Einstein Bros 2003 Annual Report Download - page 3

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http://www.sec.gov/Archives/edgar/data/949373/000104746904009609/a2132006z10-k.htm[9/11/2014 10:13:55 AM]
In addition to historical information, this Annual Report on Form 10-K contains "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 (the "Exchange Act"). The words
"forecast," "estimate," "project," "intend," "expect," "should," "believe" and similar expressions are intended to identify forward-looking
statements. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including those
discussed in "Business-Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which may
cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the following:
•Our ability to achieve our business strategy of revitalizing our concept and menus;
•Our ability to open new company-owned Einstein Bros. locations;
•Our ability to satisfy our obligations under our indebtedness;
•Changes in the price of our raw ingredients;
•Our ability to attract, retain and motivate qualified employees;
•Changes in labor costs;
•Our dependence on our suppliers and distributors;
•Fluctuations in consumer preferences;
•The impact of federal, state or local government regulations;
•Competition in the restaurant industry;
•Availability and cost of additional capital;
•Litigation in connection with our operations, including food quality claims;
•Our ability to protect our trademarks, service marks and other proprietary rights;
•Actions taken by, and claims made against us by, our franchisees; and
•Other risks described from time to time in our periodic reports filed with the Securities and Exchange Commission (the "SEC").
This list of factors that may affect future performance and the accuracy of forward looking statements is illustrative but not exhaustive.
Accordingly, all forward looking statements should be evaluated with an understanding of their inherent uncertainty.
Except as required by law, we assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update
the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes
available in the future.
PART I
ITEM 1. BUSINESS
General
We are a leader in the quick casual segment of the restaurant industry with 736 locations in 32 states plus the District of Columbia as of
December 30, 2003. We specialize in high-quality foods for
2