2007 decreased as compared to the prior year
primarily due to the growth of bakery-cafes opened three years or fewer as a percentage of total bakery-cafes
opened, which experience a slower initial ramp-up of average weekly sales; due to lower average weekly sales for
bakery-cafes opened in 2007, which averaged $33,835 for fiscal year 2007 driven by the greater concentration of
Company-owned bakery-cafe openings in immature markets; and due to lower year-over-year sales price increases
in our Company-owned bakery-cafes in 2007 as compared to 2006. The average weekly sales per Company-owned
bakery-cafe and the related number of operating weeks for the periods indicated are as follows:
December 25,
2007
December 26,
2006
Percentage
Change
For the Fiscal Year Ended
Company-owned average weekly sales ................ $37,548 $37,833 ⫺0.8%
Company-owned number of operating weeks ........... 23,834 17,607 35.4%
Franchise royalties and fees for the fiscal year ended December 25, 2007 increased 9.3 percent to $67.2 million
compared to $61.5 million for the fiscal year ended December 26, 2006. The components of franchise royalties and
fees for the periods indicated are as follows (in thousands):
December 25,
2007
December 26,
2006
For the Fiscal Year Ended
Franchise royalties ........................................ $64,581 $58,686
Franchise fees ........................................... 2,607 2,845
Total ................................................ $67,188 $61,531
The increase in royalty revenue for the fiscal year ended December 25, 2007 compared to the prior fiscal year
can be attributed to the impact of a full year’s operations of the 85 franchise-operated bakery-cafes opened in 2006,
the opening of 80 franchise-operated bakery-cafes and to a lesser extent the purchase of one bakery-cafe from the
Company in 2007 and the 1.5 percent increase in comparable franchise-operated bakery-cafe sales for the fiscal
year ended December 25, 2007. Franchise royalties and fees were also positively impacted by the consolidation of
royalties and fees from the 22 Paradise franchise-operated bakery-cafes acquired on February 1, 2007 and included
in our results prospectively from the acquisition date and partially offset by the sale of 36 bakery-cafes by
franchisees to the Company in fiscal year 2007. Franchise-operated bakery-cafes included in comparable sales
increases and not included in comparable sales increases contributed 12.3 percent and 87.7 percent, respectively, of
the $131.0 million increase in sales from the prior fiscal year. Further, our franchise royalties have been negatively
impacted by this trend of decreasing average weekly sales experienced in fiscal 2007. The average weekly sales per
franchise-operated bakery-cafe and the related number of operating weeks for the periods indicated are as follows:
December 25,
2007
December 26,
2006
Percentage
Change
For the Fiscal Year Ended
Franchisee average weekly sales .................... $39,433 $39,894 ⫺1.2%
Franchisee number of operating weeks ............... 34,905 31,220 11.8%
28