Panera Bread 2011 Annual Report Download - page 9

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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 the Exchange Act. These statements are often identified by the words
“believe,” “positioned,” “estimate,” “project,” “plan,” “goal,” “target,” “assume,” “continue,” “intend,” “expect,” “future,”
“anticipate” and other 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 the 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. 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. We expressly disclaim 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 1,541 Company-owned and franchise-operated bakery-cafe locations in 42 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 6.5 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 based on 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 located in urban, suburban, strip mall, and regional mall locations. We feature high quality, value priced food
in a warm, inviting, and comfortable environment. With our identity rooted in handcrafted artisan bread we bake every day, 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 27, 2011, our Company bakery-cafe operations segment consisted of 740 Company-owned bakery-
cafes, located throughout the United States and in Ontario, Canada, and our franchise operations segment consisted of 801 franchise-
operated bakery-cafes, all located in the United States. As of December 27, 2011, 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 24 fresh dough facilities (22 Company-owned and two franchise-operated). In the fiscal year ended December 27,
2011, or fiscal 2011, our revenues were $1,822.0 million, consisting of $1,592.9 million of Company-owned net bakery-cafe sales,
$92.8 million of franchise royalties and fees, and $136.3 million of fresh dough and other product sales to franchisees. Franchise-
operated net bakery-cafe sales, as reported by franchisees, were $1,828.2 million in fiscal 2011. See Note 19 to our consolidated
financial statements for further segment information.
Our fiscal year ends on the last Tuesday in December. Each of our fiscal years ended December 27, 2011, December 28, 2010 and
December 29, 2009 had 52 weeks.
Concept and Strategy
Bread is our platform and the entry point to the Panera experience at our bakery-cafes. It is the symbol of Panera quality and a
reminder of Panera Warmth, the totality of the experience the customer receives and can take home to share with friends and
family. We strive to offer a memorable experience with superior customer service. Our associates are passionate about sharing
their expertise and commitment with our customers. We strive to achieve what we call Concept Essence, our blueprint for attracting
and retaining our customers that we believe differentiates us from our competitors. Concept Essence begins with artisan bread,