Panera Bread 2014 Annual Report Download - page 13

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, expressed or implied, of our anticipated growth, operating results, future earnings per
share, plans, objectives, 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, as amended,
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”, “plan”, “goal”, “target”, “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 United States 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 1,880 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 7.8 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. In 2014, we formalized our Food Policy, which is an
articulation of Panera's long held values that expresses a commitment to clean ingredients, transparency, and a positive impact on
the food system. Our bakery-cafes have a menu highlighted by flavorful, wholesome offerings, including select proteins raised
without antibiotics, grass-fed beef, 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 30, 2014, our Company bakery-cafe operations segment consisted of 925 Company-owned bakery-
cafes and our franchise operations segment consisted of 955 franchise-operated bakery-cafes, located throughout the United States
and in Ontario, Canada. As of December 30, 2014, 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 30, 2014, or fiscal 2014, our revenues were $2,529 million, consisting of $2,230 million of Company-owned
net bakery-cafe sales, $124 million of franchise royalties and fees, and $175 million of fresh dough and other product sales to
franchisees. Franchise-operated net bakery-cafe sales, as reported by franchisees, were $2,282 million in fiscal 2014. See Note
18 to our consolidated financial statements for further segment information.
Our fiscal year ends on the last Tuesday in December. The fiscal years ended December 30, 2014 and December 25, 2012, or
fiscal 2012, each had 52 weeks. The fiscal year ended December 31, 2013, or fiscal 2013, had 53 weeks with the fourth quarter
comprising 14 weeks.