How Is Panera Bread Expanding Its Business?



Current operations

By the end of 4Q16, Panera Bread (PNRA) operated 2,036 restaurants, of which 902 were company-owned restaurants, and 1,134 were franchised restaurants.

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PNRA’s unit growth

In the last 12 months, Panera Bread has increased its restaurant count by 64. During the same period, the franchised restaurant count has increased by 63, and the company-owned restaurant count has risen by one. The company refranchised 27 restaurants in 2016, which amounts to 102 restaurants being refranchised since the beginning of 2015. Also, during 2016, the company closed 20 company-owned restaurants.

In 4Q16, the company converted 33 restaurants to Panera 2.0, taking the Panera 2.0 restaurant count to 626. By the end of 4Q16, 118 franchised restaurants had been converted to Panera 2.0, and Panera had extended its delivery service to approximately 15% of restaurants.


In 2017, Panera expects to add 70 to 80 new restaurants. Approximately 40 to 50 of those are expected to be company-operated. The company also expects to expand its delivery service to 35%–40% of company-operated restaurants, and 75% of franchise groups. It expects 80% of its franchised groups to have implemented Panera 2.0 by the end of 2017.

ETF exposure

You can gain exposure to Panera by investing in the iShares Core S&P Mid-Cap ETF (IJH), which invests 0.3% of its holdings in Panera. IJH has also invested 0.54%, 0.29%, and 0.18% of its holdings in Domino’s Pizza (DPZ), Dunkin’ Brands (DNKN), and Texas Roadhouse (TXRH), respectively. Next, we’ll look at Panera Bread’s 2017 revenue expectations.


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