Panera Bread 2009 Annual Report Download - page 29

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Executive Summary of Results
In fiscal 2009, we earned $2.78 per diluted share with the following performance on key metrics: system-wide
comparable bakery-cafe sales growth of 0.5 percent (0.7 percent for Company-owned bakery-cafes and 0.5 percent
for franchise-operated bakery-cafes), which included the impact of the additional week in fiscal 2008, a 53 week
year; system-wide average weekly sales increased 1.8 percent to $39,926 ($39,050 for Company-owned bakery-
cafes and $40,566 for franchise-operated bakery-cafes); 69 new bakery-cafes opened system-wide (30 Company-
owned bakery-cafes and 39 franchise-operated bakery-cafes); and 14 bakery-cafes closed system-wide (seven
Company-owned bakery-cafes and seven franchise-operated bakery-cafes). Our fiscal 2009 results of $2.78 per
diluted share included $0.13 per diluted share of net charges, including a $0.07 per diluted share charge to increase
reserves for certain state sales tax audit exposures, a charge of $0.04 per diluted share to write-off smallwares and
equipment related to the rollout of new china and panini grills, a charge of $0.04 per diluted share related to the
closure of bakery-cafes, and a charge of $0.01 per diluted share related to the impairment of one bakery-cafe,
partially offset by a $0.03 per diluted share gain recorded on both, the redemptions received during year on our
investment in the Columbia Strategic Cash Portfolio and the change in the recorded fair value of the units held
during the year.
In fiscal 2008, we earned $2.22 per diluted share with the following performance on key metrics: system-wide
comparable bakery-cafe sales growth of 5.5 percent (5.8 percent for Company-owned bakery-cafes and 5.3 percent
for franchise-operated bakery-cafes), which included the impact of the additional week in fiscal 2008, a 53 week
year; system-wide average weekly sales increased 1.5 percent to $39,239 ($38,066 for Company-owned bakery-
cafes and $40,126 for franchise-operated bakery-cafes); 102 new bakery-cafes opened system-wide (35 Company-
owned bakery-cafes and 67 franchise-operated bakery-cafes); and seven bakery-cafes closed system-wide (five
Company-owned bakery-cafes and two franchise-operated bakery-cafes). In addition, beginning in the first quarter
of fiscal 2008, we adjusted our 2008 development plans and made a determination to raise our sales hurdles for new
bakery-cafe development and to no longer develop specific sites. As a result of this determination, we established a
reserve and recorded a charge of $2.8 million, or $0.06 per diluted share, to general and administrative expenses
related to severance, the write-off of capitalized assets and overhead costs and the termination of leases for specific
sites that we decided to no longer develop. Our fiscal 2008 results of $2.22 per diluted share also included additional
charges totaling $0.08 per diluted share, including a write-down of our investment in the Columbia Strategic Cash
Portfolio of $0.04 per diluted share, a $0.01 per diluted share impact with respect to on-going legal settlements, a
$0.02 per diluted share impact of an unfavorable tax adjustment, and a charge of $0.01 per diluted share for asset
write-offs related to our new coffee program.
In fiscal 2007, we earned $1.79 per diluted share with the following performance on key metrics: system-wide
comparable bakery-cafe sales growth of 1.6 percent (1.9 percent for Company-owned bakery-cafes and 1.5 percent
for franchise-operated bakery-cafes); system-wide average weekly sales declined 1.2 percent to $38,668 ($37,548
for Company-owned bakery-cafes and $39,433 for franchise-operated bakery-cafes); and 169 new bakery-cafes
opened system-wide, including 89 Company-owned bakery-cafes and 80 franchise-operated bakery-cafes. Addi-
tionally, we acquired 36 bakery-cafes from franchisees, we sold one bakery-cafe to a franchisee, and 10 bakery-
cafes were closed system-wide, including five Company-owned bakery-cafes and five franchise-operated bakery-
cafes. Further, on February 1, 2007, we purchased 51 percent of the outstanding stock of Paradise Bakery & Café,
Inc., referred to as Paradise, then owner and operator of 22 bakery-cafes and one commissary and franchisor of 22
bakery-cafes and one commissary. Our fiscal 2007 results of $1.79 per diluted share also included charges totaling
$0.03 per diluted share, which is comprised of a write-down of our investment in the Columbia Strategic Cash
Portfolio of $0.02 per diluted share and a charge of $0.01 per diluted share related to the discontinuation of our
Crispani»product line.
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