SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

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Panera Bread Company Reports Q2 2014 Diluted EPS of $1.82

ST. LOUIS, MO -- (Marketwired) -- 07/29/14 -- Panera Bread Company (NASDAQ: PNRA)

HIGHLIGHTS

  • Q2 2014 Revenue increased 7% to $631 million
  • Q2 2014 Company-owned comparable net bakery-cafe transactions up 0.4%
  • Q2 2014 Company-owned comparable net bakery-cafe sales up 0.1%
  • Q3 2014 (first 27 days) Company-owned comparable net bakery-cafe sales up 2.0%
  • YTD 2014 System-wide new bakery-cafe AWS of $50,738
  • Q3 2014 EPS target of $1.40 to $1.46
  • FY 2014 EPS target revised to $6.65 to $6.80

Panera Bread Company (NASDAQ: PNRA) today reported net income of $49 million, or $1.82 per diluted share, for fiscal Q2 2014, which included a $3.2 million, or $0.08 per diluted share, benefit from a favorable resolution of an insurance coverage matter. The fiscal Q2 2014 results compare to net income of $51 million, or $1.74 per diluted share, for fiscal Q2 2013.

For the twenty-six weeks ended July 1, 2014, net income was $92 million, or $3.36 per diluted share. These results compare to net income of $99 million, or $3.38 per diluted share, for the twenty-six weeks ended June 25, 2013.

The Company's fiscal Q2 2014 consolidated statements of comprehensive income and margin analyses are attached to this release as Schedule I. The following table sets forth, for the periods indicated, certain items included in the Company's consolidated statements of comprehensive income (in thousands, except per share data and percentages):


                                        For the 13 Weeks Ended
                                     ---------------------------
                                                                 Percentage
                                      July 1, 2014 June 25, 2013   Change
                                     ------------- ------------- ----------

Total revenue                             $631,055      $589,011          7%
Net income                                 $49,192       $51,042         -4%
Diluted earnings per share                   $1.82         $1.74          5%
Shares used in diluted EPS                  27,086        29,287



                                        For the 26 Weeks Ended
                                     ---------------------------
                                                                 Percentage
                                      July 1, 2014 June 25, 2013   Change
                                     ------------- ------------- ----------

Total revenue                           $1,236,808    $1,150,790          7%
Net income                                 $91,587       $99,159         -8%
Diluted earnings per share                   $3.36         $3.38         -1%
Shares used in diluted EPS                  27,247        29,308


Fiscal Q2 2014 Results and Business Review

Comparable Net Bakery-Cafe Sales Growth

In fiscal Q2 2014, on a calendar basis, Company-owned comparable net bakery-cafe sales increased 0.1%, franchise-operated comparable net bakery-cafe sales decreased 0.2%, and system-wide comparable net bakery-cafe sales were flat compared to the comparable period in fiscal 2013. The Company estimates that fiscal Q2 2014 Company-owned comparable net bakery-cafe sales results were negatively impacted by approximately 40 basis points from the shift of the Easter holiday from calendar Q1 2013 to calendar Q2 2014. Adjusting for this shift in Easter, Company-owned comparable net bakery-cafe sales for fiscal Q2 2014 are estimated to have been up 0.5%.

The Company-owned comparable net bakery-cafe sales increase of 0.1% on a calendar basis in fiscal Q2 2014 was comprised of year-over-year positive transaction growth of 0.4% and average check decline of 0.3%. This represents the first quarter of positive transaction growth for Company-owned bakery-cafes since fiscal Q3 2012. After adjusting for the Easter holiday shift, fiscal Q2 2014 transactions were up approximately 0.8%. Average check decline was comprised of negative mix impact of approximately 0.9%, partially offset by price growth of approximately 0.6%.

For the first 27 days of fiscal Q3 2014, Company-owned comparable net bakery-cafe sales growth on a calendar basis was approximately 2.0%.

The Company believes that the calendar basis comparison better reflects the performance of the business as it eliminates the impact of the extra week in fiscal 2013 and compares consistent calendar weeks. Note that on a fiscal basis, Company-owned comparable net bakery-cafe sales for fiscal Q2 2014 also increased 0.1%. A schedule of comparable net bakery-cafe sales information is attached to this release as Schedule III.

Operating Margin

In fiscal Q2 2014, the Company experienced a decline in operating margin of approximately 250 basis points compared to fiscal Q2 2013. This decline was primarily the result of continued investments related to key initiatives designed to improve the Company's guest experience, operational capabilities and technology infrastructure, as well as higher food and marketing expenses.

New Bakery-Cafe Development and AWS

During fiscal Q2 2014, the Company opened 10 new bakery-cafes and its franchisees opened nine new bakery-cafes. As a result, there were 1,818 bakery-cafes open system-wide as of July 1, 2014.


                                                 Franchise-
                                 Company-owned    operated     Total System
                                 ------------- --------------  ------------
Bakery-cafes as of April 1, 2014           881            919         1,800
Bakery-cafes opened                         10              9            19
Bakery-cafes closed                         --             (1)           (1)
                                 ------------- --------------  ------------
Bakery-cafes as of July 1, 2014            891            927         1,818
                                 ============= ==============  ============


Average weekly sales ("AWS") for Company-owned "Class of 2014" bakery-cafes through fiscal Q2 2014 was $48,300 compared to $50,983 in the same period of fiscal 2013. AWS for franchise-operated "Class of 2014" bakery-cafes through fiscal Q2 2014 was $53,882 compared to $49,855 in the same period of fiscal 2013. AWS for Company-owned "Class of 2014" traditional bakery-cafes through fiscal Q2 2014 was $50,038 compared to $51,630 in the same period of fiscal 2013. AWS for Company-owned "Class of 2014" non-traditional bakery-cafes through fiscal Q2 2014 was $36,747 compared to $48,286 in the same period of fiscal 2013. Non-traditional bakery-cafes refers to a range of alternate formats that the Company believes will allow it to more deeply penetrate existing and new territories with a range of different formats.

A schedule of fiscal Q2 2014 AWS is attached to this release as Schedule II.

Use of Capital

On June 5, 2014, the Company's Board of Directors approved a new three year share repurchase authorization of up to $600 million and terminated the prior repurchase authorization. During fiscal Q2 2014, under the share repurchase authorizations, the Company repurchased 325,030 shares at an average price of $153.80 per share for an aggregate purchase amount of approximately $50 million. The total fiscal Q2 2014 share repurchases had a nominal impact on the Company's fiscal Q2 2014 earnings per diluted share. The Company has approximately $588 million remaining under the current $600 million repurchase authorization as of fiscal Q2 2014.

Fiscal Q3 and Q4 2014 Outlook

The Company is targeting fiscal Q3 2014 diluted earnings per share of $1.40 to $1.46, representing an increase of 4% to 8% in fiscal Q3 2014 versus fiscal Q3 2013 excluding the impact of favorable tax-related adjustments of $0.13 per diluted share in fiscal Q3 2013.

The Company is targeting fiscal Q4 2014 diluted earnings per share of $1.89 to $1.98, representing an increase of 3% to 8% in fiscal Q4 2014 versus fiscal Q4 2013 excluding the estimated $0.13 per diluted share benefit from an additional operating week, as fiscal Q4 2013 was comprised of 14 weeks.

The fiscal Q3 and Q4 2014 targets assume the Company will continue to make investments in key initiatives consistent with its strategic plan throughout fiscal 2014. These targets also include the Company's expectation that it will continue to repurchase shares consistently throughout the year.

Full Year Fiscal 2014 Outlook

Diluted EPS Target

The Company is revising its target range for fiscal 2014 earnings per diluted share to $6.65 to $6.80 as a result of lower than expected growth in average check as well as higher than expected input costs.

This full year fiscal 2014 diluted earnings per share target range is based on the following key assumptions:

Comparable Net Bakery-Cafe Sales Growth

The targeted range for the Company's fiscal 2014 Company-owned comparable net bakery-cafe sales growth is revised to 0.0% to 1.5%. The Company continues to expect both comparable net bakery-cafe sales growth and transaction growth to strengthen in the second half of fiscal 2014 as a result of the timing and momentum of initiatives underway. As a result, the Company continues to expect that full year fiscal 2014 will include positive growth in transactions.

Operating Margin

For fiscal 2014, the Company now expects operating margin will be down 135 to 185 basis points when compared to fiscal 2013. This target reflects more modest comparable net bakery-cafe sales growth, the full year impact of the key initiatives and related investments that are underway and higher input costs.

New Bakery-Cafe Development and AWS

The Company is maintaining its previous target of 115 to 125 system-wide new bakery-cafe openings in fiscal 2014 and its average weekly net sales performance target for new Company-owned bakery-cafes of $41,000 to $43,000 for fiscal 2014.

Concluding Comment

Ron Shaich, Chairman and CEO, commented, "In Q2 and into Q3, we have seen success against the near term goal we set for ourselves: growing transactions. This gives us confidence in the potency of our plan. While our average check declined modestly in Q2, primarily as a result of mix, we expect this will remain only a shorter-term drag. Looking long term, we remain confident in the initiatives underway. We believe they will further improve our guest experience and ensure we have the operational capabilities, technology infrastructure, and the food and marketing innovation necessary to compete and grow in a rapidly evolving marketplace. While we know our strategic plan and initiatives will require significant investment in 2014 and 2015, we continue to believe they will create the foundation for expanded earnings growth well into the future."

Notes:

The Company will host a conference call that will be broadcast on the Internet at 8:30 A.M. Eastern Time on Wednesday, July 30, 2014 to discuss the fiscal Q2 2014 results, preliminary comparable net bakery-cafe sales results for the first 27 days of fiscal Q3 2014, and earnings targets and business outlook for the third and fourth quarters and full year fiscal 2014. To access the call or view a copy of this release, go to http://www.panerabread.com/investor. Access to the call will be made available for 14 days, and the release will be archived for one year.

The Company includes in this release information on Company-owned, franchise-operated, and system-wide comparable net bakery-cafe sales percentages. Company-owned comparable net bakery-cafe sales percentages are based on net sales from Company-owned bakery-cafes included in base store bakery-cafes. Franchise-operated comparable net bakery-cafe sales percentages are based on net sales from franchised bakery-cafes, as reported by franchisees, that are included in base store bakery-cafes. Acquired Company-owned and franchise-operated bakery-cafes and other restaurant or bakery-cafe concepts are included in the Company's comparable net bakery-cafe sales percentages after it has acquired a 100 percent ownership interest and if such acquisition occurred prior to the first day of the Company's prior fiscal year. Comparable net bakery-cafe sales exclude closed locations.

The Company does not record franchise-operated net bakery-cafe sales as revenues. However, royalty revenues are calculated based on a percentage of franchise-operated net bakery-cafe sales, as reported by franchisees. The Company uses franchise-operated and net system-wide sales information internally in connection with store development decisions, planning, and budgeting analyses. The Company believes franchise-operated and net system-wide sales information is useful in assessing consumer acceptance of its brand; facilitates an understanding of its financial performance and the overall direction and trends of sales and operating income; helps the Company appreciate the effectiveness of its advertising and marketing initiatives which its franchisees also contribute based on a percentage of their net sales; and provides information that is relevant for comparison within the industry.

About Panera Bread Company

As of July 1, 2014, there were 1,818 bakery-cafes in 45 states and in Ontario, Canada operating under the Panera Bread®, Saint Louis Bread Co.® or Paradise Bakery & Café® names. We feature high quality, reasonably priced food in a warm, inviting and comfortable environment. With our identity rooted in handcrafted, fresh-baked, artisan bread, we are committed to providing great tasting, quality food that people can trust. Nearly all of our bakery-cafes have a menu highlighted by chicken raised without antibiotics, whole grain bread, and select organic and all-natural ingredients, with zero grams of artificial trans-fat per serving, which provide flavorful, wholesome offerings. Our 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 United States and in Ontario, Canada, our customers enjoy our warm and welcoming environment featuring comfortable gathering areas, relaxing decor and free Internet access. Our bakery-cafes routinely donate bread and baked goods to community organizations in need. Additional information is available on our website, http://www.panerabread.com.

Matters discussed in this news release and in our public disclosures, whether written or oral, relating to future events or our future performance, including any discussion, express or implied, on our anticipated growth, operating results, plans, objectives, future earnings per share, and the impact of our investments in sales-building initiatives and operational capabilities on future sales and earnings, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are often identified by the words "believe," "positioned," "estimate," "project," "target," "plan," "goal," "assumption," "continue," "intend," "expect," "future," "anticipate," and other similar expressions, whether in the negative or the affirmative, that are not statements of historical fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict, and you should not place undue reliance on our forward-looking statements. Our actual results and timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those discussed from time to time in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended December 31, 2013 and our quarterly reports on Form 10-Q. All forward-looking statements and the internal projections and beliefs upon which we base our expectations included in this release are made only as of the date of this release and may change. While we may elect to update forward-looking statements at some point in the future, we expressly disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.


                                                                 Schedule I

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

                                                    For the 13 Weeks Ended
                                                     July 1,      June 25,
                                                       2014         2013
                                                   -----------  -----------
Revenues:
  Bakery-cafe sales, net                           $   555,645  $   521,038
  Franchise royalties and fees                          30,057       27,453
  Fresh dough and other product sales to
   franchisees                                          45,353       40,520
                                                   -----------  -----------
    Total revenues                                     631,055      589,011
Costs and expenses:
  Bakery-cafe expenses:
    Cost of food and paper products                $   168,187  $   156,171
    Labor                                              168,210      149,869
    Occupancy                                           39,237       35,701
    Other operating expenses                            78,714       72,145
                                                   -----------  -----------
      Total bakery-cafe expenses                       454,348      413,886
  Fresh dough and other product cost of sales to
   franchisees                                          39,108       34,599
  Depreciation and amortization                         30,052       25,267
  General and administrative expenses                   32,229       29,743
  Pre-opening expenses                                   1,376        2,081
                                                   -----------  -----------
    Total costs and expenses                           557,113      505,576
                                                   -----------  -----------
Operating profit                                        73,942       83,435
Interest expense                                           301          178
Other (income) expense, net                             (4,003)        (796)
                                                   -----------  -----------
Income before income taxes                              77,644       84,053
Income taxes                                            28,452       33,011
                                                   -----------  -----------
    Net income                                     $    49,192  $    51,042
                                                   ===========  ===========

Earnings per common share:
  Basic                                            $      1.83  $      1.75
                                                   ===========  ===========
  Diluted                                          $      1.82  $      1.74
                                                   ===========  ===========
Weighted average shares of common and common
 equivalent shares outstanding:
  Basic                                                 26,951       29,092
                                                   ===========  ===========
  Diluted                                               27,086       29,287
                                                   ===========  ===========

Other comprehensive income (loss), net of tax:
  Foreign currency translation adjustment          $       450  $      (362)
                                                   -----------  -----------
    Other comprehensive income (loss)                      450         (362)
                                                   -----------  -----------
Comprehensive income                               $    49,642  $    50,680
                                                   ===========  ===========



                                                     Schedule I (continued)

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

                                                    For the 26 Weeks Ended
                                                     July 1,      June 25,
                                                       2014         2013
                                                   -----------  -----------
Revenues:
  Bakery-cafe sales, net                           $ 1,091,194  $ 1,018,557
  Franchise royalties and fees                          59,365       54,030
  Fresh dough and other product sales to
   franchisees                                          86,249       78,203
                                                   -----------  -----------
    Total revenues                                   1,236,808    1,150,790
Costs and expenses:
  Bakery-cafe expenses:
    Cost of food and paper products                $   327,081  $   302,588
    Labor                                              330,673      298,467
    Occupancy                                           78,488       71,854
    Other operating expenses                           154,531      140,090
                                                   -----------  -----------
      Total bakery-cafe expenses                       890,773      812,999
  Fresh dough and other product cost of sales to
   franchisees                                          74,742       67,197
  Depreciation and amortization                         59,494       49,632
  General and administrative expenses                   67,652       58,050
  Pre-opening expenses                                   3,200        3,172
                                                   -----------  -----------
    Total costs and expenses                         1,095,861      991,050
                                                   -----------  -----------
Operating profit                                       140,947      159,740
Interest expense                                           924          480
Other (income) expense, net                             (5,215)      (3,216)
                                                   -----------  -----------
Income before income taxes                             145,238      162,476
Income taxes                                            53,651       63,317
                                                   -----------  -----------
    Net income                                     $    91,587  $    99,159
                                                   ===========  ===========

Earnings per common share:
  Basic                                            $      3.38  $      3.41
                                                   ===========  ===========
  Diluted                                          $      3.36  $      3.38
                                                   ===========  ===========
Weighted average shares of common and common
 equivalent shares outstanding:
  Basic                                                 27,111       29,121
                                                   ===========  ===========
  Diluted                                               27,247       29,308
                                                   ===========  ===========

Other comprehensive income (loss), net of tax:
  Foreign currency translation adjustment          $        56  $      (728)
                                                   -----------  -----------
    Other comprehensive income (loss)                       56         (728)
                                                   -----------  -----------
Comprehensive income                               $    91,643  $    98,431
                                                   ===========  ===========



                                                      Schedule I (continued)

                            PANERA BREAD COMPANY
               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                               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 comprehensive income for the period indicated. Percentages may not add due to rounding:


                                                  For the 13 Weeks Ended
                                                July 1, 2014  June 25, 2013
                                               -------------  -------------
Revenues:
  Bakery-cafe sales, net                                88.1%          88.5%
  Franchise royalties and fees                           4.8            4.7
  Fresh dough and other product sales to
   franchisees                                           7.2            6.9
                                               -------------  -------------
      Total revenues                                   100.0%         100.0%
Costs and expenses:
  Bakery-cafe expenses (1):
    Cost of food and paper products                     30.3%          30.0%
    Labor                                               30.3           28.8
    Occupancy                                            7.1            6.9
    Other operating expenses                            14.2           13.8
                                               -------------  -------------
      Total bakery-cafe expenses                        81.8           79.4
  Fresh dough and other product cost of sales
   to franchisees (2)                                   86.2           85.4
  Depreciation and amortization                          4.8            4.3
  General and administrative expenses                    5.1            5.0
  Pre-opening expenses                                   0.2            0.4
                                               -------------  -------------
    Total costs and expenses                            88.3           85.8
                                               -------------  -------------
Operating profit                                        11.7           14.2
Interest expense                                          --             --
Other (income) expense, net                             (0.6)          (0.1)
                                               -------------  -------------
Income before income taxes                              12.3           14.3
Income taxes                                             4.5            5.6
                                               -------------  -------------
    Net income                                           7.8%           8.7%

Other comprehensive income (loss)                        0.1           (0.1)
                                               -------------  -------------
  Comprehensive income                                   7.9%           8.6%
                                               =============  =============

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

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



                                                      Schedule I (continued)

                            PANERA BREAD COMPANY
               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                               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 comprehensive income for the period indicated. Percentages may not add due to rounding:


                                                  For the 26 Weeks Ended
                                                July 1, 2014  June 25, 2013
                                               -------------  -------------
 Revenues:
  Bakery-cafe sales, net                                88.2%          88.5%
  Franchise royalties and fees                           4.8            4.7
  Fresh dough and other product sales to
   franchisees                                           7.0            6.8
                                               -------------  -------------
      Total revenues                                   100.0%         100.0%
Costs and expenses:
  Bakery-cafe expenses (1):
    Cost of food and paper products                     30.0%          29.7%
    Labor                                               30.3           29.3
    Occupancy                                            7.2            7.1
    Other operating expenses                            14.2           13.8
                                               -------------  -------------
      Total bakery-cafe expenses                        81.6           79.8
  Fresh dough and other product cost of sales
   to franchisees (2)                                   86.7           85.9
  Depreciation and amortization                          4.8            4.3
  General and administrative expenses                    5.5            5.0
  Pre-opening expenses                                   0.3            0.3
                                               -------------  -------------
    Total costs and expenses                            88.6           86.1
                                               -------------  -------------
Operating profit                                        11.4           13.9
Interest expense                                         0.1             --
Other (income) expense, net                             (0.4)          (0.3)
                                               -------------  -------------
Income before income taxes                              11.7           14.1
Income taxes                                             4.3            5.5
                                               -------------  -------------
    Net income                                           7.4%           8.6%

Other comprehensive income (loss)                         --           (0.1)
                                               -------------  -------------
    Comprehensive income                                 7.4%           8.5%
                                               =============  =============

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

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



                                                                 Schedule II

                            PANERA BREAD COMPANY
               Supplemental Sales and Bakery-Cafe Information

                                System-Wide Average Weekly Sales ("AWS")
                            2014[a]     2013      2012      2011      2010
                           --------- --------- --------- --------- ---------
AWS                          $47,360   $47,403   $46,676   $44,313   $42,852

[a]  Represents year-to-date system-wide AWS at the end of fiscal Q2 2014.



                                                            Year-Over-Year
                                                          Change in Company-
                 2014 Company-Owned AWS By Year Opened         Owned AWS
             -------------------------------------------- ------------------
                                                                  2012
                       2013    2012      2013              2013  Opens
               2014   Opens  Opens & Acquisitions          Opens   &    AWS
              Opens    [b]    Prior       [c]      Total    [d]  Prior Total
             ------- ------- ------- ------------ ------- ------ ----- -----
Bakery-Cafes    26      63     801         1        891
    Q1 14    $55,230 $40,919 $47,539    $55,601   $47,142 -33.9%  1.0%  0.0%
    Q2 14    $45,499 $41,953 $48,885    $46,482   $48,313 -13.0%  0.3% -0.8%
  2014 YTD   $48,300 $41,436 $48,212    $51,041   $47,731 -18.7%  0.7% -0.4%
[b]  2013 Company-owned AWS excludes acquisition data.

[c]  Represents one Panera bakery-cafe in 2013.

[d]  Change in Company-owned AWS in 2014 from 2013 compares 63 bakery-cafes
     in 2014 against 28 bakery-cafes at the end of fiscal Q2 2013.



              2014 Franchise-Operated AWS By Year  Year-Over-Year Change in
                             Opened                 Franchise-Operated AWS
              ----------------------------------- --------------------------
                                  2012              2013     2012
                2014     2013    Opens &            Opens   Opens &    AWS
                Opens    Opens    Prior    Total     [e]     Prior    Total
              -------- -------- -------- -------- -------- -------- --------
 Bakery-Cafes    20       70       837      927
    Q1 14      $58,891  $43,874  $46,881  $46,717  -14.9%    0.2%     -0.2%
    Q2 14      $52,347  $43,581  $47,500  $47,290  -11.8%    -0.4%    -1.0%
   2014 YTD    $53,882  $43,727  $47,191  $47,005  -12.3%    -0.1%    -0.6%
[e]  Change in Franchise-operated AWS in 2014 from 2013 compares 70 bakery-
     cafes in 2014 against 31 bakery-cafes at the end of fiscal Q2 2013.



                              Traditional and Non-Traditional AWS [f]
                       -----------------------------------------------------
                                             Franchise-
                         Company-Owned        Operated        System-Wide
                       ----------------- ----------------- -----------------
                         2014     2013     2014     2013     2014     2013
                         Opens    Opens    Opens    Opens    Opens    Opens
                       -------- -------- -------- -------- -------- --------
  Traditional Bakery-
         Cafes            22       24       19       27       41       51
    Non-Traditional
      Bakery-Cafes         4        4        1        4        5        8
    Traditional AWS     $50,038  $51,630  $53,568  $52,149  $51,653  $51,928
  Non-Traditional AWS   $36,747  $48,286  $57,102  $44,320  $42,199  $46,944
                       -------- -------- -------- -------- -------- --------
         Total          $48,300  $50,983  $53,882  $49,855  $50,738  $50,338
[f]  Represents year-to-date bakery-cafe openings and AWS for fiscal 2014
     and fiscal 2013. Traditional bakery-cafes generally represent bakery-
     cafes opened in suburban geographies approximating our standard 4,200
     square foot design. Non-traditional bakery-cafes reflect all other
     bakery-cafes including urban, small footprint formats, and delivery
     units.



                                                     Schedule II (continued)


                     Bakery-Cafe Openings (excluding acquisitions) [g]
               -------------------------------------------------------------
               Company Franchise Total               Company Franchise Total
               ------- --------- -----               ------- --------- -----
     Q1 14        16       11      27      Q1 13        10       12      22
     Q2 14        10       9       19      Q2 13        18       19      37
     Q3 14                                 Q3 13        17       15      32
     Q4 14                                 Q4 13        18       24      42
               ------- --------- -----               ------- --------- -----
   2014 YTD       26       20      46     2013 YTD      63       70     133
[g]  Bakery-cafe openings in fiscal Q1 2014 exclude the opening of one
     Company-owned catering hub. Bakery-cafe openings in fiscal Q2 2014
     exclude the opening of one Company-owned and one franchise-operated
     catering hub. As of fiscal Q2 2014, there were eight Company-owned and
     one franchise-operated catering hubs operating.



                                                                Schedule III

                            PANERA BREAD COMPANY
                Comparable Net Bakery-Cafe Sales Information

Set forth below is comparable net bakery-cafe sales growth information on a calendar basis comparing fiscal Q2 2014 to comparable periods in the prior year:


                  For the 4   For the 5   For the 4   For the 13  For the 26
                 Weeks Ended Weeks Ended Weeks Ended Weeks Ended Weeks Ended
                  April 29,    June 3,     July 1,     July 1,     July 1,
                     2014        2014        2014        2014        2014
                 ----------- ----------- ----------- ----------- -----------
Company-owned        0.4%        0.4%       -0.6%        0.1%        0.1%
Franchise-
 operated           -0.7%        0.0%        0.2%       -0.2%        0.0%
System-wide         -0.2%        0.2%       -0.2%        0.0%        0.0%


Set forth below is Company-owned comparable net bakery-cafe sales growth information for fiscal Q2 2014 adjusted for the estimated impact of the Easter shift between calendar quarters:

                                                      For the 13 Weeks Ended
                                                           July 1, 2014
                                                      ----------------------
Company-owned As Reported                                      0.1%
Easter Shift                                                   0.4%
                                                      ----------------------
Adjusted Company-owned                                         0.5%

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Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
"Ulunsoft is a start-up that focuses on how enterprises build cloud-based IT infrastructure for business," explained Haibo Zhu, President of Ulunsoft Corp, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in San...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
“The year of the cloud – we have no idea when it's really happening but we think it's happening now. For those technology providers like Zentera that are helping enterprises move to the cloud - it's been fun to watch," noted Mike Loftus, VP Product Management and Marketing at Zentera Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Desktop as a Service is emerging as a very big trend. One of the big influencers of this – for Esri – is that we have a large user base that uses virtualization and they are looking at Desktop as a Service right now," explained John Meza, Product Engineer at Esri, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Application monitoring and intelligence can smooth the path in a DevOps environment. In a DevOps environment you see constant change. If you are trying to monitor things in a constantly changing environment, you're going to spend a lot of your job fixing your monitoring," explained Todd Rader, Solutions Architect at AppDynamics, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
AppDynamics, the application intelligence leader for software-defined businesses, announced the general availability of the AppDynamics Fall '14 Release. Serving the combined needs of IT and business teams across the enterprise, the latest release provides a comprehensive view across all aspects of digital performance in ultra large scale deployments. AppDynamics delivers Application Intelligence by building out advanced capabilities across the key areas of analytics, unified monitoring and D...
In addition, Tesora adds the popular enterprise distribution from Mirantis to the Tesora OpenStack Database Certification Program ensuring compatibility with both NoSQL and SQL database management systems on Trove and eliminating the headache of enterprises having to test integration on their own. "We're providing Mirantis customers with the most production-ready OpenStack Trove implementation, saving the work and time necessary to ensure compatibility," said Ken Rugg, CEO of Tesora. "Working...
Docker containerization is gaining rapid popularity with Software-as-a-Service (SaaS) developers because of clear benefits such as simplified and continuous app delivery. Enterprise developers also want to leverage Docker for easy provisioning and efficient testing, but IT has unique needs that Docker does not solve out-of-the-box, such as security and access control, supporting heterogeneous infrastructure, apps and app stacks, backup and recovery, visibility and monitoring, and integration. Ho...