Tribune Chronicle

WARREN — The owner of Covelli Enterprises, the largest franchisee of Panera Bread, said the recent acquisition of the cafe-bakery chain by European-based JAB Holding Co. will enhance the brand in the longterm.

“By becoming a privately held (company), Panera will not have the expectations that are put on a publicly traded company by Wall Street,” said Sam Covelli, owner / operator of Covelli Enterprises, in an email. “Becoming a private company will allow Panera to be exclusively focused on what is best for the customer, not the shareholders. It will also allow for a focus on growing the business for the long-term.”

The $7.5 billion deal between St. Louis-based Panera and JAB, a Luxembourg investment fund that was announced April 5, 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 with JAB will allow the company to focus on growth rather than placating shareholders, said Panera founder and CEO Ron Shaich. If and when the deal closes, Panera will be a privately-held company not required to file quarterly financial reports for investors.

“I know that JAB shares many of the same values that have made our company successful, such as integrity and a deep respect for their employees, which are the most important asset in any business,” Covelli said. “I also know that JAB is highly supportive of Panera’s vision for the future and the importance of franchise groups like Covelli Enterprises in executing that vision and continuing to grow the brand.”

The Warren-based Covelli Enterprises has more than 300 Panera stores.

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 an opening in Toronto.

“Our business is as healthy as it has ever been,” Covelli said. “We continue to buy markets when there is opportunity and to open as many new stores as we can in the markets we currently own. In the past 12 months we have acquired or opened over 50 stores.”

JAB will pay $315 per Panera Bread Co. share. The, which includes approximately $340 million of debt, is expected to close in the third quarter.

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