Panera income drops 10% in quarter

by Staff
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ST.LOUIS — For the quarter ended June 26, Panera Bread Co. reported net income of $12,635,000, equal to 40c per share on the common stock, a decrease of 10% compared with a net income of $14,052,000, or 45c per share, during the same quarter of last year.

Total revenue was $252,959,000, a 28% increase compared with $197,135,000 during the same quarter of 2006.

"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 Ron Shaich, chairman and chief executive officer.

During the second quarter, the company opened 39 new bakery-cafes system-wide, acquired 32 bakery-cafes from franchisees, sold one bakery-café to a franchisee and closed five bakery-cafes system-wide. In addition, comparable bakery-café sales increased 2.1%, while system-wide average weekly sales decreased .9%.

For the six months ended June 26, net income was $27,679,000, or 88c per share, a 5% decrease compared with $29,065,000, or 93c per share, during the same period of the previous year. Total revenue for the period was $492,634,000, a 26% increase compared with $391,106,000 during the same period of 2006.

The company set its third quarter diluted earnings per share (E.P.S.) target at 32c to 38c. The company is also setting its diluted E.P.S. target for the rest of the year at 86c to $1.02, assuming system-wide comparable bakery-café sales growth of 2.25% to 4.75%, system-wide average weekly sales of $38,800 to $39,000 and system-wide operating weeks of 30,650 to 30,750.

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