Panera Bread SWOT Analysis Prepared by: Brian McDonald, Ora Carson, Bree McCraw, and Ginger Terry MOD 440 Facilitator Dr. Berry Ziggler Week 4 July 31, 2012

504 company-owned and franchise-operated bakery cafes (Panera Bread. the Au Bon Pain restaurants were sold. Louis Bread Company chain. the Panera Bread concept evolved. and the company put its primary focus on growing the Panera Bread restaurants.2 PANERA BREAD SWOT ANALYSIS HISTORY The Panera Bread restaurant chain was founded by Ron Shaich and Louis Kane as Au Bon Pain Co. Louis Bread Company restaurants continue to operate with the same Panera Bread concept and menu in the state of Missouri. The St. After acquiring the St. Panera Bread has one of the highest stock market prices of all their competitors in the industry. but they are in a different group as the others. Panera Bread is considered to be in the restaurant industry. In 1999. . 1999-2011). There are currently 1.

selling high- . Ron has also set a new bar by bringing in fresh produce daily opposed to the 12 to 18 day old produce that is typical for most restaurants. The value of commercial real estate has collapsed along with home prices.3 PANERA BREAD SWOT ANALYSIS INTRODUCTION In every business there will come a time when the business needs to understand the things that will help a business and what will hurt that business. One of the main agencies that they deal with is the U. Panera Bread will be dealing with the government and many other agencies. He plans to add at least 80 locations to his ever growing company. While other businesses might be suffering or worse. Food and Drug Administration (FDA). The threats that the business determines will help in making that business aware of the potential problems that can plague the business and cause it not to succeed. STRATEGY Panera Bread is the Apple of fast food. In being associated with this group of businesses. all the while he’s upping Panera’s investment in its distribution system. A business can determine their opportunities and the threats that are associated with that specific business. The company's expansion seems sharp actually. Panera Bread acknowledges both their opportunities and threats. which in turn helps the business to become a success. Panera continues with its pre-recession strategy of charging premium prices for its sandwiches and salads as if they were iPhones. Plus. So far. Panera can lock in these low terms for the next 20 years. In determining these opportunities that a business has will help in directing the business’s future plans. Panera Bread’s owner Ron Shaich has no plans on slowing down. Shaich says he's been able to bargain down lease rates by 20% to 25%. Panera Bread is a company that is incorporated into the food industry.S.

Its average check rose to $8. Panera Bread prices for their product is higher than the average fast food product which determines if a customer will visit their store or one of their competitor’s. Its same-store sales increased 3. vs. putting Panera just behind McDonald's and double what a typical Arby's and KFC unit grosses. SWOT Strengths Well-known brand name High quality product Strong financial condition Great strategy Weaknesses Consumer preferences Decline in customer service Narrow product line Higher prices Opportunities Expansion Culture Introduce new items Expand product line Threats Economy Competitors Government regulations Price changes in product . Panera Bread will need to determine new ways and promotions that will entice the customers to visit their cafes. high-priced fast food has worked just fine for Panera.6% in 2008 (see Exhibit 1). declines at many other chains including Starbucks (see Exhibit 2). If Panera Bread cannot get customers into the cafes then they do not sell their product and do not make a profit. Many consumers because of the downturn in the economy have cut back on their dining out.4 PANERA BREAD SWOT ANALYSIS quality. and each restaurant is now pulling in $2 million on average. This has cause a loss of customers at Panera Bread Cafes.50. Main Issue The main issue with Panera Bread is the economy.

. The future of this company seems very bright and will keep bringing in profit for the investors and security for its creditors. Their stock has risen very high and seems to be going even higher. Conclusion Panera Bread has shown that they know how to manage their business to delight of their investors and creditors. A business that uses its strengths and manages its weaknesses will determine if that business will be a success." They are trying to make the experience of dining at Panera so attractive that customers would be willing to pass by the outlets of other fast-casual restaurants competitors to dine at a near-by Panera Bread. Every business needs to know what its strengths and weaknesses are in the industry. A business that knows its opportunities and threats will become a more stable company and make plans for its future. The business needs to understand its weaknesses and improve on them. Panera Bread strategy of introducing new products on a regular basis will help in convincing the consumers that Panera Bread is the choice that they want to make for that lunch or dinner trip out. The promotions that the company presents will help in getting the customers into the cafes and buying the product.5 PANERA BREAD SWOT ANALYSIS Recommendations Panera Bread needs to understand the customer’s needs and desires in the present economy. A business needs to use its strengths in making decisions. They have kept their ratios to the correct levels and maintained decent inventories for the company. Panera is trying to be "better than the guys across the street. Panera Bread is trying to provide premium specialty bakery and café experience to urban workers and suburban dwellers.

912 $536.952 $ .073 ($801) $86.050 $86.353.005.903 $83.952 $135.866 $238.298.063 12/28/2010 $1.185.162 $140.542.436 $67.698 Total Revenue Cost of Revenue Gross Profit Operating Expenses Sales.050 $84.565 $2. Non-Recurring Items Other Operating Items $329.069 ($4.436 Operating Income Add'l income/expense items Earnings Before Interest and Tax Interest Expense Earnings Before Tax Income Tax Minority Interest Net Income-Cont.585 $79.225 $112.6 PANERA BREAD SWOT ANALYSIS Exhibit 1 Annual Income Statement (values in 000's) Get Quarterly Data Period Ending: Trend 12/27/2011 $1.708 $41.673 $185.075 12/30/2008 $1.282 $68.489 $1.436 $67.563 $267 $111.897 ($273) $140.577 12/29/2009 $1.952 $278.969 $636.155 $267.393 $3.451 $67.951 $0 $135.494 $904.162 $68.259 $466 $220.899 $220.837 $675 $180.606 $108.866 $111.853 $1.032 $1.706 ($883) $110.419 $449.624 $700 $139.232) $180.866 $111.050 $86.725 $822 $219.272 ($1. General and Admin.374 $67. Operations Net Income Net Income Applicable to Common Shareholders Taken from nasdaq.031.509) $67.553 $4.320 $6.924 $53.314 $1.

400 4.419.600 6.469.400 33.000 39.700) 1.324.700 1.800 9.248.400 4.400 1.100 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops 146.751.700 Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss 4.703.300 1.437.100 Operating Expenses 10.200 523.100 53.700 440.000 510.300) 1.414.000 599.142. 2009 11.774.300 4.449.300 1.700 32.949. 2010 Sep 26.700 (2.700 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items - .100 1.707.300 1.400 534.400 50.7 PANERA BREAD SWOT ANALYSIS Exhibit 2 Income Statement Get Income Statement for: 1 GO View: Annual Data | Quarterly Data All numbers in thousands Period Ending Total Revenue Cost of Revenue Gross Profit Oct 1.458.100 (2.271.000 488.600 4.700. 2011 Oct 2.844.524.900 5.100 563.700 37.900 168.811.600 4.300 6.100 559.500 332.093.400 (700) 512.

700 945.600 390.245.800 390.245.800 Taken from nasdaq.700 1.600 945.8 PANERA BREAD SWOT ANALYSIS Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares .


Retrieved from Nasdaq Stock Market Panera Bread. Nasdaq. April). (2012). Panera Bread Corporation.panerabread. Managing Growth in Business.10 PANERA BREAD SWOT ANALYSIS References Admin. Retrieved from www. Panera Bread Company . (2010. (2012).