No matter how you slice it, Panera Bread (PNRA) is on a roll.
The bakery-cafe chain has watched sales and profit rise by double digits for four straight quarters as it continues to freshen up the menu with tasty offerings that whet the appetite of consumers.
A new customer loyalty program and a growing catering business have also helped drive gains.
Panera delivered meaty fourth-quarter results Feb. 10. Profits popped 27% from a year earlier to $1.21 a share, 4 cents ahead of views. Sales jumped 17% to $428.2 million. Systemwide same-store sales at bakery cafes rose 5.8%.
Such sales at company-owned outlets grew 5.2%. The average check was up 2.3%. Transactions rose 2.9% from a year earlier. For the year, transactions were up 2.1%.
Panera’s shares have been up sharply. Its stock price is hovering near an all-time high.
Spokeswoman Michele Harrison attributes Panera’s latest growth surge to ongoing investments in the concept, marketing, operations and the customer experience. These efforts help differentiate its concept from rivals, and drive unit growth and product development, she said via e-mail.
Loyalty Program
One investment that’s struck a chord with consumers is the MyPanera loyalty program rolled out nationally in November. Harrison says it contributed “significantly” to the transaction “lift” the company saw during the fourth quarter. The program now boasts nearly 4.5 million registered members.
It expects to again see a transaction lift from the program in 2011.
With MyPanera, the company aims to build deeper customer relationships by serving up rewards that “surprise and delight,” says Harrison.
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