Panera Bread 2008 Annual Report Download - page 8

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, or SEC. 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 1,252 system-wide Panera Bread»and Saint Louis Bread Co.»bakery-cafes, and the term
“Paradise” to refer specifically to the 73 system-wide Paradise Bakery & Café»bakery-cafes.
As of December 30, 2008, Panera operated, directly and through franchise agreements with 39 franchisee
groups, 1,252 bakery-cafes (527 Company-owned and 725 franchise-operated bakery-cafes). During fiscal 2008,
Panera opened 91 bakery-cafes system-wide (30 Company-owned and 61 franchise-operated bakery-cafes) and
closed six bakery-cafes system-wide (four Company-owned and two franchise-operated bakery-cafes). Panera
bakery-cafes are principally located in suburban, strip mall, and regional mall locations and currently operate in
38 states and in Ontario, Canada. 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 with no added 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 this country and in Ontario, Canada, 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. If we do not exercise our right to purchase the remaining
49 percent of the outstanding capital stock of Paradise by June 30, 2009, 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 30, 2008, Paradise operated, directly and through franchise agreements with 10 franchisee
groups, 73 bakery-cafes (35 company-owned and 38 franchise-operated bakery-cafes). Paradise bakery-cafes are
1