RICHMOND HEIGHTS Mo. Panera Bread Co. trumpeted the success of its new breakfast items as it reported a 40-percent rise in first-quarter net income, and said it plans to roll out more menu items as summer approaches.
For the first quarter ended March 31, Panera posted net income of $17.4 million, or 57 cents per share, compared with $12.4 million or 41 cents a share, in the year-ago period. Revenue rose 5 percent to $320 million, Panera said.
The 1,335-unit chain's Share the Warmth breakfast initiative in January introduced new dark and light coffee blends, breakfast sandwiches, a parfait and other new morning menu items. Jeffrey Kip, Panera's chief financial officer, said stronger breakfast sales during the quarter helped compensate for a drop in catering business. Same-store sales rose 0.7 percent in the first quarter.
“Better-than-expected transaction growth was generated because breakfast transactions overdelivered,” he said in a conference call with investors Wednesday.
During the call, Panera's chairman and chief executive, Ronald Shaich, described several new menu items that are expected to help drive traffic this summer, including a chopped Cobb salad made with pepper-mustard chicken, apple and bacon, which is set to debut in June. Another new salad, a barbecued chicken chopped salad, is planned for August, he said.
"Our intent this summer is to bring to lunch and dinner the same impact that the Share the Warmth celebration brought to breakfast," he said.
Panera reaffirmed its full-year outlook of per-share earnings between $2.55 to $2.71. In 2008, Panera earned $2.22 a share.
Contact Dina Berta at [email protected].