Springfield-based franchisee expands Panera portfolio

Sam Hamra said the new agreement is a result of underestimating the Chicago market.

"There was an opportunity for more growth," he said. "There was more development (possible) in Chicago than we had determined when we first signed the first agreement. It's very common that this happens. When developers develop all the stores in their original development agreement, they often ask for an extension, and they usually get it."

The company expects to have the new 10 stores open within six years.

The Hamras also operate 12 Panera Bread cafes in the Boston area under Boston Bread LLC and have an agreement in place for five more locations there. Hamra said there is no current expansion agreement in place for Boston, but the company would probably explore the possibility once the current agreement is fufillled.

Hamra Enterprises has opened 12 Panera Bread cafes in Chicago and five in Boston since 2002.

Publicly traded and St. Louis-based Panera Bread Co. also announced extended franchise agreements between two other franchisees: Howley Bread Group Ltd., which operates 12 locations in southern New England, and the Candall Group Inc., which would expand its coverage area from Pittsburgh, Pa., into central West Virginia.

In other Panera news, the company reaffirmed its 2004 earnings target of $38.05 million to $38.75 million in net income and $1.24 to $1.26 in earnings per share. It also corrected its implied fourth quarter earnings per diluted share target by 2 cents to a projected 44 cents to 46 cents per share. At press time, Panera Bread (NASDAQ: PNRA) was trading at $35.79 a share.[[In-content Ad]]