Milling & Baking News Corporate Profiles - November 2013 - (Page 114)

Company Overview Panera Bread Co. Premium products drive growth in transitional year P remium products, including signature sandwiches and a new pasta platform, continue to drive growth at St. Louis-based Panera Bread Co., even as the company experiences transition at the top. In August, founder and chairman Ron Shaich became the sole chief executive officer as co-c.e.o. and president Bill Moreton transitioned to a role as executive vice-chairman due to a family matter. Mr. Shaich had served as sole c.e.o. from May 1994 to May 2010 and co-c.e.o. from January 1988 to May 1994 and from March 2012 until Mr. Moreton's move. "All of us at Panera respect Bill's decision and are pleased that Bill will remain an active partner of ours at Panera," Mr. Shaich said. "In addition, knowing Bill's need to make this decision was a possibility, we are confident that we presently have in place the leadership and capabilities necessary to execute our key initiatives and continue Panera's record of success well into the future." Another personnel change occurred this year, as Roger C. Matthews Jr., formerly a senior relationship banker at Goldman Sachs, became executive vice-president and chief financial officer in March. Amidst the changes, the bakerycafe chain continues to benefit from menu innovation with the successful introductions of pasta and shrimp during the year. But strategies to expand later day parts may have come at the expense of breakfast sales, which fell short of expectations during the second quarter of fiscal 2013. "Indeed, late day comps have been up strongly at Panera for the last two quarters," Mr. Shaich said during a July 24 conference call with analysts. "In fact, if all we looked at was Panera's post 2 p.m. business, we would be exceptionally pleased with the very strong comp growth at Panera. From 2 p.m. to close, we saw comps higher than 5% for the last two quarters. And this growth has been the direct result of our success with pasta and other entrees. "However ... breakfast comps have weakened dramatically for us over the last two quarters." While competitors ramped up Chief executive officer - advertising on a.m. business, Panera said its shift in focus has dragged down 2013 comparable sales. Through the 26 weeks ended June 25, net income climbed 17% to $99 million from $85 million in the same period of the previous year. Total revenues for the 26 weeks increased 12% to $1.2 billion from $1 billion in the same period of the prior year. Pasta, which launched nationally in the last two weeks of the first quarter, has exhibited trial and repeat statistics beyond Panera's expectations, Mr. Shaich said. "Ultimately, our customers are willing to pay for a product that delivers the elevated customer experience they have come to expect at Panera," he said. 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 3% to 5%. As of June 25, 2013, there were 1,708 Panera bakery-cafes. The company expects to open 115 to 125 or more system-wide new units in fiscal 2013. CP Top brands - Panera 2012 total revenues - Ron Shaich 114 \ November 2013 $2.1 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013