Panera Bread 2009 Annual Report Download - page 21

Download and view the complete annual report

Please find page 21 of the 2009 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 97

  • 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

Failure to meet market expectations for our financial performance will likely adversely affect the market
price of our stock.
The public trading of our stock is based in large part on market expectations that our business will continue to
grow and that we will achieve certain levels of financial performance. Should we fail to meet market expectations
going forward, particularly with respect to comparable bakery-cafe sales, net revenues, operating margins, and
earnings per share, the market price of our stock will likely decline.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The average size of a Company-owned bakery-cafe is approximately 4,600 square feet. The square footage of
each of our fresh dough facilities is provided below. We lease all of our bakery-cafe locations and fresh dough
facilities. Lease terms for our bakery-cafes and fresh dough facilities are generally 10 years with renewal options at
most locations and our leases generally require us to pay a proportionate share of real estate taxes, insurance,
common area, and other operating costs. Many bakery-cafe leases provide for contingent rental (i.e. percentage
rent) payments based on sales in excess of specified amounts. Certain of our lease agreements provide for scheduled
rent increases during the lease terms or for rental payments commencing at a date other than the date of initial
occupancy. See Note 2 to the consolidated financial statements for further information on our accounting for leases.
Information with respect to our Company-owned leased fresh dough facilities as of December 29, 2009 is set
forth below:
Facility Square Footage
Atlanta,GA....................................................... 18,000
Beltsville, MD ..................................................... 26,800
Chicago, IL ....................................................... 30,900
Cincinnati,OH..................................................... 22,300
Dallas,TX........................................................ 12,900
Denver,CO ....................................................... 10,000
Detroit,MI........................................................ 19,600
Fairfield,NJ....................................................... 39,900
Franklin, MA(1) .................................................... 40,300
Greensboro, NC .................................................... 19,200
Kansas City, KS .................................................... 17,000
Minneapolis, MN ................................................... 10,300
Miramar, FL ...................................................... 15,100
Ontario,CA....................................................... 27,800
Orlando, FL ....................................................... 16,500
Phoenix, AZ....................................................... 9,100
Seattle, WA ....................................................... 16,600
St. Louis, MO ..................................................... 30,000
Stockton, CA ...................................................... 14,300
Warren,OH....................................................... 16,300
Ontario, CAN(2) ................................................... 300
(1) Total square footage includes approximately 20,000 square feet utilized in tuna and cream cheese production.
(2) Company-owned limited production facility co-located with one of our franchised bakery-cafes in Ontario,
Canada to support the franchise-operated bakery-cafes located in this market.
15