0000724606
us-gaap:CommonClassBMember
2008-12-31
2009-12-29
0000724606
us-gaap:RetainedEarningsMember
2010-12-28
0000724606
us-gaap:ComprehensiveIncomeMember
2010-12-28
0000724606
us-gaap:AdditionalPaidInCapitalMember
2010-12-28
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2010-12-28
0000724606
us-gaap:NoncontrollingInterestMember
2010-12-28
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-12-29
0000724606
us-gaap:RetainedEarningsMember
2009-12-29
0000724606
us-gaap:NoncontrollingInterestMember
2009-12-29
0000724606
us-gaap:ComprehensiveIncomeMember
2009-12-29
0000724606
us-gaap:AdditionalPaidInCapitalMember
2009-12-29
0000724606
us-gaap:AdditionalPaidInCapitalMember
2008-12-30
0000724606
us-gaap:NoncontrollingInterestMember
2008-12-30
0000724606
us-gaap:ComprehensiveIncomeMember
2008-12-30
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-30
0000724606
us-gaap:RetainedEarningsMember
2008-12-30
0000724606
us-gaap:RetainedEarningsMember
2007-12-25
0000724606
us-gaap:AdditionalPaidInCapitalMember
2007-12-25
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-25
0000724606
us-gaap:NoncontrollingInterestMember
2007-12-25
0000724606
us-gaap:ComprehensiveIncomeMember
2007-12-25
0000724606
us-gaap:TreasuryStockMember
2010-12-28
0000724606
us-gaap:TreasuryStockMember
2009-12-29
0000724606
us-gaap:TreasuryStockMember
2008-12-30
0000724606
us-gaap:CommonClassBMember
2008-12-30
0000724606
us-gaap:CommonClassAMember
2008-12-30
0000724606
us-gaap:CommonClassAMember
2007-12-25
0000724606
us-gaap:TreasuryStockMember
2007-12-25
0000724606
us-gaap:CommonClassBMember
2007-12-25
0000724606
us-gaap:RetainedEarningsMember
2009-12-30
2010-12-28
0000724606
us-gaap:RetainedEarningsMember
2008-12-31
2009-12-29
0000724606
us-gaap:NoncontrollingInterestMember
2007-12-26
2008-12-30
0000724606
us-gaap:RetainedEarningsMember
2007-12-26
2008-12-30
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-12-30
2010-12-28
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-31
2009-12-29
0000724606
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-26
2008-12-30
0000724606
us-gaap:NoncontrollingInterestMember
2008-12-31
2009-12-29
0000724606
us-gaap:ComprehensiveIncomeMember
2009-12-30
2010-12-28
0000724606
us-gaap:ComprehensiveIncomeMember
2008-12-31
2009-12-29
0000724606
us-gaap:ComprehensiveIncomeMember
2007-12-26
2008-12-30
0000724606
us-gaap:CommonClassBMember
2010-12-28
0000724606
us-gaap:CommonClassAMember
2010-12-28
0000724606
us-gaap:CommonClassAMember
2009-12-29
0000724606
us-gaap:CommonClassBMember
2009-12-29
0000724606
2008-12-30
0000724606
2007-12-25
0000724606
us-gaap:AdditionalPaidInCapitalMember
2009-12-30
2010-12-28
0000724606
us-gaap:AdditionalPaidInCapitalMember
2007-12-26
2008-12-30
0000724606
us-gaap:CommonClassAMember
2009-12-30
2010-12-28
0000724606
us-gaap:TreasuryStockMember
2009-12-30
2010-12-28
0000724606
us-gaap:CommonClassAMember
2008-12-31
2009-12-29
0000724606
us-gaap:TreasuryStockMember
2008-12-31
2009-12-29
0000724606
us-gaap:CommonClassAMember
2007-12-26
2008-12-30
0000724606
us-gaap:TreasuryStockMember
2007-12-26
2008-12-30
0000724606
2007-12-26
2008-12-30
0000724606
2010-12-28
0000724606
2009-12-29
0000724606
us-gaap:NoncontrollingInterestMember
2009-12-30
2010-12-28
0000724606
us-gaap:AdditionalPaidInCapitalMember
2008-12-31
2009-12-29
0000724606
2008-12-31
2009-12-29
0000724606
us-gaap:CommonClassBMember
2010-06-29
0000724606
us-gaap:CommonClassAMember
2010-06-29
0000724606
us-gaap:CommonClassBMember
2011-02-18
0000724606
us-gaap:CommonClassAMember
2011-02-18
0000724606
2009-12-30
2010-12-28
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:NatureOfOperations-->
<div align="left" style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<!-- xbrl,ns -->
<!-- xbrl,nx -->
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>1. Nature of Business</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Panera Bread Company and its subsidiaries operate a retail bakery-cafe business and franchising
business under the concept names Panera Bread<sup style="font-size: 85%; vertical-align: text-top">®</sup>, Saint Louis Bread Co.<sup style="font-size: 85%; vertical-align: text-top">®</sup>, and Paradise Bakery &
Café<sup style="font-size: 85%; vertical-align: text-top">®</sup>. As of December 28, 2010, the Company’s retail operations consisted of 662 Company-owned
bakery-cafes and 791 franchise-operated bakery-cafes. The Company specializes in meeting consumer
dining needs by providing high quality food, including the following: fresh baked goods,
made-to-order sandwiches on freshly baked breads, soups, salads, and cafe beverages, and targets
suburban dwellers and workers by offering a premium specialty bakery-cafe experience with a
neighborhood emphasis. Bakery-cafes are principally located in suburban, strip mall, and regional
mall locations and currently operate in the United States and Canada. Bakery-cafes use fresh dough
for their artisan and sourdough breads and bagels. As of December 28, 2010, the Company’s fresh
dough and other product operations, which supply fresh dough, produce, tuna, and cream cheese items
daily to most Company-owned and franchise-operated bakery-cafes, consisted of 22 Company-owned
fresh dough facilities.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<div align="left" style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>2. Summary of Significant Accounting Policies</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Basis of Presentation and Principles of Consolidation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The consolidated financial statements of Panera Bread Company and its subsidiaries (the “Company”)
have been prepared in accordance with generally accepted accounting principles in the United States
(“GAAP”) and under the rules and regulations of the Securities and Exchange Commission (the “SEC”).
The consolidated financial statements consist of the accounts of Panera Bread Company and its
wholly owned direct and indirect subsidiaries. All intercompany balances and transactions have
been eliminated in consolidation.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Fiscal Year</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company’s fiscal year ends on the last Tuesday in December. Each of the Company’s fiscal years
ended December 28, 2010 and December 29, 2009 had 52 weeks. The Company’s fiscal year ended
December 30, 2008 had 53 weeks, with the fourth quarter comprising 14 weeks.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Use of Estimates</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Cash and Cash Equivalents</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company considers all highly liquid investments with an original maturity at the time of
purchase of three months or less to be cash equivalents.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Investments</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In fiscal 2010, the Company’s investments consisted of municipal industrial revenue bonds that it
intends to hold until maturity. In fiscal 2009, the Company’s investments consisted of trading
securities that were stated at fair value, with gains or losses resulting from changes in fair
value recognized in earnings as other expense, net. Management designates the appropriate
classification of its investments at the time of purchase based upon its intended holding period.
See Note 5 for further information with respect to the Company’s investments.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Trade and Other Accounts Receivable, net</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Trade accounts receivable consists primarily of amounts due to the Company from its franchisees for
purchases of fresh dough and other products from the Company’s fresh dough facilities, royalties
due to the Company from franchisee sales, and receivables from credit card sales. The Company does
not require collateral and maintains reserves for potential uncollectible accounts based on
historical losses and existing economic conditions, when relevant. The allowance for doubtful
accounts at December 28, 2010 and December 29, 2009 was $0.2 million and $0.1 million,
respectively.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As of December 28, 2010, other accounts receivable, net consisted primarily of an insurance
receivable for litigation settlements of $7.1 million, tenant allowances due from landlords of $4.0
million, and $3.3 million due from wholesalers of the Company’s gift
cards. As of December 29, 2009, other accounts receivable consisted primarily of tenant allowances
due from landlords of $3.0 million, $2.8 million due from wholesalers of the Company’s gift cards,
and a $3.3 million receivable from the Company’s former Canadian franchisee representing the cost
of the three bakery-cafes Panera developed on behalf of the franchisee (see Note 13 for further
explanation).
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Inventories</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Inventories, which consist of food products, paper goods and supplies, and promotional items, are
valued at the lower of cost or market, with cost determined under the first-in, first-out method.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Property and Equipment</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Property, equipment, and leasehold improvements are stated at cost. Depreciation is provided using
the straight-line method over the estimated useful lives of the assets. Leasehold improvements are
depreciated using the straight-line method over the shorter of their estimated useful lives or the
related reasonably assured lease term. Costs incurred in connection with the development of
internal-use software are capitalized in accordance with the accounting standard for internal-use
software, and are amortized over the expected useful life of the software. The estimated useful
lives used for financial statement purposes are:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td colspan="3" align="center">15-20 years</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Machinery and equipment
</div></td>
<td> </td>
<td colspan="3" align="center">3-10 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture and fixtures
</div></td>
<td> </td>
<td colspan="3" align="center">2-7 years</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">External signage
</div></td>
<td> </td>
<td colspan="3" align="center">3-7 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Software
</div></td>
<td> </td>
<td colspan="3" align="center">3-5 years</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Interest, to the extent it is incurred in connection with the construction of new locations or
facilities, is capitalized. The capitalized interest is recorded as part of the asset to which it
relates and is amortized over the asset’s estimated useful life. No interest was incurred for such
purposes for the fiscal years ended December 28, 2010 and December 29, 2009. Interest costs
capitalized were approximately $0.1 million for fiscal year ended December 30, 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Upon retirement or sale, the cost of assets disposed and their related accumulated depreciation are
removed from the Company’s accounts. Any resulting gain or loss is credited or charged to
operations. Maintenance and repairs are charged to expense when incurred, while certain
improvements are capitalized. The total amounts expensed for maintenance and repairs was $33.8
million, $30.7 million, and $27.4 million for the fiscal years ended December 28, 2010, December
29, 2009, and December 30, 2008, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Goodwill</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill consists of the excess of the purchase price over the fair value of net assets acquired.
Goodwill and indefinite-lived intangible assets recorded in the financial statements are required
to be evaluated for periodic evaluation for impairment when circumstances warrant, or at least once
per year. Goodwill is tested for impairment in accordance with the accounting standard for
goodwill by comparing the carrying value of reporting units to their estimated fair values. The
Company completed annual impairment tests as of the first day of the fiscal fourth quarter of
fiscal 2010, fiscal 2009, and fiscal 2008, none of which identified any impairment as the fair
value of the Company’s reporting units exceeded the associated carrying values.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As quoted market prices for the Company’s reporting units are not available, fair value is
estimated based on the present value of expected future cash flows, with forecasted average growth
rates of approximately four percent and average discount rates of 10 percent used in the fiscal
2010 analysis for the reporting units, which are commensurate with the risks involved in the
reporting units. The Company uses current results, trends, future prospects, and other economic
factors as the basis for expected future cash flows.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Assumptions in estimating future cash flows are subject to a high degree of judgment and
complexity. The Company makes every effort to forecast these future cash flows as accurately as
possible with the information available at the time the forecast is developed. However, changes in
the assumptions and estimates may affect the estimated fair value of the Company’s reporting units,
and could result in goodwill impairment charges in future periods. Factors that have the potential
to create variances between forecasted cash flows and actual results include but are not limited to
(i) fluctuations in sales volumes, (ii) commodity costs, such as wheat and fuel, and (iii)
acceptance of the Company’s pricing actions undertaken in response to rapidly changing commodity
prices and other product costs. Refer to “Forward-Looking Statements” included in the beginning of
the Company’s Form 10-K for further information regarding the impact of estimates of future cash
flows.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The calculation of fair value could increase or decrease depending on changes in the inputs and
assumptions used, such as changes in the financial performance of the reporting units, future
growth rate, and discount rate. In order to evaluate the sensitivity of the fair value
calculations on the goodwill impairment test, the Company applied hypothetical changes to its
projected growth rate and discount rate which the Company believes are considered appropriate.
Based on the goodwill analysis performed as of September 29, 2010, the first day of the Company’s
fourth quarter of fiscal 2010, these hypothetical changes in the Company’s assumptions would not
affect the results of the impairment test, as all reporting units individually still had an excess
of fair value over their respective carrying value.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Other Intangible Assets</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Other intangible assets consist primarily of favorable lease agreements, re-acquired territory
rights, and trademarks. The Company amortizes the fair value of favorable lease agreements over
the remaining related lease terms at the time of the acquisition, which ranged from approximately 2
years to 17 years. The fair value of re-acquired territory rights was based on the present value
of the acquired bakery-cafe cash flows. The Company amortizes the fair value of re-acquired
territory rights over the remaining contractual terms of the re-acquired territory rights at the
time of the acquisition, which ranged from approximately 13 years to 20 years. The fair value of
trademarks is amortized over their estimated useful life of 22 years.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company reviews intangible assets with finite lives for impairment when events or circumstances
indicate these assets might be impaired. When warranted, the Company tests intangible assets with
finite lives for impairment using historical cash flows and other relevant facts and circumstances
as the primary basis for an estimate of future cash flows. As of December 28, 2010, December 29,
2009, and December 30, 2008, no impairment of intangible assets with finite lives had been
recognized. There can be no assurance that future intangible asset impairment tests will not
result in a charge to earnings.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Impairment of Long-Lived Assets</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company evaluates whether events and circumstances have occurred that indicate the remaining
estimated useful life of long-lived assets may warrant revision or that the remaining balance of an
asset may not be recoverable. When appropriate, the Company determines if there is impairment by
comparing anticipated undiscounted cash flows from the related long-lived assets of a bakery-cafe
or fresh dough facility with their respective carrying values. If impairment exists, the amount of
impairment is determined by comparing anticipated discounted cash flows from the related long-lived
assets of a bakery-cafe or a fresh dough facility, which approximates fair value, with their
respective carrying values. In performing this analysis, management considers such factors as
current results, trends, future prospects, and other economic factors. The Company recognized an
impairment loss of $0.1 million and $0.6 million during the fiscal years ended December 28, 2010
and December 29, 2009, respectively, related to a distinct underperforming Company-owned
bakery-cafe within each fiscal year. The loss was recorded in other operating expenses in the
Consolidated Statements of Operations. No impairment of long-lived assets was recorded during the
fiscal year ended December 30, 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Self-Insurance Reserves</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is self-insured for a significant portion of its workers’ compensation, group health,
and general, auto, and property liability insurance with varying deductibles of as much as $0.5
million of individual claims, depending on the type of claim. The Company also purchases aggregate
stop-loss and/or layers of loss insurance in many categories of loss. The Company utilizes third
party actuarial experts’ estimates of expected losses based on statistical analyses of historical
industry data, as well as its own estimates based on the Company’s actual historical data to
determine required self-insurance reserves. The assumptions are closely reviewed, monitored, and
adjusted when warranted by changing circumstances. The estimated accruals for these liabilities
could be affected if actual experience related to the number of claims and cost per claim differs
from these assumptions and historical trends. Based on information known at December 28, 2010, the
Company believes it has provided adequate reserves for its self-insurance exposure. As of December
28, 2010 and December 29, 2009, self-insurance reserves were $20.2 million and $15.9 million,
respectively, and were included in accrued expenses in the Consolidated Balance Sheets. The total
amounts expensed for self-insurance were $35.6 million, $37.1 million, and $33.0 million, for the
fiscal years ended December 28, 2010, December 29, 2009, and December 30, 2008, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Income Taxes</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company completes the provision for income taxes in accordance with the accounting standard for
income taxes in the Company’s consolidated financial statements and accompanying notes. Under this
method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and
liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using
enacted income tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Any effect on deferred tax assets and
liabilities from a change in tax rates is recognized in income in the period that includes the
enactment date.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In accordance with the authoritative guidance on income taxes, the Company establishes additional
provisions for income taxes when, despite the belief that tax positions are fully supportable,
there remain certain positions that do not meet the minimum probability threshold, which is a tax
position that is more likely than not to be sustained upon ultimate settlement with tax authorities
assuming full knowledge of the position and all relevant facts. In the normal course of business,
the Company and its subsidiaries are examined by various Federal, State, foreign, and other tax
authorities. The Company regularly assesses the potential outcomes of these examinations and any
future examinations for the current or prior years in determining the adequacy of its provision for
income taxes. The Company continually assesses the likelihood and amount of potential adjustments
and adjusts the income tax provision, the current tax liability and deferred taxes in the period in
which the facts that give rise to a revision become known. The Company classifies estimated
interest and penalties related to the unrecognized tax benefits as a component of income taxes in
the Consolidated Statements of Operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Capitalization of Certain Development Costs</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has elected to account for construction costs in accordance with the accounting
standard for real estate in the Company’s consolidated financial statements. The Company
capitalizes direct and indirect costs clearly associated with the acquisition, development, design,
and construction of new bakery-cafe locations and fresh dough facilities as these costs have a
future benefit to the Company. The types of specifically identifiable costs capitalized by the
Company include primarily payroll and payroll related taxes and benefit costs incurred within the
Company’s development department. The Company’s development department focuses solely on
activities involving the acquisition, development, design, and construction of bakery-cafes and
fresh dough facilities. The Company does not consider for capitalization payroll or
payroll-related costs incurred in other departments, including general and administrative
functions, as these other departments do not directly support the acquisition, development, design,
and construction of bakery-cafes and fresh dough facilities. The Company uses an activity-based
methodology to determine the amount of costs incurred within the development department for
Company-owned projects, which are capitalized, and those for franchise-operated projects and
general and administrative activities, which both are expensed as incurred. If the Company
subsequently makes a determination that a site for which development costs have been capitalized
will not be acquired or developed, any previously capitalized development costs are expensed and
included in general and administrative expenses in the Consolidated Statements of Operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company capitalized $8.7 million, $8.4 million, and $8.0 million direct and indirect costs
related to the development of Company-owned bakery-cafes for the fiscal years ended December 28,
2010, December 29, 2009, and December 30, 2008, respectively. The Company amortizes capitalized
development costs for each bakery-cafe and fresh dough facility using the straight-line method over
the shorter of their estimated useful lives or the related reasonably assured lease term and
includes such amounts in depreciation and amortization in the Consolidated Statements of
Operations. In addition, the Company assesses the recoverability of capitalized costs through the
performance of impairment analyses on an individual bakery-cafe and fresh dough facility basis
pursuant to the accounting standard for property, plant and equipment, specifically related to the
accounting for the impairment or disposal of long-lived assets.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Deferred Financing Costs</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Debt issuance costs incurred in connection with the issuance of long-term debt are capitalized and
amortized to interest expense based on the related debt agreement using the straight-line method,
which approximates the effective interest method. The unamortized amounts are included in deposits
and other assets in the Consolidated Balance Sheets and were $0.6 million and $0.8 million at
December 28, 2010 and December 29, 2009, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Revenue Recognition</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company records revenues from bakery-cafe sales upon delivery of the related food and other
products to the customer. Revenues from fresh dough and other product sales to franchisees were
recorded upon delivery to the franchisees. Sales of soup and other branded products outside of our
bakery-cafes are generally recognized upon delivery to customers.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company records a liability in the period in which a gift card is issued and proceeds are
received. As gift cards are redeemed, this liability is reduced and revenue is recognized.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Franchise fees are the result of the sale of area development rights and the sale of individual
franchise locations to third parties. The initial franchise fee is generally $35,000 per
bakery-cafe to be developed under an Area Development Agreement (“ADA”). Of this fee, $5,000 is
generally paid at the time of the signing of the ADA and is recognized as revenue when it is
received as it is non-refundable and the Company has to perform no other service to earn this fee.
The remainder of the fee is paid at the time an individual franchise agreement is signed and is
recognized as revenue upon the opening of the bakery-cafe. Franchise fees were $1.4 million,
$1.2 million, and $2.2 million for the fiscal years ended December 28, 2010, December 29, 2009, and
December 30, 2008, respectively. Royalties are generally paid weekly based on the percentage of
franchisee sales specified in each ADA (generally 4 percent to 5 percent of net sales). Royalties
are recognized as revenue when they are earned. Royalties were $84.8 million, $77.1 million, and
$72.6 million for the fiscal years ended December 28, 2010, December 29, 2009, and December 30,
2008, respectively.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company maintains a customer loyalty program referred to as “MyPanera<sup style="font-size: 85%; vertical-align: text-top">TM</sup>” in which
Panera Bread Company customers earn rewards based on registration in the program and purchases
within our Panera Bread bakery-cafes. The Company records the full retail value of loyalty
program rewards as a reduction of net bakery-cafe sales and a liability is established within other
accrued expenses as rewards are earned while considering historical redemption rates. Fully earned
rewards expire if unredeemed after 60 days. The accrued liability related to the Company’s loyalty
program, which is included as a reduction of bakery-cafe sales in the Consolidated Statement of
Operations, was $4.3 million as of December 28, 2010.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Advertising Costs</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">National advertising fund and marketing administration contributions received from
franchise-operated bakery-cafes are consolidated with those from the Company in the Company’s
consolidated financial statements. Liabilities for unexpended funds received from franchisees are
included in accrued expenses in the Consolidated Balance Sheets. The Company’s contributions to
the national advertising and marketing administration funds are recorded as part of general and
administrative expenses in the Consolidated Statements of Operations, while the Company’s own local
bakery-cafe media costs are recorded as part of other operating expenses in the Consolidated
Statements of Operations. The Company’s policy is to record advertising costs as expense in the
period in which the costs are incurred. The Company’s advertising costs include national, regional
and local expenditures utilizing primarily radio, billboards, social networking, television, and
print. The total amounts recorded as advertising expense were $27.4 million, $15.3 million, and
$14.2 million for the fiscal years ended December 28, 2010, December 29, 2009, and December 30,
2008, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Pre-Opening Expenses</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">All pre-opening costs directly associated with the opening of new bakery-cafe locations, which
consists primarily of pre-opening rent expense, labor, and food costs incurred during in-store
training and preparation for opening, but exclude manager training costs which are included in the
Consolidated Statements of Operations, are expensed when incurred.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Rent Expense</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company recognizes rent expense on a straight-line basis over the reasonably assured lease term
as defined in the accounting standard for leases. The reasonably assured lease term for most
bakery-cafe leases is the initial non-cancelable lease term plus one renewal option period, which
generally equates to 15 years. The reasonably assured lease term on most fresh dough facility
leases is the initial non-cancelable lease term plus one to two renewal option periods, which
generally equates to 20 years. In addition, certain of the Company’s lease agreements provide for
scheduled rent increases during the lease terms or for rental payments commencing at a date other
than the date of initial occupancy. The Company includes any rent escalations and construction
period and other rent holidays in its determination of straight-line rent expense. Therefore, rent
expense for new locations is charged to expense beginning with the start of the construction
period.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company records landlord allowances and incentives received which are not related to structural
building improvements as deferred rent in the Consolidated Balance Sheets based on their short-term
or long-term nature. This deferred rent is amortized on a straight-line basis as a reduction of
rent expense. Additionally, the Company records landlord allowances for structural tenant
improvements as a reduction in depreciation expense over the reasonably assured lease term.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Earnings Per Share</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for earnings per common share in accordance with the relevant accounting
guidance which requires companies to present basic earnings per share and diluted earnings per
share. Basic earnings per share is computed by dividing net income attributable to the Company by
the weighted-average number of shares of common stock outstanding during the year. Diluted
earnings per common share is computed by dividing net income attributable to the Company by the
weighted-average number of shares of common stock outstanding and dilutive securities outstanding
during the year.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Foreign Currency Translation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has three Company-owned bakery-cafes in Canada which use the Canadian Dollar as their
functional currency. Assets and liabilities are translated into U.S. dollars using the current
exchange rate in effect at the balance sheet date, while revenues and expenses are translated at
the weighted-average exchange rate during the fiscal period. The resulting translation adjustments
are recorded as a separate component of accumulated other comprehensive income in the Consolidated
Balance Sheet and Consolidated Statements of Stockholders’ Equity. Gains and losses resulting from
foreign currency transactions have not historically been
significant and are included in other expense, net in the Consolidated Statements of Operations.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Fair Value of Financial Instruments</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The carrying amounts of the Company’s financial instruments, which include short-term investments
in trading securities, municipal industrial revenue bonds, accounts receivable, accounts payable,
and other accrued expenses, approximate their fair values due to their short maturities. The
Company’s investments in trading securities are stated at fair value, with gains or losses
resulting from changes in fair value recognized currently in earnings as other expense, net in the
Consolidated Statements of Operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Stock-Based Compensation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for stock-based compensation in accordance with the accounting standard for
stock-based compensation, which requires the Company to measure and record compensation expense in
the Company’s consolidated financial statements for all stock-based compensation awards using a
fair value method. The Company maintains several stock-based incentive plans under which the
Company may grant incentive stock options, non-statutory stock options and stock settled
appreciation rights (collectively, “option awards”) to certain directors, officers, employees and
consultants. The Company also may grant restricted stock and restricted stock units and the
Company offers a stock purchase plan where employees may purchase the Company’s common stock each
calendar quarter through payroll deductions at 85 percent of market value on the purchase date and
the Company recognizes compensation expense on the 15 percent discount.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">For option awards, fair value is determined using the Black-Scholes option pricing model, while
restricted stock is valued using the closing stock price on the date of grant. The Black-Scholes
option pricing model requires the input of subjective assumptions. These assumptions include
estimating the expected term until the option awards are either exercised or canceled, the expected
volatility of the Company’s stock price, for a period approximating the expected term, the
risk-free interest rate with a maturity that approximates the option awards expected term, and the
dividend yield based on the Company’s anticipated dividend payout over the expected term of the
option awards. Additionally, the Company uses its historical experience to estimate the expected
forfeiture rate in determining the stock-based compensation expense for these awards. The fair
value of the awards is amortized over the vesting period. Options and restricted stock generally
vest ratably over a four-year period beginning two years from the date of grant and options
generally have a six-year term. Stock-based compensation expense was included in general and
administrative expenses in the Consolidated Statements of Operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Asset Retirement Obligations</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company recognizes the future cost to comply with lease obligations at the end of a lease as it
relates to tangible long-lived assets in accordance with the accounting standard for the asset
retirement and environmental obligations in the Company’s consolidated financial statements. A
liability for the fair value of an asset retirement obligation along with a corresponding increase
to the carrying value of the related long-lived asset is recorded at the time a lease agreement is
executed. The Company amortizes the amount added to property and equipment and recognizes
accretion expense in connection with the discounted liability over the life of the respective
lease. The estimated liability is based on the Company’s historical experience in closing
bakery-cafes, FDFs, and support centers and the related external cost associated with these
activities. Revisions to the liability could occur due to changes in estimated retirement costs or
changes in lease terms.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Variable Interest Entities</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company applies the updated guidance issued by the FASB on accounting for variable interest
entities (“VIE”), which changes the process for how an enterprise determines which party
consolidates a VIE to a primarily qualitative analysis. The enterprise that consolidates the VIE
(the primary beneficiary) is defined as the enterprise with (1) the power to direct activities of
the VIE that most significantly affect the VIE’s economic performance and (2) the obligation to
absorb losses of the VIE or the right to receive benefits from the VIE. Upon adoption, companies
must reconsider their conclusions on whether an entity should be consolidated and, should a change
result, record the effect on net assets as a cumulative effect adjustment to retained earnings.
The Company does not possess any ownership interests in franchise entities or other affiliates.
The franchise agreements are designed to provide the franchisee with key decision-making ability to
enable it to oversee its operations and to have a significant impact on the success of the
franchise, while the Company’s decision-making rights are related to protecting its brand. Based
upon its analysis of all the relevant facts and considerations of the franchise entities and other
affiliates, the Company has concluded that these entities are not variable interest entities and
they have not been consolidated.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Accounting Standards Issued Not Yet Adopted</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On December 30, 2009, the Company adopted the updated guidance issued by the Financial Accounting
Standards Board (“FASB”) related to fair value measurements and disclosures, which requires a
reporting entity to separately disclose the amounts of significant
transfers in and out of Level 1 and Level 2 fair value measurements and to describe the reasons for
the transfers. The updated guidance also requires that an entity provide fair value measurement
disclosures for each class of assets and liabilities and disclosures about the valuation techniques
and inputs used to measure fair value for both recurring and non-recurring Level 2 and Level 3 fair
value measurements. This guidance was effective for interim or annual financial reporting periods
beginning after December 15, 2009. The adoption of this updated guidance did not have an impact on
the Company’s consolidated results of operations or financial condition. In addition, the updated
guidance requires that in the reconciliation for fair value measurements using significant
unobservable inputs, or Level 3, a reporting entity separately disclose information about
purchases, sales, issuances and settlements on a gross basis rather than as one net number. This
guidance is effective for fiscal years beginning after December 15, 2010 and for interim periods
therein. Therefore, the Company has not yet adopted the guidance with respect to the roll forward
activity in Level 3 fair value measurements. The Company expects that the adoption of this new
guidance will not have a material effect on its consolidated financial position or results of
operations.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>3. Business Combinations</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On September 29, 2010 the Company purchased substantially all the assets and certain liabilities of
37 bakery-cafes and the area development rights from its New Jersey franchisee for a purchase price
of approximately $55.0 million. Approximately $52.2 million of the purchase price, as well as
related transaction costs, were paid on September 29, 2010, with $2.8 million retained by the
Company for certain holdbacks. The holdbacks are primarily for certain indemnifications and expire
on the first anniversary of the transaction closing date, September 29, 2011, with any remaining
holdback amounts reverting to the prior franchisee. As a result of the acquisition, the Company
gained control of the 37 bakery-cafes and expanded Company-owned operations into New Jersey. The
Consolidated Statements of Operations include the results of operations from the operating
bakery-cafes from the date of the acquisition.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The acquired business contributed revenues of $24.8 million and net income of $1.9 million for the
period from September 29, 2010 through December 28, 2010. The following supplemental pro forma
information has been prepared for comparative purposes and does not purport to be indicative of
what would have occurred had the acquisition been made on December 31, 2008 or December 30, 2009,
nor are they indicative of any future results (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Pro Forma for the Fiscal Year Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Bakery-cafe sales, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,606,455</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,433,686</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td align="right">119,621</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90,710</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">These amounts have been calculated after applying the Company’s accounting policies and adjusting
the results of the New Jersey bakery-cafes to reflect the additional depreciation and amortization
that would have been charged assuming the fair value adjustments to property and equipment and
intangible assets had been applied from December 31, 2008, together with the consequential tax
impacts.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company allocated the purchase price to the tangible and intangible assets acquired in the
acquisition at their estimated fair values with the remainder allocated to tax deductible goodwill
as follows: $0.5 million to inventories, $19.9 million to property and equipment, $31.2 million to
intangible assets, which represents the fair value of re-acquired territory rights and favorable
lease agreements, $1.2 million to liabilities, and $4.6 million to goodwill. The fair value
measurement of tangible and intangible assets and liabilities as of the acquisition date is based
on significant inputs not observed in the market and thus represents a Level 3 measurement.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill recorded in connection with this acquisition is attributable to the workforce of the
acquired bakery-cafes and synergies expected to arise from cost savings opportunities. All of the
recorded goodwill is anticipated to be tax deductible and is included in the Company Bakery-Cafe
Operations segment.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On April 27, 2010, the Company sold substantially all of the assets of three bakery-cafes and the
area development rights for Mobile, Alabama to an existing franchisee, for a sales price of
approximately $2.2 million, resulting in a gain of approximately $0.6 million, which is classified
in other expense, net in the Consolidated Statements of Operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">There were no business combinations consummated during the fiscal years ended December 29, 2009 and
December 30, 2008. Subsequent to the original allocation of purchase price for the acquisitions
which occurred in 2007 to the various tangible and intangible assets, the Company had approximately
$0.1 million of adjustments during fiscal 2009, which resulted in a $0.1 million increase to
goodwill, and $0.2 million of adjustments during fiscal 2008, which resulted in a net $0.2 million
increase to goodwill in the Consolidated Balance Sheets as a result of the settlement of certain
purchase price adjustments.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the fiscal years ended December 30, 2008, the Company paid approximately $2.5 million,
including accrued interest, of previously accrued acquisition purchase price in accordance with the
asset purchase agreements, respectively. There were no accrued purchase price payments made in the
fiscal years ended December 28, 2010 or December 29, 2009. There was $5.0 million and $2.3
million, accrued for contingent or accrued purchase price remaining as of December 28, 2010 and
December 29, 2009, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:MinorityInterestDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>4. Noncontrolling Interest</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Effective December 31, 2008, the first day of fiscal 2009, the Company implemented the accounting
standard for the reporting of noncontrolling interests in the Company’s consolidated financial
statements and accompanying notes. This standard changed the accounting and reporting for
noncontrolling interests, which are to be recorded initially at fair market value and reported as
noncontrolling interests as a component of equity, separate from the parent company’s equity.
Purchases or sales of noncontrolling interests that do not result in a change in control are to be
accounted for as equity transactions. In addition, net income attributable to the noncontrolling
interest is to be included in consolidated net income in the Consolidated Statements of Operations
and upon a loss of control, the interest sold, as well as any interest retained, will be recorded
at fair value with any gain or loss recognized in earnings. The Company has applied these
presentation and disclosure requirements retrospectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On September 10, 2008, the Company’s Canadian subsidiary, Panera Bread ULC, as lender, entered into
a Cdn. $3.5 million secured revolving credit facility agreement and franchise agreements with
Millennium Bread Inc. (“Millennium”) and certain of Millennium’s present and future subsidiaries
(the “Franchise Guarantors”), pursuant to which Millennium would operate three Panera Bread
bakery-cafes in Ontario, Canada.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On March 30, 2010, PB Biscuit, ULC (“PB Biscuit”) was formed by Panera Bread ULC through the
contribution of its Cdn. $3.5 million note receivable from Millennium and cash. On March 31, 2010,
PB Biscuit acquired certain assets and liabilities and the operations of Millennium’s three Panera
Bread bakery-cafes. The transaction was accounted for as an acquisition under the business
combination authoritative guidance. In exchange for the bakery-cafe operations and certain assets
and liabilities, PB Biscuit assigned the Cdn. $3.5 million note receivable to and issued
non-controlling interest to Millennium at a fair value of $0.6 million (28.5 percent ownership of
PB Biscuit’s voting shares), for a total consideration of $4.1 million, subject to certain closing
adjustments. The Consolidated Statements of Operations include the results of operations from the
operating bakery-cafes from the date of the acquisition. This non-cash transaction is excluded from
the Consolidated Statements of Cash Flows for the year ended December 28, 2010. The pro forma
impact of the acquisition on prior periods is not presented, as the impact was not material to
reported results. These acquired bakery-cafes are included in the Company bakery-cafe operations
segment. The Company allocated the purchase price to the tangible and intangible assets acquired in
the acquisition at their estimated fair values with the remainder allocated to tax deductible
goodwill as follows: $2.3 million to property and equipment, $0.5 million of net assumed current
liabilities, and $2.3 million to goodwill.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On December 28, 2010, the Company purchased the remaining non-controlling interest of Millennium
for $0.7 million. The transaction was accounted for as an equity transaction, by adjusting the
carrying amount of the noncontrolling interest balance to reflect the change in the Company’s
ownership interest in Millennium, with the difference between fair value of the consideration paid
and the amount by which the noncontrolling interest was adjusted recognized in equity attributable
to the Company.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table illustrates the effect on the Company’s equity of its purchase of the remaining
28.5 percent of outstanding stock of Millennium on December 28, 2010 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to the Company
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">111,866</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Decrease in equity for purchase of noncontrolling interest
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(367</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Change from net income attributable to the Company and the purchase of
noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">111,499</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On February 1, 2007, the Company purchased 51 percent of the outstanding stock of Paradise, then
owner and operator of 22 bakery-cafes and one commissary and franchisor of 22 bakery-cafes and one
commissary, for a purchase price of $21.1 million plus $0.5 million in acquisition costs. As a
result, Paradise became a majority-owned consolidated subsidiary of the Company, with its operating
results included in the Company’s Consolidated Statements of Operations and the 49 percent portion
of equity attributable to Paradise presented as minority interest, and subsequently as
noncontrolling interest, in the Company’s Consolidated Balance Sheets. In connection with this
transaction, the Company received the right to purchase the remaining 49 percent of the outstanding
stock of Paradise after January 1, 2009 at a contractually determined value, which approximated
fair value. In addition, the related agreement provided that if the Company did not exercise its
right to purchase the remaining 49 percent of the outstanding stock of Paradise by June 30, 2009,
the remaining Paradise owners had the right to purchase the Company’s 51 percent interest in
Paradise thereafter for $21.1 million.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On June 2, 2009, the Company exercised its right to purchase the remaining 49 percent of the
outstanding stock of Paradise, excluding certain agreed upon assets totaling $0.7 million, for a
purchase price of $22.3 million, $0.1 million in transaction costs, and settlement of $3.4 million
of debt owed to the Company by the shareholders of the remaining 49 percent of Paradise.
Approximately $20.0 million of the purchase price, as well as the transaction costs, were paid on
June 2, 2009, with $2.3 million retained by the Company for certain holdbacks. The holdbacks are
primarily for certain indemnifications and expire on the second anniversary of the transaction
closing date, June 2, 2011, with any remaining holdback amounts reverting to the prior shareholders
of the remaining 49 percent of Paradise. The transaction was accounted for as an equity
transaction, by adjusting the carrying amount of the noncontrolling interest balance to reflect the
change in the Company’s ownership interest in Paradise, with the difference between fair value of
the consideration paid and the amount by which the noncontrolling interest was adjusted recognized
in equity attributable to the Company.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table illustrates the effect on the Company’s equity of its purchase of the remaining
49 percent of outstanding stock of Paradise on June 2, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to the Company
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">86,050</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Decrease in equity for purchase of noncontrolling interest
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18,799</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Change from net income attributable to the Company and the purchase of
noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">67,251</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During fiscal 2009, the Company recorded an adjustment of $0.7 million to noncontrolling interest
to reflect deferred taxes prior to the purchase of the remaining 49 percent of Paradise. This
adjustment was recorded to additional paid-in capital as a result of the June 2, 2009 purchase of
the remainder of Paradise.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>5. Fair Value Measurements</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Effective December 26, 2007, the first day of fiscal 2008, the Company implemented the accounting
standard regarding disclosures for financial assets, financial liabilities, non-financial assets,
and non-financial liabilities recognized or disclosed at fair value in the consolidated financial
statements on a recurring basis (at least annually). Effective December 31, 2008, the first day of
fiscal 2009, the Company also implemented the accounting standard for non-financial assets and
non-financial liabilities reported or disclosed at fair value on a non-recurring basis, the
adoption of which had no impact on fiscal 2009. This standard defines fair value as the exchange
price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. This standard also
establishes a fair value hierarchy which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The following
describes the three levels of inputs used to measure fair value:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="7%"> </td>
<td width="3%"> </td>
<td width="90%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Level 1
</div></td>
<td> </td>
<td align="left" valign="top">Quoted market prices in active markets for identical assets or liabilities.</td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Level 2
</div></td>
<td> </td>
<td align="left" valign="top">Observable market based inputs or unobservable inputs that are corroborated by market data.</td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Level 3
</div></td>
<td> </td>
<td align="left" valign="top">Unobservable inputs that are not corroborated by market data.</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On December 30, 2009, the Company adopted the updated guidance issued by the Financial Accounting
Standards Board (“FASB”) related to fair value measurements and disclosures, which requires a
reporting entity to separately disclose the amounts of significant transfers in and out of Level 1
and Level 2 fair value measurements and to describe the reasons for the transfers. The updated
guidance also requires that an entity provide fair value measurement disclosures for each class of
assets and liabilities and disclosures about the valuation techniques and inputs used to measure
fair value for both recurring and non-recurring Level 2 and Level 3 fair value measurements. The
adoption of this updated guidance did not have an impact on the Company’s consolidated results of
operations or financial condition.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company’s $44.5 million
and $115.9 million in cash equivalents at December 28, 2010 and
December 29, 2009, respectively, were carried at fair value in the Consolidated Balance Sheets
based on quoted market prices for identical securities (Level 1 inputs). The Company’s remaining
cash balance in the Consolidated Balance Sheets is held in FDIC insured accounts. In fiscal year 2010,
the Company invested in municipal industrial revenue bonds in the amount of $1.5 million and
valued these bonds using Level 2 inputs as they can be corroborated by market data.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Historically, the Company invested a portion of its cash balances on hand in a private placement of
units of beneficial interest in the Columbia Strategic Cash Portfolio, which was an enhanced cash
fund previously sold as an alternative to traditional money-market funds. Prior to the fourth
quarter of fiscal 2007, the amounts were appropriately classified as trading securities in cash and
cash equivalents in the Consolidated Balance Sheets as the fund was considered both short-term and
highly liquid in nature. The Columbia Strategic Cash Portfolio included investments in certain
asset backed securities and structured investment vehicles that were collateralized by sub-prime
mortgage securities or related to mortgage securities, among other assets. As a result of adverse
market conditions that unfavorably affected the fair value and liquidity availability of collateral
underlying the Columbia Strategic Cash Portfolio, it was overwhelmed with withdrawal requests from
investors and the Columbia Strategic Cash Portfolio was closed with a restriction placed upon the
cash redemption ability of its holders in the fourth quarter of fiscal 2007. As such, the Company
classified the Columbia Strategic Cash Portfolio units in short-term and long-term investments
rather than cash and cash equivalents in the Consolidated Balance Sheets and carried the
investments at fair value.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As the Columbia Strategic Cash Portfolio units were no longer trading and, therefore, had little or
no price transparency, the Company assessed the fair value of the underlying collateral for the
Columbia Strategic Cash Portfolio through review of current investment ratings, as available,
coupled with the evaluation of the liquidation value of assets held by each investment and their
subsequent distribution of cash. The Company then utilized this assessment of the underlying
collateral from multiple indicators of fair value, which were then adjusted to reflect the expected
timing of disposition and market risks to arrive at an estimated fair value of the Columbia
Strategic Cash Portfolio units. During fiscal 2009, the Company received $5.5 million of cash
redemptions, which fully redeemed the Company’s remaining units in the Columbia Strategic Cash
Portfolio. The Columbia Strategic Cash Portfolio units had an estimated fair value of $0.650 per
unit, or $4.1 million, as of December 30, 2008, and $0.960 per unit, or $23.2 million, as of the
date of adopting the fair value accounting standard, December 26, 2007. Based on the valuation
methodology used to determine the fair value, the Columbia Strategic Cash Portfolio was classified
within Level 3 of the fair value hierarchy. Realized and unrealized gains/(losses) relating to the
Columbia Strategic Cash Portfolio were classified in other expense, net in the Consolidated
Statements of Operations. The following table sets forth a summary of the changes in the fair
value of the Company’s Level 3 financial asset for the period indicated (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,126</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net realized and unrealized gains
</div></td>
<td> </td>
<td> </td>
<td align="right">1,339</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Redemptions
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,465</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:InventoryDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>6. Inventories</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Inventories consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Food:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fresh dough facilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Raw materials
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,338</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,573</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Finished goods
</div></td>
<td> </td>
<td> </td>
<td align="right">261</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">275</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Bakery-cafes:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Raw materials
</div></td>
<td> </td>
<td> </td>
<td align="right">8,780</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,304</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Paper goods
</div></td>
<td> </td>
<td> </td>
<td align="right">2,966</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,143</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:45px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">14,345</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12,295</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>7. Property and Equipment</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Major classes of property and equipment consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">416,286</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">375,689</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Machinery and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">259,966</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">236,196</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture and fixtures
</div></td>
<td> </td>
<td> </td>
<td align="right">78,349</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68,172</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">External signage
</div></td>
<td> </td>
<td> </td>
<td align="right">19,766</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,848</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Smallwares
</div></td>
<td> </td>
<td> </td>
<td align="right">18,758</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,144</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Construction in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">29,531</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,880</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">822,656</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">731,929</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: accumulated depreciation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(378,562</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(328,145</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">444,094</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">403,784</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company recorded depreciation expense related to these assets of $66.7 million, $65.9 million,
and $65.9 million for the fiscal years ended December 28,
2010, December 29, 2009, and December 28, 2008, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:ScheduleOfGoodwillTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>8. Goodwill</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following is a reconciliation of the beginning and ending balances of the Company’s goodwill by
reportable segment at December 28, 2010 and December 29, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Company Bakery-</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Franchise</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fresh Dough</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cafe Operations</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Operations</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Operations</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance December 30, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">83,705</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,934</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,695</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">87,334</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill arising from acquisitions
</div></td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of December 29, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">83,852</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,934</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,695</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">87,481</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisition of Canada franchisee
</div></td>
<td> </td>
<td> </td>
<td align="right">2,336</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,336</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisition of New Jersey franchisee
</div></td>
<td> </td>
<td> </td>
<td align="right">4,589</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,589</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Currency translation
</div></td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of December 28, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">90,813</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,934</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,695</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">94,442</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill accumulated amortization, recognized under the previous authoritative guidance for
accounting for goodwill, was $7.9
million at December 28, 2010 and December 29, 2009. The Company has never reported a goodwill
impairment charge.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:IntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>9. Other Intangible Assets</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Other intangible assets consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Net</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Net</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademark
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,610</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(996</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">4,614</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,610</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(742</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">4,868</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Re-acquired territory rights
</div></td>
<td> </td>
<td> </td>
<td align="right">43,729</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,757</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">39,972</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,629</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,357</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">12,272</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Favorable leases
</div></td>
<td> </td>
<td> </td>
<td align="right">4,836</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,020</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,816</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,776</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(721</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,055</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total other intangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">54,175</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,773</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">48,402</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,015</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,820</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">19,195</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Amortization expense on these intangible assets for the fiscal years ended December 28, 2010,
December 29, 2009, and December 30, 2008, was approximately: $2.0 million, $1.3 million, and $1.3
million respectively. Future amortization expense on these intangible assets as of December 28,
2010 is estimated to be approximately: $4.1 million in 2011, $4.0 million in 2012, $4.0 million in
2013, $3.9 million in 2014, $3.9 million in 2015 and $28.5 million thereafter.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - pnra:AccruedExpensesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>10. Accrued Expenses</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Accrued expenses consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unredeemed gift cards
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47,716</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,454</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Compensation and related employment taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">43,788</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,416</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Insurance
</div></td>
<td> </td>
<td> </td>
<td align="right">20,212</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,934</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Taxes, other than income tax
</div></td>
<td> </td>
<td> </td>
<td align="right">16,281</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,072</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital expenditures
</div></td>
<td> </td>
<td> </td>
<td align="right">13,057</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,108</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Advertising
</div></td>
<td> </td>
<td> </td>
<td align="right">9,866</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,465</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Litigation settlement (Note 13)
</div></td>
<td> </td>
<td> </td>
<td align="right">7,125</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Rent
</div></td>
<td> </td>
<td> </td>
<td align="right">7,084</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,019</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fresh dough operations
</div></td>
<td> </td>
<td> </td>
<td align="right">5,071</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,263</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred purchase price
</div></td>
<td> </td>
<td> </td>
<td align="right">5,040</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,264</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loyalty program
</div></td>
<td> </td>
<td> </td>
<td align="right">4,280</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Utilities
</div></td>
<td> </td>
<td> </td>
<td align="right">3,547</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,163</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">1,962</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,334</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">19,141</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,350</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">204,170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">135,842</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:ScheduleOfLineOfCreditFacilitiesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>11. Credit Facility</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On March 7, 2008, the Company and certain of its direct and indirect subsidiaries, as guarantors,
entered into an amended and restated credit agreement (the “Amended and Restated Credit Agreement”)
with Bank of America, N.A., and other lenders party thereto to amend and restate in its entirety
the Company’s Credit Agreement, dated as of November 27, 2007, by and among the Company, Bank of
America, N.A., and the lenders party thereto (the “Original Credit Agreement”). The Amended and
Restated Credit Agreement provides for a secured revolving credit facility of $250.0 million. The
borrowings under the Amended and Restated Credit Agreement
bear interest, at the Company’s option at the time each loan is made, at either (a) the Base Rate
determined by reference to the higher of (1) the prime rate of Bank of America, N.A., as
administrative agent, or (2) the Federal Funds Rate plus 0.50 percent, or (b) LIBOR plus an
Applicable Rate, ranging from 0.75 percent to 1.50 percent, based on the Company’s Consolidated
Leverage Ratio, as each term is defined in the Amended and Restated Credit Agreement. The Company
also pays commitment fees for the unused portion of the credit facility on a quarterly basis equal
to the Applicable Rate for commitment fees times the actual daily unused commitment for that
calendar quarter. The Applicable Rate for commitment fees is between 0.15 percent and 0.30 percent
based on the Company’s Consolidated Leverage Ratio.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Amended and Restated Credit Agreement includes usual and customary covenants for a credit
facility of this type, including covenants limiting liens, dispositions, fundamental changes,
investments, indebtedness, and certain transactions and payments. In addition, the Amended and
Restated Credit Agreement also requires the Company satisfy two financial covenants at the end of
each fiscal quarter for the previous four consecutive fiscal quarters: (1) a consolidated leverage
ratio less than or equal to 3.25 to 1.00, and (2) a consolidated fixed charge coverage ratio of
greater than or equal to 2.00 to 1.00. The credit facility, which is collateralized by the capital
stock of the Company’s present and future material subsidiaries, will become due on March 7, 2013,
subject to acceleration upon certain specified events of default, including breaches of
representations or covenants, failure to pay other material indebtedness or a change of control of
the Company, as defined in the Amended and Restated Credit Agreement.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Amended and Restated Credit Agreement allows the Company from time to time to request that the
credit facility be further increased by an amount not to exceed, in the aggregate, $150.0 million,
subject to receipt of lender commitments and other conditions precedent. The Company has not
exercised these requests for increases in available borrowings as of December 28, 2010. The
proceeds from the credit facility will be used for general corporate purposes, including working
capital, capital expenditures, and permitted acquisitions and share repurchases.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As of December 28, 2010 and December 29, 2009, the Company had no loans outstanding under the
Amended and Restated Credit Agreement. The Company incurred $0.4 million of commitment fees for
the fiscal years ended December 28, 2010 and December 29, 2009. As of December 28, 2010 and
December 29, 2009, the Company was in compliance with all covenant requirements in the Amended and
Restated Credit Agreement, and accrued interest related to the commitment fees on the Amended and
Restated Credit Agreement was $0.1 million.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:AcceleratedShareRepurchasesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>12. Share Repurchase Authorization</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On November 17, 2009, the Company’s Board of Directors approved a three year share repurchase
authorization of up to $600.0 million of the Company’s Class A common stock, pursuant to which
share repurchases may be effected from time to time on the open market or in privately negotiated
transactions, and the Company may make such repurchases under a Rule 10b5-1 Plan. Repurchased
shares may be retired immediately and resume the status of authorized but unissued shares or they
may be held by us as treasury stock. The repurchase authorization may be modified, suspended, or
discontinued by the Board of Directors at any time. Under the share repurchase authorization the
Company repurchased a total of 1,905,540 shares of the Company’s Class A common stock at a
weighted-average price of $78.72 per share for an aggregate purchase price of $150.0 million in
fiscal 2010. As of the date of this report, under the share repurchase authorization, the Company
has repurchased a total of 1,932,969 shares of its Class A common stock at a weighted-average price
of $78.51 per share for an aggregate purchase price of approximately $152.0 million. The Company
has approximately $448.0 million available under the existing $600.0 million repurchase
authorization.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On November 27, 2007, in connection with a share repurchase authorization approved by the Company’s
Board of Directors on November 20, 2007, the Company entered into a written trading plan in
compliance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, to purchase up
to an aggregate of $75.0 million of the Company’s Class A common stock, subject to maximum per
share purchase price. The Company entered into a credit facility that initially provided for $75.0
million in secured loans to the Company. Proceeds from the credit facility were used to finance
the share repurchase authorization. See Note 11 for further information with respect to the credit
facility. Under the share repurchase authorization, the Company repurchased a total of 752,930
shares of its Class A common stock at a weighted-average price of $36.02 per share for an aggregate
purchase price of $27.1 million during the fiscal year ended December 25, 2007. During the fiscal
year ended December 30, 2008, the Company repurchased a total of 1,413,358 shares of its Class A
common stock at a weighted-average price of $33.87 per share for an aggregate purchase price of
$47.9 million, which completed its share repurchase authorization. Shares repurchased under the
authorization were retired immediately and resumed the status of authorized but unissued shares.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In addition, the Company has repurchased shares of its Class A common stock through a share
repurchase authorization approved by its Board of Directors from participants of the Panera Bread
1992 Stock Incentive Plan and the Panera Bread 2006 Stock Incentive
Plan, which are netted and surrendered as payment for applicable tax withholding on the vesting of
their restricted stock. Shares surrendered by the participants are repurchased by the Company
pursuant to the terms of those plans and the applicable award agreements and not pursuant to
publicly announced share repurchase authorizations. See Note 16 for further information with
respect to the Company’s repurchase of the shares.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>13. Commitments and Contingent Liabilities</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Lease Commitments</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is obligated under non-cancelable operating leases for its bakery-cafes, fresh dough
facilities and trucks, and support centers. Lease terms for its trucks are generally for five to
seven years. Lease terms for its bakery-cafes, fresh dough facilities, and support centers are
generally for ten years with renewal options at certain locations and generally require the Company
to pay a proportionate share of real estate taxes, insurance, common area, and other operating
costs. Many bakery-cafe leases provide for contingent rental (i.e., percentage rent) payments
based on sales in excess of specified amounts. Certain of the Company’s lease agreements provide
for scheduled rent increases during the lease terms or for rental payments commencing at a date
other than the date of initial occupancy.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Aggregate minimum requirements under non-cancelable operating leases, excluding contingent
payments, as of December 28, 2010, were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="1%"> </td>
<td width="9%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" colspan="2" align="center" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2012</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2013</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2014</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2015</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Thereafter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="left">$</td>
<td align="right">
<div style="margin-left:15px; text-indent:-15px">93,303
</div></td>
<td> </td>
<td> </td>
<td align="right">94,444</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">94,566</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">92,959</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">91,013</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">540,065</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,006,350</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Rental expense under operating leases was approximately $87.4 million, $79.9 million, and $77.9
million, in fiscal 2010, fiscal 2009, and fiscal 2008, respectively, which included contingent
(i.e. percentage rent) expense of $1.1 million, $0.8 million, and $1.1 million, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In accordance with the accounting guidance for asset retirement obligations the Company complies
with lease obligations at the end of a lease as it relates to tangible long-lived assets. The
liability as of December 28, 2010 and December 29, 2009 was $5.2 million and $4.3 million,
respectively, and is included in other long-term liabilities in the Consolidated Balance Sheets.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the first quarter of fiscal 2008, the Company recorded a reserve of $1.2 million relating to
the termination of operating leases for specific sites, which the Company determined not to
develop. During fiscal 2010, the Company, settled two leases, and made a decision to open one
bakery-cafe resulting in a decrease in the reserve of approximately $0.4 million, offset by an
increase of $0.2 million related to a revised sublet factor for a specified cafe. No other
significant changes were made to the accrual throughout fiscal 2010. As of December 28, 2010, the
Company had approximately $0.6 million accrued in its Consolidated Balance Sheets relating to the
termination of these specific leases. During fiscal 2009, the Company made required lease payments
on certain of these sites, settled one lease, and made a decision to open two bakery-cafes
resulting in a decrease in the reserve of approximately $0.5 million. The Company increased its
reserve by $0.4 million for the termination of operating leases for three additional sites it
closed or determined not to develop. No other significant changes were made to the accrual
throughout fiscal 2009. As of December 29, 2009, the Company had approximately $0.8 million
accrued in its Consolidated Balance Sheets relating to the termination of these specific leases.
During fiscal 2008, the Company settled one lease and decreased the reserve by approximately $0.3
million. No other significant changes were made to the accrual throughout fiscal 2008. As of
December 30, 2008, the Company had approximately $0.9 million accrued in its Consolidated Balance
Sheets relating to the termination of these specific leases.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In connection with the Company’s relocation of its St. Louis, Missouri support center in the third
quarter of fiscal 2010, it simultaneously entered into a capital lease of $1.5 million for certain
personal property and purchased municipal industrial revenue bonds of a similar amount from St.
Louis County, Missouri.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Lease Guarantees</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As of December 28, 2010, the Company guaranteed operating leases of 27 franchisee or affiliate
bakery-cafes and one location of the Company’s former Au Bon Pain division, or its franchisees,
which the Company accounted for in accordance with the accounting requirements for guarantees.
These leases have terms expiring on various dates from December 31, 2010 to December 31, 2023 and
have a potential amount of future rental payments of approximately $24.3 million as of December 28,
2010. The obligation from these leases will generally continue to decrease over time as these
operating leases expire. The Company has not recorded a liability
for certain of these guarantees as they arose prior to the implementation of the accounting
requirements for guarantees and, unless modified, are exempt from its requirements. The Company
has not recorded a liability for those guarantees issued after the effective date of the accounting
requirements because the fair value of each such lease guarantee was determined by the Company to
be insignificant based on analysis of the facts and circumstances of each such lease and each such
franchisee’s performance, and the Company did not believe it was probable it would be required to
perform under any guarantees at the time the guarantees were issued. The Company has not had to
make any payments related to any of these guaranteed leases. Au Bon Pain or the applicable
franchisees continue to have primary liability for these operating leases. As of December 28,
2010, future commitments under these leases were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="1%"> </td>
<td width="9%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2012</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2013</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2014</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2015</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Thereafter</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="left">$</td>
<td align="right">
<div style="margin-left:15px; text-indent:-15px">3,304
</div></td>
<td> </td>
<td> </td>
<td align="right">3,084</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,068</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,937</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,149</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,736</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24,278</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Employee Commitments</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has executed Confidential and Proprietary Information and Non-Competition Agreements
(“Non-Compete Agreements”) with certain employees. These Non-Compete Agreements contain a
provision whereby employees would be due a certain number of weeks of their salary if their
employment was terminated by the Company as specified in the Non-Compete Agreement. The Company
has not recorded a liability for these amounts potentially due employees. Rather, the Company will
record a liability for these amounts when an amount becomes due to an employee in accordance with
the appropriate authoritative literature. As of December 28, 2010, the total amount potentially
owed employees under these Non-Compete Agreements was $12.8 million.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Related Party Credit Agreement</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On September 10, 2008, the Company’s Canadian subsidiary, Panera Bread ULC, as lender, entered into
a Cdn. $3.5 million secured revolving credit facility agreement and franchise agreements with
Millennium Bread Inc., (“Millennium”), as borrower, and certain of Millennium’s present and future
subsidiaries (the “Franchisee Guarantors”), pursuant to which Millennium would operate three Panera
Bread bakery-cafes in Ontario, Canada. On April 7, 2009, Millennium requested a Cdn. $3.5 million
advance under the credit agreement for payment of the costs to develop the bakery-cafes, which was
included in other accounts receivable in the Consolidated Balance Sheet as of December 29, 2009.
The proceeds from the credit facility were used by Millennium to pay costs to develop and construct
the Franchisee Guarantors bakery-cafes and for their day-to-day operating requirements. On March
31, 2010, the credit facility was terminated through a separate transaction with Millennium, as
described in Note 4.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Legal Proceedings</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On January 25, 2008 and February 26, 2008, purported class action lawsuits were filed against the
Company and three of the Company’s current or former executive officers by the Western Washington
Laborers-Employers Pension Trust and Sue Trachet, respectively, on behalf of investors who
purchased the Company’s common stock during the period between November 1, 2005 and July 26, 2006.
Both lawsuits were filed in the United States District Court for the Eastern District of Missouri,
St. Louis Division. Each complaint alleges that the Company and the other defendants violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and Rule 10b-5 under the Exchange Act in connection with the Company’s disclosure of system-wide
sales and earnings guidance during the period from November 1, 2005 through July 26, 2006. Each
complaint seeks, among other relief, class certification of the lawsuit, unspecified damages, costs
and expenses, including attorneys’ and experts’ fees, and such other relief as the Court might find
just and proper. On June 23, 2008, the lawsuits were consolidated and the Western Washington
Laborers-Employers Pension Trust was appointed lead plaintiff. On August 7, 2008, the plaintiff
filed an amended complaint, which extended the class period to November 1, 2005 through July 26,
2007. On October 6, 2008, the Company filed a motion to dismiss all of the claims in this lawsuit.
Following filings by both parties on the Company’s motion to dismiss, on June 25, 2009, the Court
converted the Company’s motion to one for summary judgment and denied it without prejudice. On
August 10, 2009, the Company filed a new motion for summary judgment. On September 9, 2009, the
plaintiff filed a request to deny or continue the Company’s motion for summary judgment to allow
the plaintiff to conduct discovery. Following a hearing and subsequent filings by both parties on
the plaintiff’s request for discovery, on November 6, 2009, the Court denied the plaintiff’s
request. On March 16, 2010, the Court granted in part and denied in part the Company’s motion for
summary judgment. On April 5, 2010, the Court granted a joint motion by the parties to stay the
case through July 6, 2010, which stay was subsequently extended by the Court until July 30, 2010,
pending an attempt by the parties to resolve through mediation. On August 30, 2010 the Company
answered the complaint. On December 3, 2010, the parties filed a joint motion to stay the case
pending the submission of a stipulation of settlement and the plaintiff’s motion for preliminary
approval, to be filed on or before January 28, 2011, which stay was extended until February 11,
2011. On February 11, 2011, the parties filed with the Court a Stipulation of Settlement regarding
the class action lawsuit. Under the terms of the Stipulation of Settlement, the Company’s primary
directors and officers liability insurer will deposit $5.7 million into a settlement fund for
payment to class members, plaintiff’s attorneys’ fees and costs of administering the settlement.
The settlement must be approved by the Court before becoming effective. The Stipulation of
Settlement contains no admission of wrongdoing. The Company and the other defendants have
maintained and continue to deny liability and wrongdoing of any kind with respect to the claims
made in the class action lawsuit. However, given the potential cost and burden of continued
litigation, the Company believes the settlement is in its best interests and the best interests of
its stockholders. On February 22, 2011, the Court preliminarily approved the settlement and scheduled
a settlement hearing on June 22, 2011. If the Court grants final approval of the Stipulation of Settlement, the Court
will dismiss the class action lawsuit with prejudice and the plaintiff will be deemed to have
released all claims against the Company relating to the allegations in the class action. The
Company can provide no assurance that the Court will approve the Stipulation of Settlement. If the
Court does not approve the Stipulation of Settlement, the Company will continue to defend against
these claims, which could have a material adverse effect on its financial condition and business.
If these matters were concluded in a manner adverse to the Company, it could be required to pay
substantially more in damages than the amount provided for in the Stipulation of Settlement. In
addition, the costs to the Company of defending any litigation or other proceeding, even if
resolved in its favor, could be substantial. Such litigation could also substantially divert the
attention of its management and resources in general. The amount to be deposited by the
Company’s primary directors and officers liability insurer into the settlement fund of
$5.7 million is included in other accounts receivable and accrued expenses in the
Company’s Consolidated Balance Sheets.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On February 22, 2008, a shareholder derivative lawsuit was filed against the Company as nominal
defendant and against certain of its current or former officers and certain current directors. The
lawsuit was filed by Paul Pashcetto in the Circuit Court of St. Louis, Missouri. The complaint
alleges, among other things, breach of fiduciary duty, abuse of control, waste of corporate assets
and unjust enrichment between November 5, 2006 and February 22, 2008. The complaint seeks, among
other relief, unspecified damages, costs and expenses, including attorneys’ fees, an order
requiring the Company to implement certain corporate governance reforms, restitution from the
defendants and such other relief as the Court might find just and proper. The Company believes
that it and the other defendants have meritorious defenses to each of the claims in this lawsuit.
On July 18, 2008, the Company filed a motion to dismiss all of the claims in this lawsuit, which,
on December 14, 2009, the Court denied. The Company filed an answer to the complaint on January
27, 2010 and the case subsequently moved into the discovery. On July 28, 2010, the Company filed a
motion for summary judgment. The Court held a hearing on the motion for summary judgment on
November 19, 2010. On December 20, 2010, the parties filed a joint motion requesting that the
Court defer its ruling on the motion for summary judgment pending the finalization of a settlement
agreement. On January 18, 2011, the parties advised the Court in a status conference that they
intended to submit a stipulation of settlement and plaintiff’s motion for preliminary approval by
February 14, 2011. On February 22, 2011, the parties filed with the Court a Stipulation of
Settlement regarding the shareholder derivative lawsuit. Under the terms of the Stipulation of
Settlement, the Company agreed, among other things, to implement and maintain certain corporate
governance additions, modifications and/or formalizations, and its insurer will pay plaintiff’s
attorneys’ fees and expenses of $1.4 million. The Stipulation of Settlement contains no admission
of wrongdoing. The Company and the other defendants have maintained and continue to deny liability
and wrongdoing of any kind with respect to the claims made in the shareholder derivative action.
However, given the potential cost and burden of continued litigation, the Company believes the
settlement is in its best interests and the best interests of our stockholders. On February 22, 2011, the Court
preliminarily approved the settlement and scheduled a settlement hearing on April 8, 2011. If the Court
grants final approval of the Stipulation of Settlement, the Court will dismiss the shareholder
derivative lawsuit with prejudice and the plaintiff will be deemed to have released all claims
against the Company relating to the allegations in the derivative action. The Company can provide
no assurance that the Court will approve the Stipulation of Settlement. If the Court does not
approve the Stipulation of Settlement, it will continue to defend against these claims, which could
have a material adverse effect on our financial condition and business. If these matters were
concluded in a manner adverse to the Company, it could be required to pay substantially more in
damages than the amount provided for in the Stipulation of Settlement. In addition, the costs to
the Company of defending any litigation or other proceeding, even if resolved in its favor, could
be substantial. Such litigation could also substantially divert the attention of its management
and resources in general. The amount to be deposited by the
Company’s primary directors and officers liability insurer into the settlement fund of
$1.4 million is included in other accounts receivable and accrued expenses in the
Company’s Consolidated Balance Sheets.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On December 9, 2009, a purported class action lawsuit was filed against the Company and one of its
subsidiaries by Nick Sotoudeh, a former employee of the Company. The lawsuit was filed in the
California Superior Court, County of Contra Costa. The complaint alleges, among other things,
violations of the California Labor Code, failure to pay overtime, failure to provide meal and rest
periods and termination compensation and violations of California’s Unfair Competition Law. The
complaint seeks, among other relief, collective and class certification of the lawsuit, unspecified
damages, costs and expenses, including attorneys’ fees, and such other relief as the Court might
find just and proper. The Company believes it and the other defendant have meritorious defenses to
each of the claims in this lawsuit and the Company is prepared to vigorously defend the lawsuit.
There can be no assurance, however, that the Company will be successful, and an adverse resolution
of the lawsuit could have a material adverse effect on the Company’s consolidated financial
position and results of operations in the period in which the lawsuit is resolved. The Company is
not presently able to reasonably estimate potential losses, if any, related to the lawsuit and as
such, has not recorded a liability in its Consolidated Balance Sheets.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On December 16, 2010, a purported class action lawsuit was filed against the Company by Denarius
Lewis and Corey Weiner, former employees of one of the Company’s subsidiaries, and Caroll Ruiz, an
employee of one of the Company’s franchisees. The lawsuit was filed in the United States District
Court for Middle District of Florida. The complaint alleges, among other things, violations of the
Fair Labor Standards Act. The complaint seeks, among other relief, collective, and class
certification of the lawsuit, unspecified damages, costs and expenses, including attorneys’ fees
and such other relief as the Court might find just and proper. The Company believes it and the
other defendant have meritorious defenses to each of the claims in this lawsuit and the Company is
prepared to vigorously defend the lawsuit. There can be no assurance, however, that the Company
will be successful, and an adverse resolution of the lawsuit could have a material adverse effect
on the Company’s consolidated financial position and results of operations in the period in which
the lawsuit is resolved. The Company is not presently able to reasonably estimate potential
losses, if any, related to the lawsuit and as such, has not recorded a liability in its
Consolidated Balance Sheets.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In addition, the Company is subject to other routine legal proceedings, claims, and litigation in
the ordinary course of its business. Defending lawsuits requires significant management attention
and financial resources and the outcome of any litigation, including the matters described above,
is inherently uncertain. The Company does not, however, currently expect that the costs to resolve
these routine matters will have a material adverse effect on its consolidated financial position,
results of operations, or cash flows.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Other</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is subject to on-going federal and state income tax audits and sales tax audits and any
unfavorable rulings could materially and adversely affect its consolidated financial condition or
results of operations. The Company believes reserves for these matters are adequately provided for
in its consolidated financial statements.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>14. Income Taxes</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The components of income before income taxes, by tax jurisdiction, were as follows for the periods
indicated (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">180,458</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">139,005</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">110,220</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Canada
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(296</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">919</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">180,162</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">139,924</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">110,217</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The provision for income taxes consisted of the following for the periods indicated (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008 (1)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Federal
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">64,471</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24,428</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,188</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">State
</div></td>
<td> </td>
<td> </td>
<td align="right">8,919</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,390</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,192</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(167</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">304</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">73,223</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,122</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45,380</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Federal
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,306</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">20,006</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,589</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">State
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(354</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,945</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(519</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,660</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">22,951</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,108</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax Provision
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">68,563</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53,073</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41,272</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>
<div style="text-align: justify">The Company developed its first bakery-cafes in Canada in fiscal 2008. Fiscal 2008 current and
deferred income taxes consisted primarily of U.S. taxes. Canadian taxes were nominal, and thus were
not shown separately.
</div></td>
</tr>
</table>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows
for the periods indicated:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Statutory rate provision
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">5.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.0</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">38.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">37.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">37.4</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The tax effects of the significant temporary differences which comprise the deferred tax assets and
liabilities were as follows for the periods indicated (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued expenses
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">59,952</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">42,029</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Stock-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">2,405</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,531</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">287</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total deferred tax assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">62,644</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">44,575</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Property and equipment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(51,437</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(39,433</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Goodwill and other intangibles
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,675</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,270</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total deferred tax liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(68,112</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(54,703</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net deferred tax liability
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,468</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,128</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net deferred current tax asset
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">24,796</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,685</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net deferred non-current tax liability
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(30,264</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(28,813</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following is a roll-forward of the Company’s total gross unrecognized tax benefit liabilities
for the periods indicated (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning Balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,357</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,598</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,299</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax positions related to the current year:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Additions
</div></td>
<td> </td>
<td> </td>
<td align="right">477</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">617</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">281</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax positions related to prior years:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Additions
</div></td>
<td> </td>
<td> </td>
<td align="right">724</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,963</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Reductions
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(700</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(110</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,440</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Settlements
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(373</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(645</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(425</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expiration of statutes of limitations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(589</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(103</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(80</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending Balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,896</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,357</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,598</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As of December 28, 2010 and December 29, 2009, the amount of unrecognized tax benefits that,
if recognized in full, would be recorded as a reduction of income tax expense was $2.9 million and
$3.4 million, net of federal tax benefits, respectively. The Company believes that it is
reasonably possible that a decrease of up to $1.0 million of unrecognized tax benefits principally
related to state tax filing positions and previously deducted expenses may occur within twelve
months of December 28, 2010 as a result of the expiration of statutes of limitations and the
finalization of audits related to prior tax years. In certain cases, the Company’s uncertain tax
positions are related to tax years that remain subject to examination by the relevant tax
authorities. Tax returns in the Company’s major tax filing jurisdictions for years after 2006, as
well as certain returns in 2005 and 2006, are subject to future examination by tax authorities.
Estimated interest and penalties related to the underpayment of income taxes are classified as a
component of income tax expense in the Consolidated Statements of Operations and was $0.3 million
during fiscal 2010, fiscal 2009, and fiscal 2008, respectively. Accrued interest and penalties were
$1.3 million and $1.0 million as of December 28, 2010 and December 29, 2009, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>15. Deposits and Other</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Deposits and other consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deposits
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,032</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,800</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred financing costs
</div></td>
<td> </td>
<td> </td>
<td align="right">561</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">821</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment in municipal revenue bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">1,365</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total deposits and other
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,958</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,621</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>16. Stockholders’ Equity</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Common Stock</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The holders of Class A common stock are entitled to one vote for each share owned. The holders of
Class B common stock are entitled to three votes for each share owned. Each share of Class B
common stock has the same dividend and liquidation rights as each share of Class A common stock.
Each share of Class B common stock is convertible, at the stockholder’s option, into Class A common
stock on a one-for-one basis. At December 28, 2010, the Company had reserved 2,735,881 shares of
its Class A common stock for issuance upon exercise of awards granted under the Company’s 1992
Equity Incentive Plan, 2001 Employee, Director, and Consultant Stock Option Plan, and the 2006
Stock Incentive Plan, and upon conversion of Class B common stock.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Registration Rights</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">At December 28, 2010, 94.3 percent of the Class B common stock is owned by the Company’s Executive
Chairman of the Board (“Chairman”). Certain holders of Class B common stock, including the
Chairman, pursuant to stock subscription agreements, can require the Company under certain
circumstances to register their shares under the Securities Exchange Act of 1933, or have included
in certain registrations all or part of such shares at the Company’s expense.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Preferred Stock</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is authorized to issue 2,000,000 shares of Class B preferred stock with a par value of
$.0001. The voting, redemption, dividend, liquidation rights, and other terms and conditions are
determined by the Board of Directors upon approval of issuance. There were no shares issued or
outstanding in fiscal years 2010 and 2009.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Treasury Stock</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to the terms of the Panera Bread 1992 Stock Incentive Plan and the Panera Bread 2006 Stock
Incentive Plan and the applicable award agreements, the Company repurchased 44,002 shares of Class
A common stock at a weighted-average cost of $77.99 per share during fiscal 2010, 32,135 shares of
Class A common stock at a weighted-average cost of $53.66 per share during fiscal 2009, and 20,378
shares of Class A common stock at a weighted-average cost of $49.87 per share during fiscal 2008,
as were surrendered by participants as payment of applicable tax withholdings on the vesting of
restricted stock. Shares so surrendered by the participants are repurchased by the Company at fair
market value pursuant to the terms of those plans and the applicable award agreements and not
pursuant to publicly announced share repurchase authorizations. The shares surrendered to the
Company by participants and repurchased by the Company are currently held by the Company as
treasury stock.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Share Repurchase Authorization</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During fiscal 2010, fiscal 2009, and fiscal 2008, the Company purchased shares of Class A common
stock under authorized share repurchase authorizations. Repurchased shares may be retired
immediately and resume the status of authorized but unissued shares or may be held by the Company
as treasury stock. See Note 12 for further information with respect to the Company’s share
repurchase authorizations.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>17. Stock-Based Compensation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for its stock-based compensation arrangements in accordance with the
accounting standard for share-based payments in the Company’s consolidated financial statements and
accompanying notes, which requires the Company to measure and record compensation expense in its
consolidated financial statements for all stock-based compensation awards using a fair value
method.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As of December 28, 2010, the Company had one active stock-based compensation plan, the 2006 Stock
Incentive Plan (“2006 Plan”), and had options and restricted stock outstanding (but can make no
future grants) under two other stock-based compensation plans, the 1992 Equity Incentive Plan
(“1992 Plan”) and the 2001 Employee, Director, and Consultant Stock Option Plan (“2001 Plan”).
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>2006 Stock Incentive Plan</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In the first quarter of fiscal 2006, the Company’s Board of Directors adopted the 2006 Plan, which
was approved by the Company’s stockholders in May 2006. The 2006 Plan provided for the grant of up
to 1,500,000 shares of the Company’s Class A common stock (subject to adjustment in the event of
stock splits or other similar events) as incentive stock options, non-statutory stock options and
stock settled appreciation rights (collectively “option awards”), restricted stock, restricted
stock units, and other stock-based awards. Effective May 13, 2010, the Plan was amended to
increase the number of the Company’s Class A common stock shares available to grant to 2,300,000.
As a result of stockholder approval of the 2006 Plan, effective as of May 25, 2006, the Company
will grant no further stock options, restricted stock or other awards under the 2001 Plan or the
1992 Plan. The Company’s Board of Directors administers the 2006 Plan and has sole discretion to
grant awards under the 2006 Plan. The Company’s Board of Directors has delegated the authority to
grant awards under the 2006 Plan, other than to the Company’s Chairman and Chief Executive Officer,
to the Company’s Compensation and Stock Option Committee (“the Committee”).
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Long-Term Incentive Program</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In the third quarter of 2005, the Company adopted the 2005 Long Term Incentive Plan (“2005 LTIP”)
as a sub-plan under the 2001 Plan and the 1992 Plan. In May 2006, the Company amended the 2005
LTIP to provide that the 2005 LTIP is a sub-plan under the 2006 Plan. Under the amended 2005 LTIP,
certain directors, officers, employees, and consultants, subject to approval by the Committee, may
be selected as participants eligible to receive a percentage of their annual salary in future
years, subject to the terms of the 2006 Plan. This percentage is based on the participant’s level
in the Company. In addition, the payment of this incentive can be made in several forms based on
the participant’s level including performance awards (payable in cash or common stock or some
combination of cash and common stock as determined by the Committee), restricted stock, choice
awards of restricted stock or options, or deferred annual bonus match awards. On July 23, 2009,
the Committee further amended the 2005 LTIP to permit the Company to grant stock settled
appreciation rights (“SSARs”) under the choice awards and to clarify that the Committee may
consider the Company’s performance relative to the performance of its peers in determining the
payout of performance awards, as further discussed below. For fiscal 2010, fiscal 2009 and fiscal
2008, compensation expense related to performance awards, restricted stock, and deferred annual
bonus match was $19.3 million, $12.1 million, and $6.9 million, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Performance awards under the 2005 LTIP are earned by participants based on achievement of
performance goals established by the Committee. The performance period relating to the performance
awards is a three-fiscal-year period. The performance goals, including each performance metric,
weighting of each metric, and award levels for each metric, for such awards are communicated to
each participant and are based on various predetermined earnings and operating metrics. The
performance awards are earned based on achievement of predetermined earnings and operating
performance metrics at the end of the three-fiscal-year performance period, assuming continued
employment, and after the Committee’s consideration of the Company’s performance relative to the
performance of its peers. The performance awards range from 0 percent to 150 percent of the
participants’ salary based on their level in the Company and the level of achievement of each
performance metric. However, the actual award payment will be adjusted, based on the Company’s
performance over a three-consecutive fiscal year measurement period, and any other factors as
determined by the Committee. The actual award payment for the performance award component could
double the individual’s targeted award payment, if the Company achieves maximum performance in all
of its performance metrics, subject to any adjustments as determined by the Committee. The
performance awards are payable 50 percent in cash and 50 percent in common stock or some
combination of cash and common stock as determined by the Committee. For fiscal 2010, fiscal 2009,
and fiscal 2008, compensation expense related to the performance awards was $10.2 million, $5.3
million, and $2.1 million, respectively.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Restricted stock of the Company under the 2005 LTIP is granted at no cost to participants. While
participants are generally entitled to voting rights with respect to their respective shares of
restricted stock, participants are generally not entitled to receive accrued cash dividends, if
any, on restricted stock unless and until such shares have vested. The Company does not currently
pay a dividend, and has no current plans to do so. For awards of restricted stock to date under
the 2005 LTIP, restrictions limit the sale or transfer of these shares during a five year period
whereby the restrictions lapse on 25 percent of these shares after two years and thereafter 25
percent each year for the next three years, subject to continued employment with the Company. In
the event a participant is no longer employed by the Company, any unvested shares of restricted
stock held by that participant will be forfeited. Upon issuance of restricted stock under the 2005
LTIP, unearned compensation is recorded at fair value on the date of grant to stockholders’ equity
and subsequently amortized to expense over the five year restriction period. The fair value of
restricted stock is based on the market value of the Company’s stock on the grant date. As of
December 28, 2010, there was $26.3 million of total unrecognized compensation cost related to
restricted stock included in additional paid-in capital in the Consolidated Balance Sheets, and is
expected to be recognized over a weighted-average period of approximately 3.7 years. For fiscal
2010, fiscal 2009, and fiscal 2008, restricted stock expense was $7.1 million, $5.4 million and
$3.8 million, respectively. A summary of the status of the Company’s restricted stock activity is
set forth below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Restricted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Stock</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Grant-Date</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at December 30, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">505</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">48.06</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">202</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.09</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(102</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">47.92</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">48.96</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at December 29, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">569</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50.52</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">160</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76.22</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">48.84</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(27</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">53.26</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at December 28, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">566</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">58.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Under the deferred annual bonus match award portion of the 2005 LTIP, eligible participants receive
an additional 50 percent of their annual bonus, which is paid three years after the date of the
original bonus payment provided the participant is still employed by the Company. For fiscal 2010,
fiscal 2009, and fiscal 2008, compensation expense related to the deferred annual bonus match award
was $2.0 million, $1.4 million, and $1.0 million, respectively, and was included in general and
administrative expenses in the Consolidated Statements of Operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Stock options under the 2005 LTIP are granted with an exercise price equal to the quoted market
value of the Company’s common stock on the date of grant. In addition, stock options generally
vest ratably over a four-year period beginning two years from the date of grant and have a six-year
term. As of December 28, 2010, the total unrecognized compensation cost related to non-vested
options was $1.2 million, which is net of a $0.3 million forfeiture estimate, and is expected to be
recognized over a weighted-average period of approximately 1.9 years. The Company uses historical
data to estimate pre-vesting forfeiture rates. Stock-based compensation expense related to stock
options was as follows for the periods indicated (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Charged to general and administrative expenses (1)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,510</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,154</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,212</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(575</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(821</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,205</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total stock-based compensation expense, net of tax
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">935</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,333</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,007</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect on basic earnings per share
</div></td>
<td> </td>
<td> </td>
<td align="right">0.03</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.04</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect on diluted earnings per share
</div></td>
<td> </td>
<td> </td>
<td align="right">0.03</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.04</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>
<div style="text-align: justify">Net of less than $0.1 million, $0.1 million, and $0.2 million of capitalized compensation
cost related to the acquisition, development, design, and construction of new bakery-cafe
locations and fresh dough facilities for fiscal 2010, fiscal 2009, and fiscal 2008,
respectively.
</div></td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table summarizes the Company’s stock option activity under its stock-based
compensation plans during fiscal 2010, fiscal 2009, and fiscal 2008:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Aggregate</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Contractual Term</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Intrinsic</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value (1)</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Exercise Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Years)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 25, 2007
</div></td>
<td> </td>
<td> </td>
<td align="right">2,086</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39.05</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">127</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45.06</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(532</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33.03</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,293</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(229</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">45.68</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 30, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">1,452</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40.73</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52.23</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(627</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">36.39</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,115</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">46.91</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 29, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">814</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">44.04</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67.94</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(598</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">42.68</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,867</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">49.63</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 28, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">216</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">48.17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,662</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercisable at December 28, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">83</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51.66</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.3</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,206</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>
<div style="text-align: justify">Intrinsic value for activities other than exercises is defined as the difference between the
grant price and the market value on the last day of fiscal 2010 of $102.11 for those stock
options where the market value is greater than the exercise price. For exercises, intrinsic
value is defined as the difference between the grant price and the market value on the date of
exercise.
</div></td>
</tr>
</table>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Cash received from the exercise of stock options in fiscal 2010, fiscal 2009, and fiscal 2008 was
$25.6 million, $22.8 million, and $17.6 million respectively. Windfall tax benefits realized from
exercised stock options in fiscal 2010, fiscal 2009, and fiscal 2008 were $3.6 million, $5.1
million, and $3.4 million, respectively, and were included as cash inflows from financing
activities in the Consolidated Statements of Cash Flows.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table summarizes information about stock options outstanding at December 28, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="30%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Stock Options Outstanding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Stock Options Exercisable</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Contractual Term</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Outstanding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercisable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Range of Exercise Price</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Years)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Exercise Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Exercise Price</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$36.57 – $40.35
</div></td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37.66</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36.70</td>
<td> </td>
</tr>
<tr valign="bottom">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$40.36 – $44.41
</div></td>
<td> </td>
<td> </td>
<td align="right">88</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43.14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43.18</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$44.42 – $48.02
</div></td>
<td> </td>
<td> </td>
<td align="right">33</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47.95</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47.95</td>
<td> </td>
</tr>
<tr valign="bottom">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$48.03 – $52.24
</div></td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.93</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51.11</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$52.25 – $60.07
</div></td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56.23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.70</td>
<td> </td>
</tr>
<tr valign="bottom">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$60.08 – $72.58
</div></td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69.41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69.44</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td align="center">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">216</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">48.17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">83</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51.66</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td align="center">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">A SSAR is an award that allows the recipient to receive common stock equal to the appreciation in
the fair market value of the Company’s common stock between the date the award was granted and the
conversion date for the number of shares vested. SSARs
under the 2005 LTIP are granted with an exercise price equal to the quoted market value of the
Company’s common stock on the date of grant. In addition, SSARs vest ratably over a four-year
period beginning two years from the date of grant and have a six-year term. As of December 28,
2010, the total unrecognized compensation cost related to non-vested SSARs was $0.4 million, which
is net of a $0.2 million forfeiture estimate, and is expected to be recognized over a
weighted-average period of approximately 4.0 years. The Company uses historical data to estimate
pre-vesting forfeiture rates. For fiscal 2010 and 2009, stock-based compensation expense related
to SSARs was less than $0.1 million, and was charged to general and administrative expenses in the
Consolidated Statements of Operations.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table summarizes the Company’s SSAR activity under its stock-based compensation plan
during fiscal 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Aggregate</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Contractual Term</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Intrinsic</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Value (2)</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Conversion Price (1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Years)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 30, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.20</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Converted
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">55.20</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 29, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55.20</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">293</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75.80</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Converted
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at December 28, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">30</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">60.90</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,244</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Convertible at December 28, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>
<div style="text-align: justify">Conversion price is defined as the price from which SSARs are measured and is equal to the
market value on the date of issuance.
</div></td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>
<div style="text-align: justify">Intrinsic value for activities other than conversions is defined as the difference between
the grant price and the market value on the last day of fiscal 2010 of $102.11 for those SSARs
where the market value is greater than the conversion price. For conversions, intrinsic value
is defined as the difference between the grant price and the market value on the date of
conversion.
</div></td>
</tr>
</table>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">All SSARs outstanding at December 28, 2010 have a conversion price ranging from $55.20 to $75.80
and are expected to be recognized over a weighted-average period of approximately 4.9 years
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The fair value for both stock options and SSARs (collectively “option awards”) was estimated on the
date of the grant using the Black-Scholes option pricing model with the following weighted-average
assumptions:
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify"><i>Expected term </i>— The expected term of the option awards represents the period of time
between the grant date of the option awards and the date the option awards are either
exercised or canceled, including an estimate for those option awards still outstanding, and is
derived from historical terms and other factors.
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify"><i>Expected volatility </i>— The expected volatility is based on an average of the historical
volatility of the Company’s stock price, for a period approximating the expected term, and the
implied volatility of externally traded options of the Company’s stock that were entered into
during the period.
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify"><i>Risk-free interest rate </i>— The risk-free interest rate is based on the U.S. Treasury yield
curve in effect at the time of grant and with a maturity that approximates the option awards
expected term.
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify"><i>Dividend yield </i>— The dividend yield is based on the Company’s anticipated dividend payout
over the expected term of the option awards.
</div></td>
</tr>
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The weighted-average fair value of option awards granted and assumptions used for the Black-Scholes
option pricing model were as follows for the periods indicated:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value per option awards
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">27.97</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21.70</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15.54</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Assumptions:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Expected term (years)
</div></td>
<td> </td>
<td> </td>
<td align="right">5.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Expected volatility
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">41.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">41.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">36.5</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">2.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">2.5</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Dividend yield
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>1992 Equity Incentive Plan</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company adopted the 1992 Plan in May 1992. A total of 8,600,000 shares of Class A common stock
were authorized for issuance under the 1992 Plan as awards, which could have been in the form of
stock options (both qualified and non-qualified), stock appreciation rights, performance shares,
restricted stock, or stock units, to employees and consultants. As a result of stockholder
approval of the 2006 Plan, effective as of May 25, 2006, the Company will grant no further stock
options, restricted stock, or other awards under the 1992 Plan.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>2001 Employee, Director, and Consultant Stock Option Plan</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company adopted the 2001 Plan in June 2001. A total of 3,000,000 shares of Class A common
stock were authorized for issuance under the 2001 Plan as awards, which could have been in the form
of stock options to employees, directors, and consultants. As a result of stockholder approval of
the 2006 Plan, effective as of May 25, 2006, the Company will grant no further stock options under
the 2001 Plan.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>1992 Employee Stock Purchase Plan</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company maintains a 1992 Employee Stock Purchase Plan (“ESPP”) which was authorized to issue
825,000 shares of Class A common stock. The ESPP gives eligible employees the option to purchase
Class A common stock (total purchases in a year may not exceed 10 percent of an employee’s current
year compensation) at 85 percent of the fair market value of the Class A common stock at the end of
each calendar quarter. There were approximately 28,000, 36,000, and 44,000 shares purchased with a
weighted-average fair value of purchase rights of $11.41, $7.95, and $6.41 during fiscal 2010,
fiscal 2009, and fiscal 2008, respectively. For fiscal 2010, fiscal 2009, and fiscal 2008, the
Company recognized expense of approximately $0.3 million in each of the respective years related to
stock purchase plan discounts. Effective May 13, 2010, the Plan was amended to increase the number
of the Company’s Class A common stock shares authorized for issuance 925,000. Cumulatively, there
were approximately 820,000 shares issued under this plan as of December 28, 2010, 790,000 shares
issued under this plan as of December 29, 2009, and 754,000 shares issued under this plan as of
December 30, 2008.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 18 - us-gaap:ScheduleOfDefinedBenefitPlansDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>18. Defined Contribution Benefit Plan</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Panera Bread Company 401(k) Savings Plan (the “Plan”) was formed under Section 401(k) of the
Internal Revenue Code (“the Code”). The Plan covers substantially all employees who meet certain
service requirements. Participating employees may elect to defer a percentage of his or her salary
on a pre-tax basis, subject to the limitations imposed by the Plan and the Code. The Plan provides
for a matching contribution by the Company equal to 50 percent of the first 3 percent of the
participant’s eligible pay. All employee contributions vest immediately. Company matching
contributions vest beginning in the second year of employment at 25 percent per year, and are fully
vested after 5 years. The Company contributed $1.4 million, $1.3 million, and $1.1 million to the
Plan in fiscal 2010, fiscal 2009, and fiscal 2008, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 19 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>19. Business Segment Information</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company operates three business segments. The Company Bakery-Cafe Operations segment is
comprised of the operating activities of the bakery-cafes owned directly and indirectly by the
Company. The Company-owned bakery-cafes conduct business under the Panera Bread<sup style="font-size: 85%; vertical-align: text-top">®</sup>, Saint Louis
Bread Co.<sup style="font-size: 85%; vertical-align: text-top">®</sup> or Paradise Bakery & Café<sup style="font-size: 85%; vertical-align: text-top">®</sup> names. These bakery-cafes offer some or all of the
following: fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads,
custom roasted coffees, and other complementary products through on-premise sales, as well as
catering.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Franchise Operations segment is comprised of the operating activities of the franchise business
unit which licenses qualified operators to conduct business under the Panera Bread or Paradise
Bakery & Café names and also monitors the operations of these
bakery-cafes. Under the terms of most of the agreements, the licensed operators pay royalties and
fees to the Company in return for the use of the Panera Bread or Paradise Bakery & Café names.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, cream
cheese, and indirectly supplies proprietary sweet goods items through a contract manufacturing
arrangement, to Company-owned and franchise-operated bakery-cafes. The fresh dough is sold to a
number of both Company-owned and franchise-operated bakery-cafes at a delivered cost generally not
to exceed 27 percent of the retail value of the end product. The sales and related costs to the
franchise-operated bakery-cafes are separately stated line items in the Consolidated Statements of
Operations. The operating profit related to the sales to Company-owned bakery-cafes is classified
as a reduction of the costs in the cost of food and paper products in the Consolidated Statements of Operations.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The accounting policies applicable to each segment are consistent with those described in Note 2,
“Summary of Significant Accounting Policies.” Segment information related to the Company’s three
business segments follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Company bakery-cafe operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,321,162</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,153,255</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,106,295</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Franchise operations
</div></td>
<td> </td>
<td> </td>
<td align="right">86,195</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78,367</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74,800</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fresh dough and other product operations
</div></td>
<td> </td>
<td> </td>
<td align="right">252,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">216,116</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">213,620</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Intercompany sales eliminations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(116,913</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(94,244</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(95,862</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,542,489</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,353,494</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,298,853</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Segment profit:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Company bakery-cafe operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">249,177</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">193,669</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">183,713</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Franchise operations
</div></td>
<td> </td>
<td> </td>
<td align="right">80,397</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,381</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65,005</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fresh dough and other product operations
</div></td>
<td> </td>
<td> </td>
<td align="right">24,146</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,643</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,185</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total segment profit
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">353,720</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">287,693</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">257,903</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">68,673</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67,162</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67,225</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unallocated general and administrative expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">95,696</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,183</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74,598</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Pre-opening expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">4,282</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,451</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,374</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right">675</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">700</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,606</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other expense, net
</div></td>
<td> </td>
<td> </td>
<td align="right">4,232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">883</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">180,162</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">139,924</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">110,217</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Company bakery-cafe operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">57,031</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55,726</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">54,814</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fresh dough and other product operations
</div></td>
<td> </td>
<td> </td>
<td align="right">7,495</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,620</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,072</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate administration
</div></td>
<td> </td>
<td> </td>
<td align="right">4,147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,816</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,339</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total depreciation and amortization
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">68,673</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">67,162</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">67,225</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital expenditures:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Company bakery-cafe operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">66,961</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">46,408</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">56,477</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Fresh dough and other product operations
</div></td>
<td> </td>
<td> </td>
<td align="right">6,452</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,681</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,872</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate administration
</div></td>
<td> </td>
<td> </td>
<td align="right">8,813</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,595</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,814</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total capital expenditures
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">82,226</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">54,684</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">63,163</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Segment assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Company bakery-cafe operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">581,193</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">498,806</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">503,928</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Franchise operations
</div></td>
<td> </td>
<td> </td>
<td align="right">6,679</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,850</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,951</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fresh dough and other product operations
</div></td>
<td> </td>
<td> </td>
<td align="right">48,393</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48,616</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,699</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total segment assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">636,265</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">551,272</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">560,578</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unallocated trade and other accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">9,409</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,267</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,435</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unallocated property and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">19,798</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,437</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,673</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unallocated deposits and other
</div></td>
<td> </td>
<td> </td>
<td align="right">4,549</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,104</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,109</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other unallocated assets
</div></td>
<td> </td>
<td> </td>
<td align="right">254,560</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">265,085</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">92,122</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">924,581</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">837,165</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">673,917</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">“Unallocated trade and other accounts receivable” relates primarily to rebates and interest
receivable, “unallocated property and equipment” relates primarily to corporate fixed assets,
“unallocated deposits and other” relates primarily to insurance deposits, and “other unallocated
assets” relates primarily to cash and cash equivalents and deferred taxes.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 20 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>20. Earnings Per Share</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth the computation of basic and diluted earnings per share (in
thousands, except for per share data):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amounts used for basic and diluted per share calculations:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to Panera Bread Company
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">111,866</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">86,050</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">67,436</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average number of shares outstanding — basic
</div></td>
<td> </td>
<td> </td>
<td align="right">30,614</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,667</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,059</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of dilutive stock-based employee compensation awards
</div></td>
<td> </td>
<td> </td>
<td align="right">308</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">312</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">363</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average number of shares outstanding — diluted
</div></td>
<td> </td>
<td> </td>
<td align="right">30,922</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,979</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,422</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings per common share attributable to Panera Bread Company:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3.65</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.81</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3.62</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.78</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.22</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">For the fiscal years ended December 28, 2010, December 29, 2009, and December 30, 2008,
weighted-average outstanding stock options, restricted stock and stock-settled appreciation rights
of zero, 0.2 million, and 0.6 million shares, respectively, were excluded in calculating diluted
earnings per share as the exercise price exceeded fair market value and inclusion would have been
anti-dilutive.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 21 - us-gaap:CashFlowSupplementalDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>21. Supplemental Cash Flow Information</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>For the fiscal year ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 30, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash paid during the year for (in thousands):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">379</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,748</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">68,263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,947</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,328</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-cash investing and financing activities (in thousands):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued property and equipment purchases
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,057</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,108</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,448</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued purchase price of noncontrolling interest
</div></td>
<td> </td>
<td> </td>
<td align="right">764</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,264</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued purchase price of New Jersey acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">2,755</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Canada note receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">3,333</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Investment in municipal industrial revenue bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">1,517</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 22 - us-gaap:QuarterlyFinancialInformationTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>22. Selected Quarterly Financial Data
(unaudited)</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table presents selected quarterly financial data for the periods indicated (in
thousands, except per share data):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Fiscal 2010 - quarters ended (1)</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>March 30</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 29</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>September 28</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 28</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">364,210</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">378,124</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">371,994</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">428,161</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating profit
</div></td>
<td> </td>
<td> </td>
<td align="right">42,161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,103</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,996</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,809</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td align="right">25,845</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,655</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,715</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,384</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to Panera Bread Company
</div></td>
<td> </td>
<td> </td>
<td align="right">25,845</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,704</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,797</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,520</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings per common share attributable to Panera Bread Company:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.83</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.86</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.75</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.22</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.82</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.85</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.75</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.21</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Fiscal 2009 - quarters ended (1)</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>March 31</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>September 29</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 29</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">320,709</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">330,794</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">335,018</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">366,972</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating profit
</div></td>
<td> </td>
<td> </td>
<td align="right">28,786</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,882</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,922</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47,307</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td align="right">18,027</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,235</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,894</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,696</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to Panera Bread Company
</div></td>
<td> </td>
<td> </td>
<td align="right">17,432</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,029</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,894</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,696</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings per common share attributable to Panera Bread Company:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.57</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.65</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.61</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.96</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.57</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.65</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.61</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.95</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>
<div style="text-align: justify">Fiscal quarters may not sum to the fiscal year reported amounts due to rounding.
</div></td>
</tr>
</table>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The second quarter of fiscal 2010 results included a favorable impact of $0.01 per diluted share
from the repurchase of 897,556 shares under its $600.0 million share repurchase authorization which
was offset by a $2.5 million charge, or $0.05 per diluted share related to an on-going unclaimed
property audit.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The third quarter of fiscal 2010 results included a favorable impact of $0.01 per diluted share
from the repurchase of 1,007,984 shares under the Company’s $600.0 million share repurchase
authorization.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The second quarter of fiscal 2009 results included a $1.0 million charge, or $0.02 per diluted
share, to increase reserves for certain state sales tax audit exposures and a $0.8 million charge,
or $0.02 per diluted share, for the write-off of smallwares related to the rollout of new china.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The third quarter of fiscal 2009 results included $2.1 million of net charges, or $0.04 per diluted
share, primarily to increase reserves for certain state sales tax audit exposures, which were
partially offset by a gain recorded on both, the redemptions the Company received during the
quarter on its investment in the Columbia Strategic Cash Portfolio, and the change in the recorded
fair value of the units held as of September 29, 2009.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The fourth quarter of fiscal 2009 results included a $0.4 million charge, or $0.01 per diluted
share, to write-off equipment related to the rollout of panini grills, a $1.4 million charge, or
$0.03 per diluted share, related to the closure of bakery-cafes, and a $0.6 million charge, or
$0.01 per diluted share, related to the impairment of one bakery-cafe.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 23 - us-gaap:ScheduleOfValuationAndQualifyingAccountsDisclosureTextBlock-->
<!-- xbrl,nx -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<div style="display: none"></div>
<div align="left">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; text-indent: 4%">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; margin-left: 4%">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; margin-left: 4%">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; margin-left: 4%">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; margin-left: 4%">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; text-indent: 4%">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt">
</div>
<div align="left">
</div>
<div align="justify" style="font-size: 10pt; margin-top: 0pt; text-indent: 4%">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b>
VALUATION AND QUALIFYING ACCOUNTS<br />
(in thousands)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Balance - beginning</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Additions charged</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Deductions/</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Balance - end</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Description</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>of period</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>to expense</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>other additions</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>of period</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fiscal year ended December 30, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">68</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">153</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(32</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">189</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Fiscal year ended December 29, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(92</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">125</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fiscal year ended December 28, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">125</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">161</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(44</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">242</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Self-insurance reserves:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fiscal year ended December 30, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,936</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32,981</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(29,768</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">12,149</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Fiscal year ended December 29, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,149</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,077</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(33,292</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">15,934</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Fiscal year ended December 28, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,934</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">35,622</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(31,344</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">20,212</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)(3)</td>
<td> </td>
<td>
<div style="text-align: justify">Exhibits: See Exhibit Index incorporated into this item by reference.
</div></td>
</tr>
</table>
</div>
false
--12-28
FY
2010
2010-12-28
10-K
0000724606
30074057
1391337
Yes
Large Accelerated Filer
1673643693
0
PANERA BREAD CO
No
Yes
-742000
-742000
630000
630000
4621000
6958000
67225000
67162000
68673000
108573000
100229000
110986000
117758000
121872000
135132000
6211000
3591000
4603000
-1042000
-100000
2337000
6013000
4056000
12281000
20000
-1433000
32000
-60000
951000
-1949000
90390000
95996000
100970000
147033000
155396000
177059000
48893000
47877000
1016000
3453000
1729000
1724000
153492000
78430000
75062000
-75000000
922582000
959586000
1071985000
6417000
7346000
17317000
20378000
135842000
204170000
224000
275000
168288000
130005000
228000
2799000
1114000
7954000
7954000
8661000
8661000
9558000
9558000
3376000
3376000
5095000
5095000
3603000
3603000
837165000
924581000
322084000
330685000
68242000
74710000
246400000
229299000
6468000
171690000
-17101000
0.0001
0.0001
10000000
75000000
75000000
10000000
30364915
1392107
1391607
30125936
1392107
30196808
29006844
1391607
3000
0
3000
0
68551000
68551000
87469000
87469000
111663000
111663000
352462000
370595000
419140000
332697000
337599000
374816000
1186147000
1212597000
1357420000
-4107000
22950000
-4660000
43371000
47974000
18685000
24796000
28813000
30264000
2.24
2.81
3.65
2.22
2.78
3.62
3376000
5095000
3603000
3376000
5095000
3603000
19195000
48402000
74800000
78367000
86195000
84393000
83169000
101494000
87481000
94442000
110217000
139924000
180162000
41272000
53073000
68563000
-11650000
3554000
13180000
-2290000
2381000
929000
5450000
28901000
61891000
565000
336000
1540000
8966000
2224000
7694000
1606000
700000
675000
12295000
14345000
240129000
328973000
837165000
924581000
142259000
211516000
-23124000
-18799000
-4325000
-743000
-367000
-376000
-102151000
6005000
-122536000
-48705000
-49219000
-132199000
157324000
214904000
237634000
67436000
86050000
111866000
1509000
801000
-267000
112706000
140897000
185069000
11176000
17962000
111297000
149802000
-394000
-394000
-394000
618000
618000
618000
64000
64000
13000
51000
-394000
-394000
618000
618000
64000
64000
25686000
39219000
-883000
-273000
-4232000
48893000
3453000
153492000
1153000
2704000
52177000
63163000
54684000
82226000
20081000
3374000
2451000
4282000
16211000
23905000
2204000
1898000
1626000
1802000
17162000
5465000
17621000
22818000
25551000
68945000
67436000
1509000
68945000
86851000
86050000
86851000
801000
111599000
111866000
-267000
111599000
403784000
444094000
432449000
544315000
1106295000
1153255000
1321162000
1298853000
1353494000
1542489000
7954000
8661000
9558000
1398000
116000
30098000
29422000
1398000
136000
1392000
168000
30197000
29007000
1392000
1119000
448179000
0
2015000
0
0
168386000
-1188000
3000
278963000
498686000
-2204000
346399000
-394000
0
0
3000
3524000
151358000
597036000
168288000
0
0
0
3000
432449000
-3928000
224000
595608000
0
0
275000
-78990000
3000
130005000
0
544315000
-6000
6000
52000
36000
28000
173000
165000
132000
532000
628000
599000
1898000
1898000
1626000
1626000
1802000
1802000
17621000
17621000
22818000
22818000
25551000
25551000
-1910000
1339000
168107
1119092
3928000
78990000
30422000
30979000
30922000
30059000
30667000
30614000