Panera Bread 2009 Annual Report Download - page 7

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, or Exchange
Act. These statements are often identified by the words “believe”, “positioned”, “estimate”, “project”, “target”,
“continue”, “intend”, “expect”, “future”, “anticipate”, 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, referred to as “Panera Bread”, “Panera”, the “Company”, “we”,
“us”, and “our”, is a national bakery-cafe concept with 1,380 Company-owned and franchise-operated bakery-cafe
locations in 40 states and in Ontario, Canada. We have grown from serving approximately 60 customers a day at our
first bakery-cafe to currently serving nearly six million customers a week system-wide, becoming one of the largest
food service companies in the United States. We believe our success is rooted in our ability to create long-term
dining concept differentiation. We operate under the Panera Bread», Saint Louis Bread Co.»and Paradise Bakery &
Café»trademark names.
Our bakery-cafes are principally located in suburban, strip mall and regional mall locations. We feature high
quality, reasonably priced food in a warm, inviting, and comfortable environment. With our identity rooted in
handcrafted, fresh-baked, artisan bread, we are committed to providing great tasting, quality food that people can
trust. Nearly all of our bakery-cafes have a menu highlighted by antibiotic-free chicken, whole grain bread and
select organic and all-natural ingredients, with zero grams of artificial trans fat per serving, which provide flavorful,
wholesome offerings. Our 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, our customers enjoy our warm and welcoming environment featuring
comfortable gathering areas, relaxing decor, and free internet access. Our bakery-cafes routinely donate bread and
baked goods to community organizations in need.
We operate as three business segments: Company bakery-cafe operations, franchise operations, and fresh
dough operations. As of December 29, 2009, our Company bakery-cafe operations segment consisted of 585
Company-owned bakery-cafes, all located in the United States, and our franchise operations segment consisted of
795 franchise-operated bakery-cafes, located throughout the United States and in Ontario, Canada. As of
December 29, 2009, our fresh dough operations segment, which supplies fresh dough items daily to most
Company-owned and franchise-operated bakery-cafes, consisted of 23 fresh dough facilities (21 Company-owned
and two franchise-operated). In fiscal 2009, our revenues were $1,353.5 million, consisting of $1,153.3 million of
Company-owned bakery-cafe sales, $78.4 million of franchise royalties and fees, and $121.9 million of fresh dough
sales to franchisees. Franchise-operated bakery-cafe sales, as reported by franchisees, were $1,640.3 million in
fiscal 2009. See Note 19 to our consolidated financial statements for further segment information.
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