Panera Bread Co. (NASDAQ: PNRA) operates the signature restaurant chain Panera Bread, selling hand-crafted breads, sandwiches, salads, and drinks. Panera Bread bakery-cafes are often associated with the concept of “fast casual”, a mixture between fast food and more upsale casual dining. Customers still pay for their food at the counter, like a traditional fast food restaurant, but Panera is more upscale, arranging tables and chairs to be conducive to group meetings and spending over $1MM per store on furnishings.^[1]

Most Panera Bread restaurants are located in suburban strip malls and regional malls. At the end of 2007, there were 1167 Panera Bread and Saint Louis bakery-cafes, spanning 38 states, as well as some locations in Canada. In 2007, Panera Bread's revenues reached $1.1B, a 29% increase from 2006 revenues. Despite this growth, the company’s operating income actually decreased by 2.2%.^[2] This inconsistency can be attributed to rising costs of production, such as increases in wheat and fresh dough prices , as well as rising labor and rent costs. Traditionally, companies like Panera have suffered in recessions, which decrease the frequency with which consumers eat out at restaurants.^[3] Panera CEO, Ron Shaich, stated that Panera prices will not fall with the recession, as Panera will continue to focus on "the 90 percent [of customers] that are still employed."^[4] As such, the company will continue to focus on improving quality with initiative such as baking bread later in the day. The company’s brand name will continue to play an important role in its business, as consumers tend to limit their choice of restaurants to the brands they feel most loyal to during times of recession.

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