- write a detailed case analysis report on PANERA BREAD COMPANY
- Cover Page (APA Format)
- Executive summary: one page, double space (APA Format) ( I WILL DO THAT—DO NOT DO IT)
- Case analysis: 5 pages of analysis (APA Format) with tables, figures, and notes attached as appendices.
Your report should address the suggested questions for the case, but you are strongly encouraged to address additional points believed to be important for the analysis
UVA-F-1575 Rev. Sept. 24, 2018 Panera Bread Company As the end of 2007 drew near, Panera Bread Company was facing a brand-new challenge. Until recently, strong margins had allowed Panera to finance its rapid growth largely through retained earnings and very minor equity infusions resulting from compensation programs. The company used no permanent debt financing and, in fact, had allowed a $10 million credit facility to expire. But now Panera was facing a decline in margins that would limit its ability to rely on internal funds. With growth expected to continue and a $75 million stock repurchase under consideration, the company realized it would almost surely need capital from external markets—in both the short run and the long run. History and Business Model Panera had its origins in another successful bread venture, Au Bon Pain Co., which was founded in 1981. The success of Au Bon Pain in the 1980s gave rise to the 1993 purchase of Saint Louis Bread Company, a small bakery-café company located in St. Louis, Missouri. By the end of 1999, the Saint Louis Bread Company concept was being expanded under the Panera Bread name, Au Bon Pain had sold off all its units except Panera Bread, and Au Bon Pain itself had adopted the Panera name. Panera’s goal was to create a dining experience centered on fresh-baked bread in an environment where 1people “slowed down to enjoy real food.” Its emphasis on wholesome foods and a welcoming environment placed the company in stark contrast to the fast-food experience that dominated the multiunit restaurant business. An essential element was a commitment to high-quality bread. Panera breads were baked fresh every day, at every location. The bread was featured in virtually all the store offerings, including such selections as made-to-order sandwiches and soup served in a bread bowl. Ensuring high-quality bread required the best ingredients, specialized equipment, and careful training. For example,…