Panera Bread 2015 Annual Report Download - page 11

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, regarding our intention to repurchase shares from time to time under
the share repurchase program and the source of funding of such repurchases, our refranchising activities, 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 1,972 Company-owned and franchise-operated bakery-cafe locations in 46 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 8.3 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 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 29, 2015, our Company bakery-cafe operations segment consisted of 901 Company-owned bakery-
cafes and our franchise operations segment consisted of 1,071 franchise-operated bakery-cafes, located throughout the United
States and in Ontario, Canada. As of December 29, 2015, 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 29, 2015, or fiscal 2015, our revenues were $2,682 million, consisting of $2,359 million of
Company-owned net bakery-cafe sales, $139 million of franchise royalties and fees, and $184 million of fresh dough and other
product sales to franchisees. Franchise-operated net bakery-cafe sales, as reported by franchisees, were $2,478 million in fiscal
2015. See Note 19 to our consolidated financial statements for further segment information.
Our fiscal year ends on the last Tuesday in December. The fiscal years ended December 29, 2015 and December 30, 2014, or
fiscal 2014, each had 52 weeks. The fiscal year ended December 31, 2013, or fiscal 2013, had 53 weeks with the fourth quarter
comprising 14 weeks.