Panera Bread Co. reported a 4-percent decline in net income for the second quarter and downgraded its outlook for the year.
Ron Shaich, Panera’s chair and chief executive, said the chain is making progress toward its goal of increasing transactions.
During the quarter, transactions rose 0.4 percent at company-owned bakery-cafes. “This gives us confidence in the potency of our plan,” Shaich said in a statement. “While our average check declined modestly in the second quarter, 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.”
Citing higher input costs and lower-than-expected increases in average check, the St. Louis, Mo.-based company said company restaurant same-store sales will likely be flat to an increase of 1.5 percent for the year — though company officials say initiatives underway are expected to grow transactions. Previous projections included a range of increases between 2 percent and 3.5 percent.
The company, however, is maintaining its expectations that 115 to 125 new bakery-cafes will open in fiscal 2014. As of the July 1-ended second quarter, the company had 1,818 bakery-cafes in 45 states and Canada operating under the Panera Bread, Saint Louis Bread Co., or Paradise Bakery & Café names.
2Q NET INCOME
Result: $49.2 million, or $1.82 per share% Decrease: 4% (from $51 million, or $1.74 per share a year ago)
2Q REVENUE
Result: $631 million% Increase: 7% (from $589 million a year ago)
2Q SAME-STORE SALES
—— Flat at domestic units systemwide
% Increase at company-owned units: 0.1%
% Decrease at franchised units: 0.2%
Source: Company report
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