Panera Bread: Q4/2009 Earnings Report

St. Louis / MO. (pbc) Panera Bread Company reported net income of 30 million USD, or 0,95 USD per diluted share, for the 13 weeks of the fourth quarter ended December 29, 2009; which included the net impact of 0,05 USD per diluted share of nonrecurring charges resulting from expected asset retirement activity. These results compare to net income of 26 million USD, or 0,84 USD per diluted share, for the 14 weeks of the fourth quarter ended December 30, 2008 and represent a 16 percent year-over-year increase in net income (with one less week in 2009). Overview:

  • Company-owned comparable bakery-cafe sales up 8,4 percent in the first six weeks of Q1/2010.
  • Franchise comparable bakery-cafe sales up 9,0 percent in the first six weeks of Q1/2010.
  • Q4/2009 Company-owned comparable bakery-cafe sales up 7,4 percent (calendar basis).
  • Q4/2009 operating margin up 130 bps over Q4/2008.
  • FY/2009 Company-owned new unit AWS of 37’618 USD hits highest mark in last six years.
  • Q1/2010 EPS target set at 0,74 USD to 0,76 USD (up 30 percent to 33 percent versus Q1/2009).
  • FY/2010 EPS target set at 3,26 USD to 3,34 USD (up 17 percent to 20 percent versus FY 2009).

For the 52 weeks of the fiscal year ended December 29, 2009, net income was 86 million USD, or 2,78 USD per diluted share. These results compare to net income of 67 million USD, or 2,22 USD per diluted share, for the 53 weeks of the fiscal year ended December 30, 2008 and represent a 28 percent year-over-year increase in net income (with one less week in 2009).

13 weeks ended 2009-12-29 14 weeks ended 2008-12-30 Change
Total revenue 366’972 USD 357’812 USD 03%
Net income 29’696 USD 25’549 USD 16%
Diluted earnings per share 0,95 USD 0,84 USD 13%
Shares used in diluted EPS 31’246 USD 30’576 USD

52 weeks ended 2009-12-29 53 weeks ended 2008-12-30 Change
Total revenue 1’353’494 USD 1’298’85 USD 34%
Net income 86’050 USD 67’436 USD 28%
Diluted earnings per share 2,78 USD 2,22 USD 25%
Shares used in diluted EPS 30’979 USD 30’422 USD

Q4/2009 Comparable Bakery-Cafe Sales Growth

As previously reported, in the fourth quarter of fiscal 2009, Company-owned comparable bakery-cafe sales increased 7,4 percent on a calendar basis versus the comparable period in fiscal 2008. Company-owned comparable bakery-cafe sales on a calendar basis increased in each of the fiscal months of the fourth quarter of 2009 compared to the corresponding fiscal months in 2008 (6,8 percent, 6,1 percent and 9,6 percent for October, November and December, respectively). Franchise-operated comparable bakery-cafe sales in the fourth quarter of fiscal 2009 increased 6,4 percent on a calendar basis versus the comparable period in fiscal 2008. As a result, system-wide comparable bakery-cafe sales in the fourth quarter of fiscal 2009 increased 6,8 percent on a calendar basis versus the comparable period in fiscal 2008.

The Company-owned comparable bakery-cafe sales increase of 7,4 percent on a calendar basis in the fourth quarter of fiscal 2009 included the following year-over-year components: transaction growth of 3,2 percent and average check growth of 4,2 percent. Average check growth in turn was comprised of retail price increases of approximately 2,0 percent and mix impact of approximately 2,2 percent.

On a fiscal basis, Company-owned comparable bakery-cafe sales for the fourth quarter of fiscal 2009 increased 5,9 percent while franchise-operated comparable bakery-cafe sales increased 5,1 percent, resulting in a system-wide comparable bakery-cafe sales increase of 5,4 percent versus the fourth quarter of fiscal 2008.

Note that the calendar basis comparison matches specific weeks in 2009 to the same specific weeks in 2008. The fiscal basis compares the 13 weeks of the fourth quarter of fiscal 2009 with the first 13 weeks of the 14 fiscal weeks of the fourth quarter of 2008. A schedule of further comparable bakery-cafe sales information is attached as Schedule III in the complete press release (see hyperlink below).

Q4/2009 Operating Margin Improvement

In the fourth quarter of fiscal 2009, the Company generated operating margin improvement of approximately 130 basis points compared to the fourth quarter of fiscal 2008. This is the seventh straight quarter of operating margin expansion of 100 basis points or greater.

Q4/2009 New Unit AWS and Development

In the fourth quarter of fiscal 2009, average weekly sales (AWS) for Company-owned new units increased to 38’057 USD compared to 36’943 USD in the fourth quarter of fiscal 2008. During the fourth quarter of fiscal 2009, the Company and its franchisees opened 22 new bakery-cafes system-wide, resulting in 1’380 bakery-cafes open system-wide as of the end December 29, 2009. The breakdown of Company-owned and franchise-operated bakery-cafes are as follows:

Company-owned Franchise-operated Total
SystemBakery-cafes as of September 29, 2009 575 787 1’362
Bakery-cafes opened 13 9 22
Bakery-cafes closed (3) (1) (4)
Bakery-cafes as of December 29, 2009 585 795 1’380

Info: Panera Bread Reports Fiscal 2009 EPS of 2,78 USD, up 25 percent over Fiscal 2008 (complete press release; PDF; 13 pages; 113 KB).
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