Panera Bread 2014 Annual Report Download - page 27

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• changes in demographics, consumer preferences, and discretionary spending;
• negative publicity about the ingredients we use or the occurrence of food-borne illnesses or other problems at our
bakery-cafes; and
• seasonality, including as a result of inclement weather.
• cost increases due to:
• changes in our operating costs;
• labor availability and increased labor costs, including wages and other compensation of management and associates,
insurance, and health care; and
• changes in business strategy including concept evolution and new designs.
• profitability of new bakery-cafes, especially in new markets;
• delays in new bakery-cafe openings; and
• fluctuations in supply costs, shortages, or interruptions.
As a result of these factors, results for any one quarter are not necessarily indicative of results to be expected for any other quarter
or for any year. Average weekly sales or comparable bakery-cafe sales in any particular future period may decrease. In the future,
operating results may fall below the expectations of securities analysts and investors, which could cause our stock price to fall.
We believe the market price of our common stock reflects high market expectations for our future operating results. As a result,
if we fail to meet market expectations for our operating results in the future, any resulting decline in the price of our common
stock could be significant.
Our federal, state, and local tax returns have been, and may in the future be, selected for audit by the tax authorities, which
may result in tax assessments or penalties that could have a material adverse impact on our consolidated financial position
and results of operations.
We are subject to federal, state, and local taxes in the United States and Canada, including income, sales, use, and other applicable
taxes. Significant judgment is required in determining the provision for taxes. Additionally, sales and use tax requirements are
often fact-specific, complex and vary from jurisdiction to jurisdiction, which complicates monitoring and compliance. Although
we believe our tax estimates are reasonable and our procedures for collecting sales taxes are appropriate, from time to time, federal,
state, and local tax authorities have challenged, and may in the future challenge, positions we have taken on our tax returns or our
sales tax collection policies. If we are unable to resolve these challenges favorably, we could incur additional tax liability, including
interest and penalties. If material, payment of such additional amounts upon final adjudication, or resolution of any disputes, could
have a material impact on our consolidated financial position and results of operations.
A regional or global health pandemic could severely affect our business.
A health pandemic is a disease outbreak that spreads rapidly and widely by infection and affects many individuals in an area or
population at the same time. If a regional or global health pandemic occurs, depending upon its duration, location, and severity,
our business could be severely affected. Generally, we are viewed by our customers as a high-quality, friendly, all day destination
where people can gather with family, friends, and business colleagues. Customers may avoid public gathering places in the event
of a health pandemic, and local, regional, or national governments might limit or ban public gatherings to halt or delay the spread
of disease. A regional or global health pandemic might also adversely impact our business by disrupting or delaying production
and delivery of ingredients and products in our supply chain and by causing staffing shortages in our bakery-cafes.
Regional factors could negatively impact our consolidated results of operations.
There are several states in which we, our franchisees, or both, own and operate a significant number of bakery-cafes. As a result,
the economic conditions, state and local laws, government regulations, and weather conditions affecting those particular states,
or a geographic region generally, may have a material impact upon our consolidated results of operations.