Panera Case Essay

4503 Words Apr 21st, 2013 19 Pages
Panera Bread Company is a national bakery-cafe with 1,504 locations across the US and Canada. This case study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, we hope you, the reader, will gain usable insight on Panera Bread and its value. We will give a recommendation to our readers according to our given information. Panera Bread is a chain of bakery-cafe quick service restaurants in the United States and Canada that sells breads, sandwiches, soups, salads, and other bakery items. Its headquarters are in Sunset Hills, Missouri, a suburb of St. Louis. Panera bread was once originally known as the St. Louis Bread Company. In …show more content…
Panera Bread is a publicly traded company and is seen as PNRA in the NASDAQ index.

Panera’s strategy during the recession has been “to stay consistent and not to react to the recession”; keeping costs constant and offering new salads and sandwiches. As a result, Panera’s “fast casual” niche (between casual dining and fast food) contributes to its relative success; this positioning allowed it to avoid discounting wars and maintain its margins by attracting customers with a higher quality product perceived to be a good value for the money. The company generates revenue through sales from company-operated stores, fees and royalties from franchisees, and sales from fresh dough facilities. At the end of 2009, the company itself fully owned 585 restaurants, which generated $1,152 million in revenues (85.2% of total revenues). Furthermore, franchisee groups owned 795 additional, franchised restaurants. The franchises themselves grossed $1376.4M in sales. Although its franchises only generate a small percentage of the Panera Bread’s total revenue, they are important to the company’s brand name recognition. In addition to restaurants, the company operates 23 fresh dough facilities that supply dough to both company-operated restaurants and franchises. The 23 facilities generated $121 million in sales to franchises in 2009 (9.0% of total revenues). An important aspect of Panera Bread’s business is its product niche—artisan fast food, also termed “fast casual”. This niche

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