SOURCE: Panera Bread Company

October 21, 2008 17:22 ET

Panera Bread Reports Third Quarter EPS of $0.45, 22% Growth Over Q3 2007

HIGHLIGHTS

- Operating Profit Up 41% Over Q3 2007

- Comparable System-Wide Bakery-Cafe Sales Increased 3.3% in Q3

- Company-Owned New Unit AWS of $36,505 YTD 2008 (Versus $32,926 YTD 2007)

- Company Reaffirms Q4 2008 EPS Guidance (Up 46% to 54% Over Q4 2007)

- Company Sets 2009 EPS Target at $2.55 to $2.71 (Up 15% to 22% Over 2008)

ST. LOUIS, MO--(Marketwire - October 21, 2008) - Panera Bread Company (NASDAQ: PNRA) today reported net income of $14 million, or $0.45 per diluted share, for the third quarter ended September 23, 2008, which includes a $0.01 per diluted share net charge from a write-down of the Company's investment in the Columbia Strategic Cash Portfolio. These results compare to net income of $12 million, or $0.37 per diluted share, for the third quarter ended September 25, 2007.

For the thirty-nine weeks ended September 23, 2008, net income was $42 million, or $1.38 per diluted share. These results compare to net income of $40 million, or $1.23 per diluted share, for the thirty-nine weeks ended September 25, 2007.

The Company's third quarter and year-to-date fiscal 2008 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 Weeks Ended
                                    ---------------------------
                                    September 23, September 25, Percentage
                                        2008          2007        Change
                                    ------------- ------------- ----------

Total revenue                       $     315,195 $     273,213         15%
Operating profit                    $      22,721 $      16,117         41%
Net income                          $      13,740 $      11,943         15%
Diluted earnings per share          $        0.45 $        0.37         22%
Shares used in diluted EPS                 30,557        32,163



                                      For the 39 Weeks Ended
                                    ---------------------------
                                    September 23, September 25, Percentage
                                        2008          2007        Change
                                    ------------- ------------- ----------

Total revenue                       $     941,041 $     765,847         23%
Operating profit                    $      71,038 $      58,429         22%
Net income                          $      41,887 $      39,622          6%
Diluted earnings per share          $        1.38 $        1.23         12%
Shares used in diluted EPS                 30,383        32,210

Third Quarter 2008 Results & Business Review

Throughout 2008, the Company has been focused on executing its plan to drive overall return on capital through margin improvement, while minimizing transaction falloff and increasing returns on incremental invested capital, all while driving long term concept differentiation. In the third quarter of 2008, the Company's success with this plan was evidenced by the Company's performance on key metrics.

In the third quarter of 2008, the Company generated significant margin improvement through its category management initiatives despite significant inflation in its core commodities, especially wheat. Third quarter 2008 operating profit increased 41 percent and operating margin increased 130 basis points compared to the third quarter of 2007. Bakery-cafe profit and margins increased 23 percent and 80 basis points, respectively, compared to the prior year.

In spite of considerable consumer headwinds, comparable bakery-cafe sales in the third quarter of 2008 increased 3.0% in Company-owned bakery-cafes and 3.5% in franchise-operated bakery-cafes. The components of these third quarter 2008 Company-owned comparable sales results were approximately 6.5% of year-over-year price increases when compared to the third quarter of 2007, negative transaction growth of approximately (3.2%), and negative mix impact of approximately (0.3%).

Average weekly sales ("AWS") for Company-owned new units in the third quarter of 2008 was $36,383 compared to $33,645 in the third quarter of 2007. AWS for Company-owned new units year-to-date through the third quarter of 2008 was $36,505, compared to $32,926 in the first three quarters of 2007. Along with improved margins, improvement in new unit AWS is a key driver of improved return on incremental invested capital. A schedule of the Company's third quarter 2008 AWS, along with a schedule of comparable bakery-cafe sales by period, are attached as Schedule II and III, respectively.

During the third quarter of 2008, the Company opened 24 new bakery-cafes system-wide, resulting in 1,294 bakery-cafes open system-wide as of September 23, 2008. The breakdown of bakery-cafes between Company-owned and franchise-operated is as follows:

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

Bakery-cafes as of June 24, 2008                  548        722      1,270
Bakery-cafes opened                                 7         17         24
Bakery-cafes closed                                 -          -          -
Bakery-cafes as of September 23, 2008             555        739      1,294

Fourth Quarter and Full Year 2008 Targets and 2009 Business Outlook

Fourth Quarter Targets

The Company today is reaffirming its earnings per diluted share target for the fourth quarter of 2008 at $0.82 to $0.86 per diluted share, compared to earnings per diluted share of $0.56 in the fourth quarter of 2007. The target for the fourth quarter of 2008 reflects an increase in EPS of 46% to 54% from the fourth quarter of 2007.

In terms of key metrics, starting with factors impacting margins, for the fourth quarter of 2008 wheat is projected to average $12.00 per bushel (inclusive of wheat futures and basis) compared to $5.80 per bushel in the fourth quarter of 2007. The Company has now increased dough prices currently sufficient to match the inflation in the cost of wheat, offsetting the negative impact on profit from wheat cost. In addition, the Company expects to continue to benefit from its ongoing margin improvement initiatives and operating leverage. The Company also expects to benefit from year-over-year retail check increases of approximately 5.0% in the fourth quarter of 2008 (6.0% price increases offset by 1.0% of negative mix).

Based on what has become a very fragile consumer environment, the Company now expects negative transaction growth in the fourth quarter of 2008 ranging from (4.0%) to (2.0%). The result is that the Company is now targeting comparable Company-owned bakery-cafe sales growth of 1.0% to 3.0% in the fourth quarter of 2008. (Investors will note that this target for sales growth is lower than prior guidance, while the earnings target remains the same. Accordingly, the Company now believes it will be a greater challenge to achieve the high-end of its fourth quarter target of 46% to 54% earnings per diluted share growth).

The Company is today announcing that through the first 27 days of the fourth quarter of fiscal 2008 (September 24, 2008 to October 20, 2008), comparable bakery-cafe sales for Company-owned bakery-cafes have grown approximately 2.1% (net of negative transaction growth of approximately 3.4%) and comparable bakery-cafe sales for franchise-operated bakery-cafes have grown approximately 3.0%.

Finally, the Company continues to forecast new unit average weekly sales in the range of $36,000 to $38,000 for the fourth quarter of 2008 and expects to finish the fiscal year having developed approximately 100 new bakery-cafes.

Full Year 2008 Targets

Based upon the fourth quarter 2008 target being affirmed today, the Company now expects its diluted earnings per share for fiscal 2008 to be $2.20 to $2.24 per diluted share. If this full year target is met, it represents a 23% to 25% increase over fiscal 2007 earnings per diluted share of $1.79.

2009 Business Outlook

The Company is today setting its initial target for fiscal 2009 EPS consistent with current street estimates of $2.55 to $2.71, which would represent an increase of 15% to 22% in year-over-year EPS.

Given the extraordinary volatility in our economy, it is increasingly difficult at this time to project fiscal 2009 earnings. However, the Company is comfortable setting targets at this level, as many of its cost inputs are already locked in and clearly understood.

The Company has currently purchased all of its requirements for wheat for fiscal 2009 at an all-in cost of $9.50 per bushel, consisting of a futures cost of approximately $8.50 per bushel and basis cost of approximately $1.00 per bushel. The Company is now projecting inflation in other costs of approximately 4.0% and retail price increases of approximately 3.5%.

The Company is targeting approximately 80 to 90 new unit openings in fiscal 2009. Average weekly sales for Company-owned new units is assumed to be $36,000 to $38,000 in fiscal 2009.

The biggest area of uncertainty in fiscal 2009 is the impact and the length of the expected recession. Our fiscal 2009 target presently assumes negative transaction growth of (4.0%) to (2.0%) and comparable Panera Company bakery-cafe sales growth of 0% to 2.0%.

Concluding Comment

Chairman and Chief Executive Officer Ron Shaich commented: "Our plan to improve margins while minimizing transaction falloff and to strengthen return on incremental invested capital, all while driving long term concept differentiation, continues to deliver. We're extremely pleased with our third quarter results in which operating profit increased 41% year-over-year and EPS grew 22%. Despite the impending recession, we are confident that Panera is well positioned to deliver on its EPS growth target of 46% to 54% in the fourth quarter of 2008 and to again deliver industry-leading performance in 2009. Given that Panera's concept continues to resonate strongly with customers and generate equally strong cash flow, we believe that the Company, anchored by its debt-free balance sheet, is ready and able to seize opportunities created by the impending recession to further strengthen Panera for 2010 and beyond."

Notes

The Company will discuss third quarter 2008 results, preliminary comparable bakery-cafe sales results for the first twenty-seven days of the fiscal 2008 fourth quarter, and fourth quarter and full year fiscal 2008 targets and fiscal 2009 business outlook in a conference call that will be broadcast on the Internet at 8:30 A.M. Eastern Daylight Time on Wednesday, October 22, 2008. To access the call or view a copy of this release, go to http://www.panerabread.com/investor. Access to the call and the release will be archived for one year. A schedule of preliminary earnings release dates for fiscal year 2009 is attached as Schedule IV.

Included above are franchise-operated and system-wide bakery-cafe sales information. System-wide sales is a non-GAAP financial measure which includes sales at all Company-owned bakery-cafes and franchise-operated bakery-cafes, as reported by franchisees. Management uses system-wide sales information internally in connection with store development decisions, planning, and budgeting analyses. Management believes system-wide sales information is useful in assessing consumer acceptance of the Company's brand and facilitates an understanding of financial performance as the Company's franchisees pay royalties and contribute to advertising pools based on a percentage of their sales.

Panera Bread Company owns and franchises 1,222 bakery-cafes under the Panera Bread® and Saint Louis Bread Co.® names as of September 23, 2008. With its identity rooted in handcrafted, fresh-baked, artisan bread, Panera Bread is committed to providing great tasting, quality food that people can trust. Highlighted by antibiotic free chicken, whole grain bread, select organic and all-natural ingredients and a menu with zero grams added trans fat, Panera's bakery-cafe selection offers flavorful, wholesome offerings. The 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 the country, guests are enjoying Panera's warm and welcoming environment featuring comfortable gathering areas, relaxing decor, and free internet access provided through a managed WiFi network. At the close of each day, Panera Bread bakery-cafes donate bread and baked goods to community organizations in need. Additional information is available on the Company's website, http://www.panerabread.com. Panera also holds a 51% interest in Paradise Bakery & Café, Inc., owner and franchisor of 72 bakery-cafes as of September 23, 2008.

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", "anticipates", 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; effects and outcomes of pending or future legal claims involving the company; spending patterns and demographic trends; new legislation and governmental regulations or changes in legislation and regulations and the consequent impact on our business; 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 the acquisition of franchise-operated bakery-cafes; 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 25, 2007 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 Weeks Ended
                                                  -------------------------
                                                   September    September
                                                    23, 2008     25, 2007
                                                  ------------ -----------

Revenues:
  Bakery-cafe sales                               $    268,486 $   232,244
  Franchise royalties and fees                          18,144      16,286
  Fresh dough sales to franchisees                      28,565      24,683
                                                  ------------ -----------
    Total revenue                                      315,195     273,213
Costs and expenses:
  Bakery-cafe expenses:
    Cost of food and paper products                     81,556      72,526
    Labor                                               86,639      75,545
    Occupancy                                           22,750      18,580
    Other operating expenses                            36,934      32,487
                                                  ------------ -----------
      Total bakery-cafe expenses                       227,879     199,138
  Fresh dough cost of sales to franchisees              26,982      22,648
  Depreciation and amortization                         16,794      14,990
  General and administrative expenses                   19,951      18,412
  Pre-opening expenses                                     868       1,908
                                                  ------------ -----------
    Total costs and expenses                           292,474     257,096
                                                  ------------ -----------
Operating profit                                        22,721      16,117
Interest expense                                           225          28
Other (income) expense, net                                461        (145)
                                                  ------------ -----------
Income before minority interest and income taxes        22,035      16,234
Income (loss) allocable to minority interest               139        (312)
                                                  ------------ -----------
Income before income taxes                              21,896      16,546
Income taxes                                             8,156       4,603
                                                  ------------ -----------
    Net income                                    $     13,740 $    11,943
                                                  ============ ===========

Per share data:
  Net income per share
    Basic                                         $       0.46 $      0.38
                                                  ============ ===========
    Diluted                                       $       0.45 $      0.37
                                                  ============ ===========

Weighted average shares of common and
 common equivalent shares outstanding:
  Basic                                                 30,124      31,812
                                                  ============ ===========
  Diluted                                               30,557      32,163
                                                  ============ ===========

Beginning in the first quarter of 2008, the Company changed the
classification of certain amounts between fresh dough cost of sales to
franchisees and cost of food and paper products.  The Company has
reclassified prior periods in order to conform to the current presentation.




                                                 Schedule I (continued)

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

                                                   For the 39 Weeks Ended
                                                  -------------------------
                                                   September    September
                                                    23, 2008     25, 2007
                                                  ------------ -----------

Revenues:
  Bakery-cafe sales                               $    803,328 $   638,988
  Franchise royalties and fees                          53,682      49,555
  Fresh dough sales to franchisees                      84,031      77,304
                                                  ------------ -----------
    Total revenue                                      941,041     765,847
Costs and expenses:
  Bakery-cafe expenses:
    Cost of food and paper products                    243,895     194,671
    Labor                                              256,843     205,405
    Occupancy                                           66,334      50,473
    Other operating expenses                           107,098      87,807
                                                  ------------ -----------
      Total bakery-cafe expenses                       674,170     538,356
  Fresh dough cost of sales to franchisees              80,382      69,060
  Depreciation and amortization                         49,168      42,387
  General and administrative expenses                   63,409      52,928
  Pre-opening expenses                                   2,874       4,687
                                                  ------------ -----------
    Total costs and expenses                           870,003     707,418
                                                  ------------ -----------
Operating profit                                        71,038      58,429
Interest expense                                         1,398         199
Other (income) expense, net                                806        (731)
                                                  ------------ -----------
Income before minority interest and income taxes        68,834      58,961
Income (loss) allocable to minority interest             1,016        (120)
                                                  ------------ -----------
Income before income taxes                              67,818      59,081
Income taxes                                            25,931      19,459
                                                  ------------ -----------
    Net income                                    $     41,887 $    39,622
                                                  ============ ===========

Per share data:
  Net income per share
    Basic                                         $       1.40 $      1.25
                                                  ============ ===========
    Diluted                                       $       1.38 $      1.23
                                                  ============ ===========

Weighted average shares of common and
 common equivalent shares outstanding:
  Basic                                                 29,991      31,684
                                                  ============ ===========
  Diluted                                               30,383      32,210
                                                  ============ ===========

Beginning in the first quarter of 2008, the Company changed the
classification of certain amounts between fresh dough cost of sales to
franchisees and cost of food and paper products.  The Company has
reclassified prior periods in order to conform to the current presentation.



                                                 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 Weeks Ended
                                                  ------------------------
                                                   September    September
                                                    23, 2008     25, 2007
                                                  -----------  -----------

Revenues:
  Bakery-cafe sales                                      85.2%        85.0%
  Franchise royalties and fees                            5.8          6.0
  Fresh dough sales to franchisees                        9.1          9.0
                                                  -----------  -----------
      Total revenue                                     100.0%       100.0%
Costs and expenses:
  Bakery-cafe expenses (1):
    Cost of food and paper products                      30.4%        31.2%
    Labor                                                32.3         32.5
    Occupancy                                             8.5          8.0
    Other operating expenses                             13.8         14.0
                                                  -----------  -----------
      Total bakery-cafe expenses                         84.9         85.7
  Fresh dough cost of sales to franchisees (2)           94.5         91.8
  Depreciation and amortization                           5.3          5.5
  General and administrative expenses                     6.3          6.7
  Pre-opening expenses                                    0.3          0.7
                                                  -----------  -----------
    Total costs and expenses                             92.8         94.1
                                                  -----------  -----------
Operating profit                                          7.2          5.9
Interest expense                                          0.1            -
Other (income) expense, net                               0.1         (0.1)
                                                  -----------  -----------
Income before minority interest and income taxes          6.9          6.0
Income (loss) allocable to minority interest                -         (0.1)
                                                  -----------  -----------
Income before income taxes                                6.9          6.1
Income taxes                                              2.6          1.7
                                                  -----------  -----------
Net income                                                4.4%         4.4%
                                                  ===========  ===========


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

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

Beginning in the first quarter of 2008, the Company changed the
classification of certain amounts between fresh dough cost of sales to
franchisees and cost of food and paper products.  The Company has
reclassified prior periods in order to conform to the current presentation.



                                                 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 39 Weeks Ended
                                                  ------------------------
                                                   September    September
                                                    23, 2008     25, 2007
                                                  -----------  -----------

Revenues:
  Bakery-cafe sales                                      85.4%        83.4%
  Franchise royalties and fees                            5.7          6.5
  Fresh dough sales to franchisees                        8.9         10.1
                                                  -----------  -----------
      Total revenue                                     100.0%       100.0%
Costs and expenses:
  Bakery-cafe expenses (1):
    Cost of food and paper products                      30.4%        30.5%
    Labor                                                32.0         32.1
    Occupancy                                             8.3          7.9
    Other operating expenses                             13.3         13.7
                                                  -----------  -----------
      Total bakery-cafe expenses                         83.9         84.3
  Fresh dough cost of sales to franchisees (2)           95.7         89.3
  Depreciation and amortization                           5.2          5.5
  General and administrative expenses                     6.7          6.9
  Pre-opening expenses                                    0.3          0.6
                                                  -----------  -----------
    Total costs and expenses                             92.5         92.4
                                                  -----------  -----------
Operating profit                                          7.5          7.6
Interest expense                                          0.1            -
Other (income) expense, net                               0.1         (0.1)
                                                  -----------  -----------
Income before minority interest and income taxes          7.3          7.7
Income (loss) allocable to minority interest              0.1            -
                                                  -----------  -----------
Income before income taxes                                7.2          7.7
Income taxes                                              2.8          2.5
                                                  -----------  -----------
Net income                                                4.5%         5.2%
                                                  ===========  ===========


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

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

Beginning in the first quarter of 2008, the Company changed the
classification of certain amounts between fresh dough cost of sales to
franchisees and cost of food and paper products.  The Company has
reclassified prior periods in order to conform to the current presentation.




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


                          Historical System-Wide AWS
               2007     2006     2005     2004     2003     2002
              ------- -------  -------  -------  -------  -------
AWS           $38,668 $39,150  $38,318  $36,008  $35,617  $35,388

                2008 Company-Owned AWS By Year Opened
              ------------------------------------------
                                          2005
                2008    2007     2006    Opens
               Opens   Opens    Opens   & Prior   Total
              ------- -------  -------  -------  -------
Bakery-Cafes       27      89       77      362      555
   Q1 08      $39,083 $34,278  $35,594  $38,479  $37,379
   Q2 08      $35,776 $34,967  $37,111  $40,137  $38,734
   Q3 08      $36,383 $33,007  $35,866  $38,914  $37,424
   Q4 08
  2008 YTD    $36,505 $33,995  $36,190  $39,175  $37,830

              2008 Franchise-Operated AWS By Year Opened
              ------------------------------------------
                                          2005
                2008    2007     2006    Opens
               Opens   Opens    Opens   & Prior   Total
              ------- -------  -------  -------  -------
Bakery-Cafes       43      81       83      532      739
   Q1 08      $34,693 $34,891  $34,019  $40,895  $39,330
   Q2 08      $35,690 $35,869  $35,389  $42,153  $40,464
   Q3 08      $35,090 $35,153  $35,051  $41,211  $39,550
   Q4 08
  2008 YTD    $35,256 $35,304  $34,819  $41,419  $39,783

            Year-Over-Year Change in Company-Owned AWS and Comp Sales
            ---------------------------------------------------------
                                          2005             Comp
                2008    2007     2006    Opens     AWS     Sales
               Opens  Opens(a)  Opens   & Prior   Total    Total
              ------- -------  -------  -------  -------  -------
   Q1 08          N/A     9.2%     6.1%     2.1%     1.5%     3.3%
   Q2 08          N/A     8.8%    10.0%     5.4%     4.5%     6.5%
   Q3 08          N/A    -1.9%     5.9%     1.9%     0.8%     3.0%
   Q4 08          N/A
  2008 YTD        N/A     3.2%     7.3%     3.1%     2.2%     4.3%

(a) Change in Company-owned AWS in 2008 from 2007 compares 89 bakery-cafes
in 2008 against 14, 31, and 50 bakery-cafes at the end of the first,
second, and third quarters of 2007, respectively.

         Year-Over-Year Change in Franchise-Operated AWS and Comp Sales
         --------------------------------------------------------------
                                          2005             Comp
                2008    2007     2006    Opens     AWS     Sales
               Opens  Opens(b)  Opens   & Prior   Total    Total
              ------- -------  -------  -------  -------  -------
   Q1 08          N/A   -16.7%     3.0%     1.6%     0.0%     1.7%
   Q2 08          N/A    -3.7      9.5%     4.9%     3.6%     4.8%
   Q3 08          N/A     1.2      4.4%     3.4%     2.2%     3.5%
   Q4 08          N/A
  2008 YTD        N/A    -2.7      5.6%     3.3%     1.9%     3.4%

(b) Change in Franchise-operated AWS in 2008 from 2007 compares 81
bakery-cafes in 2008 against 18, 40, and 56 bakery-cafes at the end of
the first, second, and third quarters of 2007, respectively.

                                   Bakery-Cafe Openings
              -------------------------------------------------------------
              Company Franchise  Total           Company  Franchise   Total
              ------- -------  -------           -------  -------  --------
   Q1 08           14      13       27    Q1 07       14       17        31
   Q2 08            6      13       19    Q2 07       17       22        39
   Q3 08            7      17       24    Q3 07       19       16        35
   Q4 08                                  Q4 07       39       25        64
  2008 YTD         27      43       70   2007 YTD     89       80       169

Note: Bakery-cafe sales, operating weeks, AWS and bakery-cafe openings
metrics include activity for Paradise Bakery & Café prospectively from the
acquisition date of February 1, 2007. The 2007 bakery-cafe openings do not
include one Paradise franchise-operated bakery-cafe which opened in January
2007.

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.



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


                     For the 4  For the 5  For the 4   For the    For the
                       weeks      weeks      weeks    13 weeks   39 weeks
                       ended      ended      ended      ended      ended
                     July 22,     August   September  September  September
                       2008     26, 2008   23, 2008   23, 2008   23, 2008
                     ---------  ---------  ---------  ---------  ---------
Company-owned              3.7%       3.0%       2.4%       3.0%       4.3%
Franchise-operated         4.0%       3.5%       3.2%       3.5%       3.4%

Note: Comparable bakery-cafe sales presented above exclude the impact from
Paradise bakery-cafes.




                                                            Schedule IV

                           PANERA BREAD COMPANY
                        EARNINGS PRESS RELEASE DATES


For the Quarter Ended            Press Release Date (After Market Closes)
---------------------            ----------------------------------------
December 30, 2008                February 12, 2009
March 31, 2009                   April 28, 2009
June 30, 2009                    July 28, 2009
September 29, 2009               October 27, 2009