Panera Bread 2010 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, or Exchange
Act. These statements are often identified by the words “believe,” “positioned,” “estimate,” “project,” “plan,”
“goal,” “target,” “continue,” “intend,” “expect,” “future,” “anticipate” and similar expressions that are not state-
ments 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 represent our estimates as of the date made and should not be relied upon as
representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at
some point in the future, we specifically disclaim any obligation to update any forward-looking statement to reflect
events or circumstances that arise after the date such statement was made.
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 1,453 Company-owned and franchise-operated bakery-cafe
locations in 40 states, the District of Columbia, and 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,
and are currently 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
the United States 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 and other product operations. As of December 28, 2010, our Company bakery-cafe operations segment
consisted of 662 Company-owned bakery-cafes, located throughout the United States and in Ontario, Canada, and
our franchise operations segment consisted of 791 franchise-operated bakery-cafes, all located in the United States.
As of December 28, 2010, our fresh dough and other product operations segment, which supplies fresh dough and
other products daily to most Company-owned and franchise-operated bakery-cafes, consisted of 26 fresh dough
facilities (22 Company-owned and four franchise-operated). In the fiscal year ended December 28, 2010, or fiscal
2010, our revenues were $1,542.5 million, consisting of $1,321.2 million of Company-owned net bakery-cafe sales,
$86.2 million of franchise royalties and fees, and $135.1 million of fresh dough and other product sales to
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