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How Panera 2.0 Improved Its 4Q15 Same-Store Sales Growth

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Dec. 4 2020, Updated 10:52 a.m. ET

4Q15 same-store sales growth

Same-store sales growth is a measure of increased revenue from existing restaurants over a certain period. In this article, we’ll express this timeframe as year-over-year. In 4Q15, Panera Bread (PNRA) recorded same-store sales growth of 3.6%, compared to 3.3% in 4Q14.

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Same-store sales growth drivers

The increase in same-store sales growth was driven by a 2.5% increase in check size and a 1.1% increase per transaction. Further classifying the check size into price and product mix, we see that the increase in prices contributed 2%, while a better product mix contributed 0.5% toward its same-store sales growth.

During the same period, Panera Bread’s (PNRA) peers Chipotle Mexican Grill (CMG) and Qdoba Mexican Eats, which operates under the umbrella of Jack in the Box (JACK), recorded negative same-store sales growth. Chili’s Grill & Bar, operating under the umbrella of Brinker International (EAT), recorded a systemwide same-store sales growth of 2.3%. You can divest your investment by investing in the PowerShares BuyBack Achievers Portfolio ETF (PKW), which has invested 0.26% in PNRA.

Factors affecting same-store sales growth

Panera Bread (PNRA) noted that the increase in same-store sales growth was primarily due to the implementation of Panera 2.0. Panera 2.0 utilizes digital technology to enhance the customer experience and increase the company’s operational efficiency. By the end of 2015, the company had converted 410 of its company-operated restaurants to Panera 2.0.

The company’s management claimed that the sales in Panera 2.0 restaurants would gain momentum in the third or fourth quarter after the implementation. This would occur as the needs of the guests and employees would be adjusted and they are able to embrace the new systems. Also, the increase in catering sales and Panera at Home have also positively affected the same-store sales growth of PNRA.

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