Shareholder Class Action Filed Against Panera Bread Co. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP

The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Missouri, St. Louis Division, on behalf of all purchasers of securities of Panera Bread Co. (Nasdaq: PNRA - News; "Panera" or the "Company") between November 1, 2005 and July 26, 2006, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.

The Complaint charges Panera and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Panera owns and franchises bakery-cafes under the Panera Bread and Saint Louis Bread Co. names.

The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being, business relationships, and prospects. Specifically, defendants failed to disclose or indicate the following: (1) that the Company was experiencing fierce competition from similar dining establishments, such that the Company would not be able to maintain growth and earnings trends and projections; (2) that the Company's strategy of rapidly expanding locations was causing a decline in sales per restaurant and a lower return on capital because business was being drawn away from existing stores; (3) that the Company's business was trending negatively because of both slow growth and rising expenses; and (4) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On July 17, 2006, Barron's published an article which detailed some of the financial difficulties Panera was facing. Specifically, the article discussed increased competition, as well as existing Panera stores losing customers to new Panera locations that were being opened at a rapid pace. Panera's same- store sales gains had declined in recent months, bottoming out in the low single digits from a high of 10.2%. The Company's revenue and earnings per share were rising, but the return on capital was declining, resulting in a decline in shareholder value. In response to this news, the Company's shares declined over the next two days. The shares declined $1.39 per share, or 2.24 percent, to close on July 17, 2006 at $60.71 per share, on unusually heavy trading volume. The following day the Company's shares declined an additional $1.30, or 2.14 percent, to close on July 18, 2006 at $59.41, on unusually heavy trading volume.

Then on July 26, 2006, the Company shocked investors when it announced its second quarter financial results, and stated that its projected results for the period were below trend (approximately three percentage points below second quarter two-year comps). The Company further indicated that sales for the second half of the year were uncertain and would be influenced by a new pizza product the Company recently introduced. Moreover, the Company indicated that it had incurred higher startup expenses than in previous quarters, partly due to the introduction of the new product. Upon the release of this news, the Company's shares declined an additional $7.34 per share, or 12.38 percent, to close on July 26, 2006 at $51.93 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/

If you are a member of the class described above, you may, not later than March 25, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbtklaw.com

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Starbucks Tests $2.50 Premium Coffee to Boost Sales

Starbucks Corp. is experimenting with a $2.50 cup of coffee that would add a new, premium product to help fight the first drop in U.S. customer visits in its 37- year history.

In its hometown Seattle, Starbucks is testing a 12-ounce (360-milliliter) cup of ``fresh-pressed'' coffee at $2.50 each. The price is $2.25 in a Boston trial. Starbucks charges $1.55 for a regular brew. McDonald's Corp. has been stealing customers with $1.39 coffee and is challenging Starbucks by adding espresso counters.

The new drink, made in a machine that brews each cup individually, may become part of Chief Executive Officer Howard Schultz's plan to increase traffic in the 15,000 stores of the world's largest coffee chain. Starbucks is also experimenting with a $1 refillable cup of coffee and slowing its expansion.

"If they can create a better-tasting product and if they can get people to pay more for it, then you'd have the missing ingredient, which is pricing power,'' said Larry Miller, an analyst at RBC Capital Markets in Atlanta who has a sector perform'' rating on the stock.

At the same time, selling a more expensive drink may be tough as U.S. consumer spending slows, Miller said.

Starbucks has declined 11 percent in Nasdaq Stock Market trading this year after dropping 42 percent in 2007, the worst performance in the company's history. The stock fell 67 cents, or 3.6 percent, to $18.18 at 4:30 p.m. New York time.

Priced Like Lattes

A new brewed coffee would be priced just less than the lattes and cappuccinos that are now among Starbucks' most expensive. A 12-ounce cup of those drinks costs $2.55.

An $11,000 machine known as the Clover generates the new coffee. Inside, a piston rises and creates a vacuum that pulls water through ground coffee, much like a French press. The Clover's maker says it produces a better tasting drink because the grind, water temperature and other parameters can be set for each cup.

"Testing like this is something we do regularly,'' Starbucks spokesman Brandon Borrman said.
Starbucks is also trying out an eight-ounce, $1 cup of regular coffee with free refills in the Seattle area. In addition to McDonald's, Dunkin' Brands Inc. is undercutting Starbucks's $1.55 regular coffee with a 10-ounce cup for $1.39 and a 14-ounce for $1.59.

U.S. customer visits to Starbucks's cafes have declined for two straight quarters. Chairman Schultz, 54, replaced Jim Donald as CEO Jan. 7. He said in a memo last year that the chain had lost sight of the ``romance and theater'' of coffee as it expanded.

Slowing Growth

Since then, Starbucks has said it will open 350 fewer stores than planned through September and stop selling warm breakfast sandwiches, partly because they overwhelmed the aroma of coffee. Schultz also pledged to announce five new initiatives on March 19, declining to give details.

The Clover was designed in 2005 by two Stanford University graduates working from a converted trolley shed in Seattle. Their machine is now used in more than 100 cafes and has gained a cult following among coffee aficionados. The Clover's price compares with $1,000 to $4,000 for standard commercial brewers.

Servers can make cups of Sumatra or Ethiopia Shakisso in 30 to 50 seconds. At one cafe in Seattle, Starbucks offers a choice of six brews, with tasting notes styled after a wine list.

"We have made much progress as we begin to transform and innovate and there is much more to come,'' Schultz said last week in another memo to Starbucks employees. He said he was writing at 6:30 a.m. on a Sunday over ``a spectacular cup of Sumatra, brewed my favorite way -- in a French press.''