A. Objective: Long-Term EPS growth of 15-20% Annually
B. Strategy: Differentiation
1. Quality of Food: Revenue & Profit
2. Marketing: Customer Segmentation
3. Operations: ROA and efficiencies
4. Capital Utilization: Strong cash flow, zero debt
Panera Financial Comparison
A. Strong cash flow - $223MM as of FY2011
B. Debt Management – zero debt
C. Capital used to enhance differentiation:
2. Customer experience
3. Customer retention programs
4. Expansion of stores
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Panera’s current products and services are founded in providing the best quality bread, ingredients and service to taheir customers. Panera stays focused on the foundation of bread and build upon that with ingredients aimed at meeting the customers distinguishing and evolving tastes. This focus allows Panera to command a premium price, and profit margin, with repeat customers.
Panera’s financial management is true to supporting their core competencies by reinvesting in their franchisees, marketing to their current customers to enhance their experience and innovating new products and offerings. Panera has accomplished this to-date while maintaining a strong sales growth, favorable cash flow position and no debt.
Panera continues to understand their customer needs to then develop new offerings, enhance on ingredient develop and creating a marketing program to deliver valuable promotions and marketing communications to their loyal customers.
While the strengths of Panera have favored them to-date financially and with the current customer base, they have a limited target segment consisting of white collar customers. This is in part due to their higher prices but a disruption in this one segment in a region could have a significant effect on on-going performance. ...