ST. LOUIS Panera Bread Co. credited cost cuts and an increase in menu prices for a 24-percent jump in net income for the second quarter ended June 24. Revenues rose 27 percent, reflecting same-store sales gains of 6.5 percent for company units and 4.8 percent for company stores.
Profits for the period totaled $15 million, or 52 cents per diluted share, compared with $13 million or 39 cents a diluted share for the year-ago quarter. Revenues were $320.9 million, up from the year-ago quarter’s $253 million.
The operator or franchisor of 1,270 bakery-cafes said it absorbed a $6.3 million spike in wheat costs during the quarter. Panera said it paid $15 per bushel for the grain, compared with an average of $5.80 for the year-ago quarter. The company revealed last month that it had locked into a cost of $10 per bushel for 95 percent of the wheat it expects to purchase during the first half of fiscal 2009.
Chief executive Ron Shaich said the franchisor realized cost savings from the discontinuation of a Crispani flatbread pizza, the introduction of grilled breakfast sandwiches as an alternative to a breakfast quiche, and new media campaigns.
Shaich said same-store sales had risen 3.6 percent at company units and 4.0 percent at franchised stores in the first 27 days of the third quarter, which he characterized as an indication that the sales period is off to a promising start. He cautioned, though, that wheat costs are likely to continue to rise.
During the quarter, the company opened 6 company-owned and 13 franchise-operated bakery-cafes and closed one company-owned store. Panera is the parent of both its namesake brand and a secondary concept called St. Louis Bread Co.