SOURCE: Panera Bread Company

February 11, 2010 16:06 ET

Panera Bread Reports Fiscal 2009 EPS of $2.78, up 25% Over Fiscal 2008

ST. LOUIS, MO--(Marketwire - February 11, 2010) - Panera Bread Company (NASDAQ: PNRA)

HIGHLIGHTS

--  Company-owned comparable bakery-cafe sales up 8.4% in the first 6 weeks
    of Q1 2010
--  Franchise comparable bakery-cafe sales up 9.0% in the first 6 weeks of
    Q1 2010
--  Q4 2009 Company-owned comparable bakery-cafe sales up 7.4% (calendar
    basis)
--  Q4 2009 operating margin up 130 bps over Q4 2008
--  FY 2009 Company-owned new unit AWS of $37,618 hits highest mark in last
    six years
--  Q1 2010 EPS target set at $0.74 to $0.76 (up 30% to 33% versus Q1 2009)
--  FY 2010 EPS target set at $3.26 to $3.34 (up 17% to 20% versus FY 2009)

Panera Bread Company (NASDAQ: PNRA) today reported net income of $30 million, or $0.95 per diluted share, for the 13 weeks of the fourth quarter ended December 29, 2009, which included the net impact of $0.05 per diluted share of nonrecurring charges resulting from expected asset retirement activity. These results compare to net income of $26 million, or $0.84 per diluted share, for the 14 weeks of the fourth quarter ended December 30, 2008 and represent a 16% year-over-year increase in net income (with one less week in 2009).

For the 52 weeks of the fiscal year ended December 29, 2009, net income was $86 million, or $2.78 per diluted share. These results compare to net income of $67 million, or $2.22 per diluted share, for the 53 weeks of the fiscal year ended December 30, 2008 and represent a 28% year-over-year increase in net income (with one less week in 2009).

Investors should be aware the fiscal 2009 results were not impacted by the share repurchase program authorized in the fourth quarter of fiscal 2009 as the share repurchase activity in the fourth quarter of fiscal 2009 was negligible.

The Company's fourth quarter and full year fiscal 2009 consolidated statements of operations and margin analysis are attached as Schedule I. The following tables set forth, for the periods indicated, certain items included in the Company's consolidated statements of operations (in thousands, except per share data and percentages):


                                For the 13        For the 14
                               Weeks Ended       Weeks Ended
                            ----------------- ----------------- Percentage
                            December 29, 2009 December 30, 2008   Change
                            ----------------- ----------------- ----------

Total revenue               $         366,972 $         357,812          3%
Net income                  $          29,696 $          25,549         16%
Diluted earnings per share  $            0.95 $            0.84         13%
Shares used in diluted EPS             31,246            30,576



                               For the 52        For the 53
                               weeks ended       weeks ended
                            ----------------- ----------------- Percentage
                            December 29, 2009 December 30, 2008   Change
                            ----------------- ----------------- ----------

Total revenue               $       1,353,494 $       1,298,853          4%
Net income                  $          86,050 $          67,436         28%
Diluted earnings per share  $            2.78 $            2.22         25%
Shares used in diluted EPS             30,979            30,422

Fourth Quarter Fiscal 2009 Results and Business Review

Comparable Bakery-Cafe Sales Growth

As previously reported, in the fourth quarter of fiscal 2009, Company-owned comparable bakery-cafe sales increased 7.4% 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%, 6.1%, and 9.6%, for October, November, and December, respectively). Franchise-operated comparable bakery-cafe sales in the fourth quarter of fiscal 2009 increased 6.4% 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% on a calendar basis versus the comparable period in fiscal 2008.

The Company-owned comparable bakery-cafe sales increase of 7.4% on a calendar basis in the fourth quarter of fiscal 2009 included the following year-over-year components: transaction growth of 3.2% and average check growth of 4.2%. Average check growth in turn was comprised of retail price increases of approximately 2.0% and mix impact of approximately 2.2%.

On a fiscal basis, Company-owned comparable bakery-cafe sales for the fourth quarter of fiscal 2009 increased 5.9% while franchise-operated comparable bakery-cafe sales increased 5.1%, resulting in a system-wide comparable bakery-cafe sales increase of 5.4% 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.

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.

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 compared to $36,943 in the fourth quarter of fiscal 2008. A schedule of the Company's fourth quarter and full year fiscal 2009 AWS is attached as Schedule II.

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-   Franchise-     Total
                                         owned      operated     System
                                       ---------  -----------  -----------

Bakery-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
                                       =========  ===========  ===========


First Quarter Fiscal 2010 Business Outlook

Establishing First Quarter Fiscal 2010 Targets

Diluted EPS Target

For the first quarter of fiscal 2010, the Company is targeting earnings per diluted share of $0.74 to $0.76. If the Company meets the target, diluted earnings per share will grow 30% to 33% in the first quarter of fiscal 2010 versus the first quarter of fiscal 2009.

The first quarter of fiscal 2010 diluted earnings per share target assumes the following key metrics:

Comparable Bakery-Cafe Sales Growth

First quarter of fiscal 2010 Company-owned comparable bakery-cafe sales growth is targeted at 8.0% to 9.0% versus the comparable period in fiscal 2009. The assumptions underlying this comparable bakery-cafe sales growth target for the first quarter are transaction growth of 3.25% to 3.75% and average check growth of approximately 4.75% to 5.25%, with average check growth consisting of approximately 1.75% price and 3.0% to 3.5% mix impact on average check.

The Company announced today Company-owned comparable bakery-cafe sales in the first six weeks of fiscal 2010 were up approximately 8.4% versus the comparable period in fiscal 2009, while franchise-operated comparable bakery-cafe sales were up approximately 9.0% during the same period.

Operating Margin Improvement

In the first quarter of fiscal 2010, the Company is targeting approximately 150 to 200 basis points of improvement in operating margin.

New Unit AWS and Development

The Company is targeting approximately 5 to 10 system-wide new unit openings in the first quarter of fiscal 2010 with average weekly sales for Company-owned new units consistent with its full year target of $36,000 to $38,000.

Full Year Fiscal 2010 Targets

Raising Full Year Fiscal 2010 Targets

The Company is today raising its target for fiscal 2010 earnings per diluted share to $3.26 to $3.34, which would represent an increase of 17% to 20% in year-over-year earnings per diluted share. This is an increase from the Company's prior full year fiscal 2010 earnings per diluted share target of $3.05 to $3.15. Further, this increase in the fiscal 2010 target is based on the Company's greater confidence in the strength of Company-owned comparable bakery-cafe sales growth.

Investors should be aware the Company's fiscal 2010 earnings per share target does not assume any impact from the share repurchase program authorized in the fourth quarter of fiscal 2009 and the impact of any share repurchase activity will be incremental to these targeted results.

The Company's fiscal 2010 target assumes Company-owned comparable bakery-cafe sales growth of 4.5% to 6.5% versus the comparable period in fiscal 2009. This target assumes transaction growth between 1.5% and 2.5% and average check growth of 3.0% to 4.0%. The Company is anticipating that it will take modest price increases during fiscal 2010 to cover inflation in non-food costs.

In terms of operating margin expansion, the Company is targeting 75 to 125 basis points of improvement in operating profit as a percent of total revenues in fiscal 2010.

The Company is targeting approximately 80 to 90 new unit openings in fiscal 2010. Average weekly sales for new Company-owned units is targeted to be between $36,000 to $38,000 in fiscal 2010.

Concluding Comment

Chairman and Chief Executive Officer Ron Shaich commented: "In 2009, the Company's EPS grew 25%. This followed on the heels of 24% EPS growth in 2008 and occurred despite the recession. As well 2009 saw the Company deliver the highest average weekly sales of new cafes in the past six years. Most significantly, Panera has experienced comparable bakery-cafe sales growth in excess of 9% for the last two and a half months. Taken together, these results speak to the strength of our concept, and the success of our decision to stay true to our long term business strategy (despite the recession) and continue to invest in the business to benefit our customer and drive market share. The recent results, the strength of our concept and the validity of our strategy gives us the confidence to target Q1 2010 EPS up 30% to 33% and to look forward to expanding earnings growth well into the future."

Notes:

The Company will host a conference call that will be broadcast on the Internet at 8:30 A.M. Eastern Time on Friday, February 12, 2010 to discuss fourth quarter fiscal 2009 results, preliminary comparable bakery-cafe sales results for the six weeks of the fiscal 2010 first quarter, and first quarter and full year fiscal 2010 targets and business outlook. To access the call or view a copy of this release, go to http://www.panerabread.com/investor. Access to the call will be made available for 14 days after the call, and the release will be archived for one year.

Comparable bakery-cafe sales percentages are non-GAAP financial measures, which should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with Generally Accepted Accounting Principles, or GAAP, and may not be equivalent to comparable bakery-cafe sales as defined or used by other companies. We do not record franchise-operated bakery-cafe sales as revenues. However, royalty revenues are calculated based on a percentage of franchise-operated bakery-cafe sales, as reported by franchisees. We use franchise-operated and system-wide sales information internally in connection with store development decisions, planning, and budgeting analyses. We believe franchise-operated and system-wide sales information is useful in assessing consumer acceptance of our brand; facilitates an understanding of our financial performance and the overall direction and trends of sales and operating income; helps us appreciate the effectiveness of our advertising and marketing initiatives which our franchisees also contribute based on a percentage of their sales; and provides information that is relevant for comparison within the industry.

Panera Bread Company owns and franchises 1,380 bakery-cafes as of December 29, 2009 under the Panera Bread®, Saint Louis Bread Co.®, and Paradise Bakery & Café® names. With our identity rooted in handcrafted, fresh-baked, artisan bread, we are committed to providing great tasting, quality food that people can trust. Nearly all of our bakery-cafes have a menu highlighted by antibiotic free chicken, whole grain bread, select organic and all-natural ingredients, with zero grams of artificial trans fat per serving, which provide flavorful, wholesome offerings. Our menu includes a wide variety of year-round favorites, complemented by new items introduced seasonally with the goal of creating new standards in everyday food choices. In neighborhoods across this country and in Ontario, Canada, our customers enjoy our warm and welcoming environment featuring comfortable gathering areas, relaxing decor, and free internet access. Our bakery-cafes routinely donate bread and baked goods to community organizations in need. Additional information is available on the Company's website, http://www.panerabread.com.

Matters discussed in this news release, including any discussion or impact, express or implied, on the Company's anticipated growth, operating results, and future earnings per share, contain 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. These statements are often identified by the words "believe", "positioned", "estimate", "project", "target", "continue", "intend", "expect", "future", "anticipate", and similar expressions. All forward-looking statements included in this release are made only as of the date of this release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that occur or which we hereafter become aware, after that date. Forward-looking information expresses management's present belief, expectations, or intentions regarding the Company's future performance. The Company's actual results could differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties and could be negatively impacted by a number of factors. These factors include, but are not limited to, the following: inability to execute our growth strategy, including, among other things, variations in the number, timing, and successful nature of Company-owned and franchise-operated bakery-cafe openings and continued successful operation of bakery-cafes; failure to comply with government regulations; changes in consumer spending habits as a result of an extended economic downturn; loss of a member of senior management; inability to recruit qualified personnel; failure or inability to protect our brand, trademarks, or other proprietary rights; competition; rising insurance costs; disruption in our supply chain or increases in ingredient, product, or other supply costs; disruptions or supply issues in our fresh dough facilities; health concerns about the consumption of certain products; complaints and litigation; risks associated with acquisitions; other factors, some of which may be beyond our control, effecting our operating results; and other factors that may effect restaurant owners or retailers in general. These and other risks are discussed from time to time in the Company's SEC reports, including its Form 10-K for the year ended December 30, 2008 and its quarterly reports on Form 10-Q.



                                                                 Schedule I

                              PANERA BREAD COMPANY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
                    (In thousands, except per share amounts)


                                               For the 13     For the 14
                                               Weeks Ended    Weeks Ended
                                              -------------  -------------
                                               December 29,   December 30,
                                                   2009           2008
                                              -------------  -------------

Revenues:
   Bakery-cafe sales                          $     312,858  $     302,967
   Franchise royalties and fees                      21,213         21,117
   Fresh dough sales to franchisees                  32,901         33,728
                                              -------------  -------------
      Total revenue                                 366,972        357,812
Costs and expenses:
  Bakery-cafe expenses:
      Cost of food and paper products         $      88,834  $      88,802
      Labor                                          97,703         95,619
      Occupancy                                      24,438         24,056
      Other operating expenses                       40,659         39,935
                                              -------------  -------------
         Total bakery-cafe expenses                 251,634        248,412
  Fresh dough cost of sales to franchisees           25,646         28,191
  Depreciation and amortization                      17,176         18,057
  General and administrative expenses                24,128         20,984
  Pre-opening expenses                                1,081            500
                                              -------------  -------------
      Total costs and expenses                      319,665        316,144
                                              -------------  -------------
Operating profit                                     47,307         41,668
Interest expense                                        163            208
Other (income) expense, net                            (818)            76
                                              -------------  -------------
Income before income taxes                           47,962         41,384
Income taxes                                         18,266         15,341
                                              -------------  -------------
      Net income                                     29,696         26,043
Less: net income attributable to
 noncontrolling interest                                  -            494
                                              -------------  -------------
      Net income attributable to Panera
       Bread Company                          $      29,696  $      25,549
                                              =============  =============

Earnings per common share attributable to
 Panera Bread Company:
   Basic                                      $        0.96  $        0.84
                                              =============  =============
   Diluted                                    $        0.95  $        0.84
                                              =============  =============

Weighted average shares of common and common
 equivalent shares outstanding:
   Basic                                             30,936         30,263
                                              =============  =============
   Diluted                                           31,246         30,576
                                              =============  =============



                                                     Schedule I (continued)

                              PANERA BREAD COMPANY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
                    (In thousands, except per share amounts)


                                               For the 52     For the 53
                                               Weeks Ended    Weeks Ended
                                              -------------  -------------
                                               December 29,   December 30,
                                                   2009           2008
                                              -------------  -------------

Revenues:
   Bakery-cafe sales                          $   1,153,255  $   1,106,295
   Franchise royalties and fees                      78,367         74,800
   Fresh dough sales to franchisees                 121,872        117,758
                                              -------------  -------------
      Total revenue                               1,353,494      1,298,853
Costs and expenses:
  Bakery-cafe expenses:
      Cost of food and paper products         $     337,599  $     332,697
      Labor                                         370,595        352,462
      Occupancy                                      95,996         90,390
      Other operating expenses                      155,396        147,033
                                              -------------  -------------
          Total bakery-cafe expenses                959,586        922,582
  Fresh dough cost of sales to franchisees          100,229        108,573
  Depreciation and amortization                      67,162         67,225
  General and administrative expenses                83,169         84,393
  Pre-opening expenses                                2,451          3,374
                                              -------------  -------------
      Total costs and expenses                    1,212,597      1,186,147
                                              -------------  -------------
Operating profit                                    140,897        112,706
Interest expense                                        700          1,606
Other (income) expense, net                             273            883
                                              -------------  -------------
Income before income taxes                          139,924        110,217
Income taxes                                         53,073         41,272
                                              -------------  -------------
      Net income                                     86,851         68,945
Less: net income attributable to
 noncontrolling interest                                801          1,509
                                              -------------  -------------
      Net income attributable to
       Panera Bread Company                   $      86,050  $      67,436
                                              =============  =============

Earnings per common share attributable to
 Panera Bread Company:
   Basic                                      $        2.81  $        2.24
                                              =============  =============
   Diluted                                    $        2.78  $        2.22
                                              =============  =============

Weighted average shares of common and common
 equivalent shares outstanding:
   Basic                                              30,667        30,059
                                              ==============  ============
   Diluted                                            30,979        30,422
                                              ==============  ============



                                                     Schedule I (continued)

                              PANERA BREAD COMPANY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                MARGIN ANALYSIS
                                  (unaudited)

The following table sets forth the percentage relationship to total
revenues, except where otherwise indicated, of certain items included in
the Company's consolidated statements of operations for the period
indicated. Percentages may not add due to rounding:


                                             For the 13      For the 14
                                             Weeks Ended     Weeks Ended
                                            -------------   -------------
                                             December 29,    December 30,
                                                 2009            2008
                                            -------------   -------------

Revenues:
   Bakery-cafe sales                                 85.3 %          84.7 %
   Franchise royalties and fees                       5.8             5.9
   Fresh dough sales to franchisees                   9.0             9.4
                                            -------------   -------------
       Total revenues                               100.0 %         100.0 %
Costs and expenses:
    Bakery-cafe expenses (1):
       Cost of food and paper products               28.4 %          29.3 %
       Labor                                         31.2            31.6
       Occupancy                                      7.8             7.9
       Other operating expenses                      13.0            13.2
                                            -------------   -------------
         Total bakery-cafe expenses                  80.4            82.0
    Fresh dough cost of sales to
     franchisees (2)                                 77.9            83.6
    Depreciation and amortization                     4.7             5.0
    General and administrative expenses               6.6             5.9
    Pre-opening expenses                              0.3             0.1
                                            -------------   -------------
       Total costs and expenses                      87.1            88.4
                                            -------------   -------------
Operating profit                                     12.9            11.6
Interest expense                                        -             0.1
Other (income) expense, net                          (0.2)              -
                                            -------------   -------------
Income before income taxes                           13.1            11.6
Income taxes                                          5.0             4.3
                                            -------------   -------------
       Net income                                     8.1             7.3
Less: net income attributable to
 noncontrolling interest                                -             0.1
                                            -------------   -------------
       Net income attributable to
        Panera Bread Company                          8.1 %           7.1 %
                                            =============   =============


(1)  As a percentage of Company bakery-cafe sales.

(2)  As a percentage of fresh dough sales to franchisees.



                                                     Schedule I (continued)

                              PANERA BREAD COMPANY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                MARGIN ANALYSIS
                                  (unaudited)

The following table sets forth the percentage relationship to total
revenues, except where otherwise indicated, of certain items included in
the Company's consolidated statements of operations for the period
indicated. Percentages may not add due to rounding:


                                             For the 52      For the 53
                                             Weeks Ended     Weeks Ended
                                            -------------   -------------
                                             December 29,    December 30,
                                                 2009            2008
                                            -------------   -------------

Revenues:
   Bakery-cafe sales                                 85.2 %          85.2 %
   Franchise royalties and fees                       5.8             5.8
   Fresh dough sales to franchisees                   9.0             9.1
                                            -------------   -------------
       Total revenues                               100.0 %         100.0 %
Costs and expenses:
   Bakery-cafe expenses (1):
       Cost of food and paper products               29.3 %          30.1 %
       Labor                                         32.1            31.9
       Occupancy                                      8.3             8.2
       Other operating expenses                      13.5            13.3
                                            -------------   -------------
         Total bakery-cafe expenses                  83.2            83.4
    Fresh dough cost of sales to
     franchisees (2)                                 82.2            92.2
    Depreciation and amortization                     5.0             5.2
    General and administrative expenses               6.1             6.5
    Pre-opening expenses                              0.2             0.3
                                            -------------   -------------
       Total costs and expenses                      89.6            91.3
                                            -------------   -------------
Operating profit                                     10.4             8.7
Interest expense                                      0.1             0.1
Other (income) expense, net                             -             0.1
                                            -------------   -------------
Income before income taxes                           10.3             8.5
Income taxes                                          3.9             3.2
                                            -------------   -------------
      Net income                                      6.4             5.3
Less: net income attributable to
 noncontrolling interest                              0.1             0.1
                                            -------------   -------------
      Net income attributable to
       Panera Bread Company                           6.4 %           5.2 %
                                            =============   =============


(1)  As a percentage of Company bakery-cafe sales.

(2)  As a percentage of fresh dough sales to franchisees.



                           PANERA BREAD COMPANY
        Schedule II - Supplemental Sales and Bakery-Cafe Information

                Historical System-Wide AWS
            -----------------------------------
              2008     2007     2006     2005
            -------- -------- -------- --------
   AWS      $ 39,239 $ 38,668 $ 39,150 $ 38,318


           2009 Company-Owned AWS By Year Opened
            -----------------------------------
                                2007
              2009     2008     Opens
              Opens    Opens   & Prior   Total
            -------- -------- -------- --------
Bakery-Cafes    30       35      520      585
   Q1 09    $ 41,922 $ 36,294 $ 37,437 $ 37,380
   Q2 09    $ 35,580 $ 36,485 $ 38,652 $ 38,492
   Q3 09    $ 36,930 $ 36,143 $ 38,861 $ 38,655
   Q4 09    $ 38,057 $ 39,425 $ 41,904 $ 41,605
 2009 YTD   $ 37,618 $ 37,087 $ 39,209 $ 39,050


         2009 Franchise-Operated AWS By Year Opened
           --------------------------------------
                                2007
              2009     2008     Opens
              Opens    Opens   & Prior   Total
            -------- -------- -------- --------
Bakery-Cafes    39       67      689      795
   Q1 09    $ 35,001 $ 33,726 $ 39,746 $ 39,190
   Q2 09    $ 36,703 $ 33,890 $ 40,512 $ 39,859
   Q3 09    $ 35,133 $ 33,748 $ 40,686 $ 39,913
   Q4 09    $ 37,486 $ 36,147 $ 44,234 $ 43,250
 2009 YTD   $ 36,326 $ 34,378 $ 41,291 $ 40,566


       Year-Over-Year Change in Company-Owned AWS and Comp Sales
           ---------------------------------------------
                                2007             Comp
             2009     2008      Opens     AWS    Sales
             Opens  Opens (a)  & Prior   Total   Total
            -------- -------- -------- -------- --------
   Q1 09      N/A     -7.1%      0.3%     0.1%     0.3%
   Q2 09      N/A      2.0%     -0.4%    -0.6%    -0.7%
   Q3 09      N/A     -0.7%      3.7%     3.3%     3.3%
   Q4 09      N/A      6.7%      8.0%     7.5%    -0.2%
 2009 YTD     N/A      1.1%      2.9%     2.6%     0.7%

(a) Change in Company-owned AWS in 2009 from 2008 compares 35 bakery-cafes
in 2009 against 14, 20, 27 and 35 bakery-cafes at the end of the first,
second, third, and fourth quarters of 2008.


     Year-Over-Year Change in Franchise-Operated AWS and Comp Sales
           ---------------------------------------------
                                2007             Comp
             2009     2008      Opens     AWS    Sales
             Opens  Opens (b)  & Prior   Total   Total
            -------- -------- -------- -------- --------
   Q1 09      N/A     -2.8%      0.9%    -0.4%     1.0%
   Q2 09      N/A     -5.0%     -0.2%    -1.5%    -0.2%
   Q3 09      N/A     -3.8%      2.3%     0.9%     2.5%
   Q4 09      N/A      0.2%      6.7%     5.4%    -1.1%
 2009 YTD     N/A     -3.6%      2.4%     1.1%     0.5%

(b) Change in Franchise-operated AWS in 2009 from 2008 compares 67
bakery-cafes in 2009 against 13, 26, 43, and 67 bakery-cafes at the end of
the first, second, third and fourth quarters of 2008.


                               Bakery-Cafe Openings
           --------------------------------------------------------------
           Company  Franchise  Total           Company  Franchise  Total
           -------- -------- --------          -------- -------- --------
   Q1 09       4       10       14      Q1 08     14       13       27
   Q2 09       4       10       14      Q2 08      6       13       19
   Q3 09       9       10       19      Q3 08      7       17       24
   Q4 09      13        9       22      Q4 08      8       24       32
 2009 YTD     30       39       69    2008 YTD    35       67      102


AWS - average weekly sales for the time periods indicated.

Comp Sales - comparable bakery-cafe sales increases for the time period
indicated, which exclude closed locations and are based on sales for
bakery-cafes that have been in operation and owned for at least 18 months.
Comparable bakery-cafe sales also exclude the impact from Paradise
bakery-cafes. The Q4-09 and 2009 YTD Comp Sales compare 13 weeks in 2009 to
14 weeks in 2008, a 53 week fiscal year, and compare 52 weeks in 2009 to 53
weeks in 2008. See Schedule III for further information regarding Comps
Sales.



                           PANERA BREAD COMPANY
         Schedule III - Comparable Bakery-Cafe Sales Information

                     For the 4  For the 5  For the 4  For the 13 For the 52
                       weeks      weeks      weeks      weeks      weeks
                       ended      ended      ended      ended      ended
                      October    December   December   December   December
                      27, 2009   1, 2009    29, 2009   29, 2009   29, 2009
                                               (1)        (1)        (1)
                       -------   -------     -------    -------    -------

Company-owned            8.1%      2.5%      -10.0%      -0.2%       0.7%
Franchise-operated       7.2%      2.0%      -11.4%      -1.1%       0.5%
System-wide              7.6%      2.3%      -10.9%      -0.7%       0.5%


Note: Company-owned comparable bakery-cafe sales percentages are based on
sales from bakery-cafes that have been in operation and Company-owned for
at least 18 months. Franchise-operated comparable bakery-cafe sales
percentages are based on sales from franchised bakery-cafes, as reported by
franchisees, that have been in operation and franchise-operated for at
least 18 months. System-wide comparable bakery-cafe sales percentages are
based on sales at both Company-owned and franchise-operated bakery-cafes
that have been in operation and Company-owned or franchise-operated for at
least 18 months. Acquired Company-owned and franchise-operated bakery-cafe
locations and other restaurant or bakery-cafe concepts are excluded from
comparable bakery-cafe sales until we have held a 100 percent ownership
interest therein for at least 18 months. Comparable bakery-cafe sales
exclude closed locations and currently Paradise Bakery & Café, Inc.
locations.

(1)  The Company's fiscal year ended December 29, 2009 consisted of 52
weeks, while the Company's fiscal year ended December 30, 2008 consisted of
53 weeks. As a result, the Company's sales for the 5 weeks and 14 weeks
ended December 30, 2008 included an additional week of sales as compared to
the comparable periods in 2009. Set forth below is comparable bakery-cafe
sales information comparing the fiscal year 2009 periods listed below to
the comparable periods in fiscal year 2008 adjusted to remove the
additional week ended December 30, 2008 from fiscal year 2008.


                               For the 4     For the 13  For the fiscal
                              weeks ended   weeks ended    year ended
                              December 29,  December 29,  December 29,
                                  2009          2009          2009
                              ------------  ------------  ------------
     Company-owned                8.2%          5.9%          2.3%
     Franchise-operated           6.8%          5.1%          2.2%
     System-wide                  7.4%          5.4%          2.2%



                                                                Schedule IV

                              PANERA BREAD COMPANY
                         EARNINGS PRESS RELEASE DATES



For the Quarter Ended        Press Release Date (After Market Closes)
---------------------        ----------------------------------------
March 30, 2010               April 27, 2010
June 29, 2010                July 27, 2010
September 28, 2010           October 26, 2010

Contact Information

  • Contact:
    Michele Harrison
    Vice President, Investor Relations
    (314-633-4282)