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WARREN -- It was not clear on Wednesday whether Covelli Enterprises, the largest franchisee of Panera Bread, could be impacted by Europe's JAB Holding Co.'s acquisition of the cafe-bakery chain.
Representatives for the Warren-based company, which has more than 300 Panera stores, said Wednesday they could not comment.
However, Panera founder and CEO Ron Shaich, said customers shouldn't see any changes as a result of the chain's sale. Shaich said he will stay on as Panera's leader.
The $7.5 billion deal between St. Louis-based Panera and JAB, a Luxembourg investment fund, is said to be the second largest restaurant deal ever made in North America. JAB has controlling interests in Peet's Coffee & Tea, Caribou Coffee Co., Stumptown Coffee and Krispy Kreme Doughnuts.
The deal for Panera, however, underscores its sway over what people eat when away from home in the morning.
For days, there had been speculation about a takeover at Panera, with Starbucks Corp. being suggested as the potential buyer. Starbucks appeared to shoot down those rumors this week by talking about how excited it was about the launch of a new food menu in Chicago later this month.
On Wednesday, Panera revealed the buyer was JAB, which has quietly become a rival of the giant Seattle coffee brewer.
Shaich said a deal with JAB will allow the company to focus on growth rather than placating shareholders. If and when the deal closes, Panera will be a privately-held company not required to file quarterly financial reports for investors.
Last month, Panera recognized Covelli Enterprises as its Franchisee of the Year. Covelli Enterprises began franchising Panera after deciding to sell its interest in McDonald's in 1997. In May 2012, Covelli was the first Panera Bread franchisee to take the concept international, with a record-breaking opening in Toronto.
Panera shares are up 50 percent this year and on Wednesday, the company said that sales rose 5.3 percent at established company-owned locations in the first quarter, outperforming the broader restaurant industry.
"Many of these deals happen when people feel weak," said Shaich. "We're doing this from a position of strength."
Shaich opened a Boston cookie store in the early 1980s and expanded to more than 2,000 bakery-cafes with annual revenue of $5 billion in sales.
JAB will pay $315 per Panera Bread Co. share. That's a 14.5 percent premium to the company's Tuesday closing price of $274.
The only North American restaurant deal bigger than the sale of Panera, according to FactSet, was the buyout of Tim Hortons in 2014 by the parent company of Burger King, run by 3G Capital.
The Panera deal, which includes approximately $340 million of debt, is expected to close in the third quarter. It still needs the approval of Panera shareholders.
Shares of Panera jumped more than 12 percent before the opening bell Wednesday.
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