Panera Bread 2012 Annual Report Download - page 9

1
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, plans, objectives, and
future earnings per share, 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, as amended, or the Exchange Act. These statements are often identified
by the words “believe,” “positioned,” “estimate,” “project,” “target,” “plan,” “goal,” “assume,” “continue,” “intend,” “expect,”
“future,” “anticipate,” and other similar expressions, whether in the negative or the affirmative, that are not statements of historical
fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict, and you should not place undue reliance on our forward-looking statements. 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. While we may elect to
update forward-looking statements at some point in the future, 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 1,652 Company-owned and franchise-operated bakery-cafe locations in 44 states, the District
of Columbia, and Ontario, Canada. We have grown from serving approximately 60 customers per day at our first bakery-cafe to
currently serving nearly 7.0 million customers per 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 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 fresh bread every
day. We are committed to providing great tasting, quality food that people can trust. All of our bakery-cafes have a menu highlighted
by antibiotic-free chicken and roasted turkey, 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 25, 2012, our Company bakery-cafe operations segment consisted of 809 Company-owned bakery-
cafes, located throughout the United States and in Ontario, Canada, and our franchise operations segment consisted of 843 franchise-
operated bakery-cafes, located throughout the United States and in Ontario, Canada. As of December 25, 2012, 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), located throughout
the United States and one in Ontario, Canada. In the fiscal year ended December 25, 2012, or fiscal 2012, our revenues were
$2,130.1 million, consisting of $1,879.3 million of Company-owned net bakery-cafe sales, $102.1 million of franchise royalties
and fees, and $148.7 million of fresh dough and other product sales to franchisees. Franchise-operated net bakery-cafe sales, as
reported by franchisees, were $1,981.7 million in fiscal 2012. See Note 18 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 25, 2012, December 27, 2011 and
December 28, 2010 had 52 weeks. Our fiscal year ending December 31, 2013 will have 53 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 our customer receives and can take home to share with friends and