Panera Bread Company is a NASDAQ (Symbol: PNRA) traded company, which currently has over 1,500 company-owned and franchise-operated bakery-cafes in 40 U.S. stated and Canada. Approximately 47 % of the bakery-cafes are company owned, and most franchisees have 30 to 40 units . A review of the 2010 annual report shows that the company is doing very well financially as it ended the year with $229 in cash on the Balance Sheet and no debt, while generating approximately $238 million in cash flow from operations during the year . This allowed a repurchase of $150 million in PNRA stock and the acquiring 37 stores from a franchisee. 2. What is the company’s management philosophy?
Panera’s mission statement is: “ a loaf of bread in every arm”, and has a stated goal of making great bread broadly available to consumers across America, Panera Bread freshly bakes more bread each day than any bakery-café concept in the country . Each store has a welcoming array of experiences for the customer from the delicious aroma of fresh bread, cinnamon, and roasted coffee to free WI-FI. A typical store is 4,600 square feet with plenty of room to spread out in booths or tables. They offer a healthy alternative to fast food.
Panera is a company that gives back as well through its Operation Dough-Nation Programs. These programs include: Community Breadbox, Day-End Dough-Nation, SCRIP Fundraising and Community Events. In 2010, Panera donated the approximate retail value of $100 million worth of unsold bread and baked goods with its Day-End Dough-Nation program . Panera has also opened the non-profit Saint Louis Bread Co., it offers a pay what you feel is fair menu and for those who cannot pay are encouraged to volunteer. The Saint Louis Bread Co. offers the same menu as Panera except the food is a “day old” rather than fresh . 3. Identify any management issues?
Management was able to view the 2009 recession as an opportunity for growth....