HIGHLIGHTS
- Second quarter diluted EPS target raised to $0.48 to $0.50 per diluted share
- Second quarter comparable bakery-cafe sales target raised to 6.1% to 6.4%
ST. LOUIS, June 17 /PRNewswire-FirstCall/ -- Panera Bread Company(Nasdaq: PNRA) today announced that it is increasing its fiscal second quarter2008 earnings per diluted share target to $0.48 to $0.50 from its previouslyannounced target of $0.40 to $0.44 per diluted share. The increase is drivenby projected company-owned comparable bakery-cafe sales growth of 6.1% to 6.4%(versus its previously targeted range of 5% to 6%), and better than expectedmargin improvement on higher growth in gross profit per transaction.
The Company also announced that with the continuing rise in gasolineprices, the Company expects an incremental $(0.02) to $(0.03) per dilutedshare of negative impact on the previously announced earnings per dilutedshare target range for the second half of 2008. The Company will update itssecond half targets in its earnings report to be released on July 22, 2008.
Additionally, the Company announced today that it has locked inapproximately 95% of its fiscal first and second quarter 2009 wheatrequirements at a total cost (futures cost + basis cost) of approximately$10.00 per bushel versus the approximately $15.00 per bushel paid by theCompany on the average for the same period in 2008. The Company has not lockedits requirements for the third and fourth fiscal quarters of 2009 becausesuppliers are not offering commitments on basis for that time period. Further,although the Company expects to benefit from the year-over-year decrease inwheat costs in 2009, the Company also notes that part of that benefit will beoffset by higher commodity costs, notably proteins, dairy, and packaging, andthe increasing cost of gasoline.
Tomorrow, the Company's Chief Financial Officer, Jeff Kip, will bepresenting at the William Blair Growth Stock Conference at the Four SeasonsHotel in Chicago, Illinois.
Panera Bread Company owns and franchises 1,185 bakery-cafes under thePanera Bread(R) and Saint Louis Bread Co.(R) names as of March 25, 2008. Withits identity rooted in handcrafted, fresh-baked, artisan bread, Panera Breadis committed to providing great tasting, quality food that people can trust.Highlighted by antibiotic free chicken, whole grain bread, select organic andall-natural ingredients and a menu with zero grams added trans fat, Panera'sbakery-cafe selection offers flavorful, wholesome offerings. The menu includesa wide variety of year-round favorites, complemented by new items introducedseasonally with the goal of creating new standards in everyday food choices.In neighborhoods across the country, guests are enjoying Panera's warm andwelcoming environment featuring comfortable gathering areas, relaxing decor,and free internet access provided through a managed WiFi network. At the closeof each day, Panera Bread bakery-cafes donate bread and baked goods tocommunity organizations in need. Additional information is available on theCompany's website, http://www.panerabread.com. Panera also holds a 51%interest in Paradise Bakery & Cafe, Inc., owner and franchisor of 67bakery-cafes as of March 25, 2008.
Matters discussed in this news release, including any discussion orimpact, express or implied, on the Company's anticipated growth, operatingresults, and future earnings per share, contain forward-looking statementswithin the meaning of Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. These statements are oftenidentified by the words 'believe', 'positioned', 'estimate', 'project','target', 'continue', 'intend', 'expect', 'future', 'anticipates', and similarexpressions. All forward-looking statements included in this release are madeonly as of the date of this release, and we do not undertake any obligation topublicly update or correct any forward-looking statements to reflect events orcircumstances 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. TheCompany's actual results could differ materially from those set forth in theforward-looking statements due to known and unknown risks and uncertaintiesand could be negatively impacted by a number of factors. These factorsinclude, but are not limited to, the following: inability to execute ourgrowth strategy, including, among other things, variations in the number,timing, and successful nature of Company-owned and franchise-operatedbakery-cafe openings and continued successful operation of bakery-cafes;failure to comply with government regulations; loss of a member of seniormanagement; inability to recruit qualified personnel; failure or inability toprotect our brand, trademarks, or other proprietary rights; competition;rising insurance costs; disruption in our supply chain or increases iningredient, product, or other supply costs; disruptions or supply issues inour fresh dough facilities; health concerns about the consumption of certainproducts; complaints and litigation; risks associated with the acquisition offranchise-operated bakery-cafes; other factors, some of which may be beyondour control, effecting our operating results; and other factors that mayeffect restaurant owners or retailers in general. These and other risks arediscussed from time to time in the Company's SEC reports, including its Form10-K for the year ended December 25, 2007 and its quarterly reports on Form10-Q.
SOURCE Panera Bread Company
