Panera Bread reports 28 per cent revenue boost

By Karen Willmer

- Last updated on GMT

Related tags: Cent, Panera bread, Revenue, Sales

Panera Bread said yesterday second quarter revenues for 2007
increased 28 per cent over the same period last year,
but operating profit fell by 3.4 per cent.

Operating profit was $18.9m (€13.8m) for the quarter compared to $21.4m (€15.6) the previous year. The company said this was due to shifts within the product ranges and the high prices of raw materials. "While second quarter results are somewhat disappointing, we are pleased to see some of our investments in the bakery-cafes pay off with higher comp store sales increases,"​ said chief executive Ron Shaich. Bakery-café sales increased 2.1 per cent during the period, and Panera Bread expects this to increase by 3.6 to 3.9 per cent over the four weeks up to July 24. The company also predicts bakery sales growth of 2.25 to 4.75 per cent following the opening of 39 new bakery-cafes and the acquisition of a further 32 bakery cafes during this last quarter. Bakery-café sales revenue increased from $157m to $209m for the second quarter of 2007, forming 82.9 per cent of the company's total revenues. Bakery-café sales formed 79.7 per cent of total revenue during the same quarter the previous year. "We look forward to continuing our positive sales trends while at the same time addressing the margin issues currently impacting our results,"​ Shaich said. Panera Bread operates 1,027 bakery-cafes across US, 391 are company owned, and 696 franchised, all producing speciality breads and bakery products. The company's focus on the bakery-cafes helped increase revenues, however fresh dough sales to franchises were down 2.1 per cent of total revenue to $26m and revenue from franchise royalties was down to 6.7 per cent of total revenue to $17m.

Related topics: Markets

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