Panera Bread 2013 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, future
earnings per share, and the impact of our investments in sales-building initiatives and operational capabilities on future sales and
earnings, 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,” “assumption,” “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 1,777 Company-owned and franchise-operated bakery-cafe locations in 45 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 7.5 million customers per week system-wide. We 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 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. Our bakery-cafes have a menu highlighted by flavorful,
wholesome offerings, including chicken raised without antibiotics, whole grain bread, and select organic and all-natural ingredients,
with zero grams of artificial trans fat per serving. We strive to create new standards in everyday food choices, and our menu
includes a wide variety of year-round favorites complemented by new items introduced seasonally. In neighborhoods across the
United States and in Ontario, Canada, our customers are drawn to our warm and welcoming environment, which features
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 31, 2013, our Company bakery-cafe operations segment consisted of 867 Company-owned bakery-
cafes, located throughout the United States and in Ontario, Canada, and our franchise operations segment consisted of 910 franchise-
operated bakery-cafes, located throughout the United States and in Ontario, Canada. As of December 31, 2013, 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 31, 2013, or fiscal 2013, our revenues were
$2,385 million, consisting of $2,109 million of Company-owned net bakery-cafe sales, $113 million of franchise royalties and
fees, and $163 million of fresh dough and other product sales to franchisees. Franchise-operated net bakery-cafe sales, as reported
by franchisees, were $2,175 million in fiscal 2013. See Note 18 to our consolidated financial statements for further segment
information.
Our fiscal year ends on the last Tuesday in December. As a result, our fiscal year ending December 31, 2013 had 53 weeks with
the fourth quarter comprising 14 weeks. The fiscal years ended December 25, 2012 and December 27, 2011 each had 52 weeks.