Milling & Baking News - February 19, 2013 - 18

Financial Results 

Panera proﬁt up 28% on higher
prices and sales in ﬁscal 2012

per share

ST. LOUIS — Higher prices and bet- a Feb. 6 conference call with financial
ter sales of more profitable menu analysts. “During the fourth quarter
items buoyed earnings at Panera and for the full year, we saw the sigBread Co. in fiscal 2012. Net income in nature sandwich category continue to
the year ended Dec. 25, 2012, totaled perform exceptionally well. Indeed,
$173,448,000, equal to $5.94 per share sales increased year-over-year by 34%
on the common stock, up 28% from in the quarter and 18% for the year.
“The strong growth in the quarter
$135,952,000, or $4.59 per share, in fiscal 2011. Last year’s results included a was primarily the result of the continued success of our roasted turkey
one-time pre-tax charge of $5 million.
Total revenues in fiscal 2012
increased 17% to $2,130,057,000
Panera Bread Co. share price
from $1,822,032,000.
$190
For the fourth quarter ended Dec. 25, net income was
$51,612,000, or $1.77 per share,
$140
up 34% from $38,620,000, or
$1.33 per share, in the same
period a year ago. Revenues
increased 15% to $571,549,000
$90
from $495,765,000.
March
Sept.
March
Sept.
Panera opened 123 new bak2011
2012
ery-cafes (59 company-owned
and 64 franchise-operated) during and avocado BLT sandwich as well as
fiscal 2012, bringing the total num- the introduction of the Big Kid Grilled
ber of bakery-cafes operated sys- Cheese.”
Mr. Shaich said Panera initially
tem-wide to 1,652.
“During 2012, the partnership be- thought the grilled cheese product
tween our supply chain and culinary would take share away from other
team resulted in continued growth in hot sandwiches, but what the comour signature and hot sandwich cate- pany experienced was consumers
gories as well as in our signature salad trading up out of cafe sandwiches
category,” Ron Shaich, president and to the Big Kid Grilled Cheese, which
co-chief executive officer, said during provided check growth.

The Andersons proﬁt declines
from OHIO — Record high in ﬁscaldivision rose 16% to
record earnings 2011. Sales in the ‘11
MAUMEE,
at the Lansing Trade Group contributed to good results within The Andersons’ Grain Group, but overall, earnings at the Maumee-based company
fell 16% in fiscal 2012. Net income
in the year ended Dec. 31, 2012, was
$79,480,000, equal to $4.27 per share
on the common stock, which compared with a record $95,106,000, or
$5.13 per share, in the same period a
year ago. Sales were $5,272,010,000, up
15% from $4,576,331,000.
For the fourth quarter, net income
was $14,990,000, or 80c per share,
down 31% from $21,697,000, or
$1.17 per share, in the same period a
year ago. Net sales increased 29% to
$1,680,641,000 from $1,297,830,000.
The Grain Group’s operating income in fiscal 2012 was $63,597,000,
down 27% from $87,288,000 in fiscal
18 / February 19, 2013 Milling & Baking News

$3,293,632,000 from $2,849,358,000.
“The group had considerably lower
space income in 2012, as a result of the
drought, but an increase in bushels
sold,” The Andersons said. “In 2011,
the group benefited from significant
escalation in wheat basis.”
The Andersons said Lansing Trade
Group turned in its best ever annual
performance in fiscal 2012.
The Ethanol division suffered an
operating loss of $3,720,000 in fiscal
2012, which compared with income of
$23,344,000 in fiscal 2011. The company said the loss reflected significantly
lower ethanol margins resulting from
weak gasoline demand, an oversupply of ethanol, and high corn costs
caused by last year’s drought. Sales in
the division rose 16% to $742,929,000
from $641,546,000.

Panera, following more than two
years of development, will roll out
several pasta offerings late in the first
quarter, Mr. Shaich said. The restaurant chain initially will roll out three
pasta dishes: tortellini alfredo, pesto
sacchettini and rustic penne Bolognese. They will be available in large
and small sizes and will include a half
salad or a cup of soup.
“Our expectation is that the pastas
will help both our lunch and dinner
dayparts,” Mr. Shaich said. “However, let me add one note of caution.
Please, please don’t expect dramatic sales increases from these
new pasta products. Rather, you
should expect our pastas will
serve as a platform for sustained
long-term growth at Panera.”
Looking ahead to fiscal 2013,
Panera has set its full-year 2013
earnings-per-share growth rate at
17% to 19% and company-owned
comparable bakery-cafe sales
growth at 4.5% to 5.5%.
“2012 was our fifth consecutive year of growing our earnings
20% or greater,” said Bill Moreton,
chairman and co-c.e.o. “In 2013, we
are making substantial incremental
investments to lay the foundation
for our growth over the next three to
five years. We believe that our multiyear strategy of continuing to invest
in the quality of our customer experience will continue to drive earnings
growth well into the future.” MBN
“This is definitely one of those years
where our purposeful diversification
paid off,” said Mike Anderson, chief executive officer. “The Rail Group had its
best year ever, due to skillful management of its railcar portfolio. Similarly,
our Plant Nutrient Group had its second record year in a row even though
margins decreased, as they increased
sales volume and prudently managed
their inventory. Our Grain Group also
had good results, in part due to the record earnings of Lansing Trade Group,
even though there were unfavorable
impacts caused by the drought.
“In the last year we demonstrated
our commitment to growth by acquiring New Eezy Grow, Inc., Denison,
Mt. Pulaski, and the majority of the assets of the Green Plains Grain Co. We
also opened our Anselmo, Neb., grain
elevator in August and look forward
to opening a new railcar blast and
paint facility this spring. As we have
in the past, we will continue to focus
on long-term earnings growth.” MBN
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Milling & Baking News - February 19, 2013

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