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Einstein Noah Restaurant Group (BAGL) Neutral Updating Estimates Following 2Q14 Results

PRICE: US$15.13        Note: Price as of the close July 31, 2014.

TARGET: US$16.00        ~7x FY15E EV/EBITDA of $58.2m (net debt$98m, s/o 18m)

Nicole Miller ReganSr Research Analyst, Piper Jaffray & Co.612 303-6637, nmr@pjc.com

Joshua C. Long, CFAResearch Analyst, Piper Jaffray & Co.612 303-6928, joshua.c.long@pjc.com

Changes Previous CurrentRating — NeutralPrice Tgt — US$16.00FY14E Rev (mil) US$442.2 US$453.3FY15E Rev (mil) US$460.6 US$474.8FY14E EPS US$0.98 US$0.94FY15E EPS — US$1.10

52-Week High / Low US$18.30 / US$14.09Shares Out (mil) 18.0Market Cap. (mil) US$272.3Avg Daily Vol (000) 76Book Value/Share US$2.32Net Cash Per Share NADebt to Total Capital 70%Div (ann) 0.52Yield 3.44%Fiscal Year End Dec

Price Performance - 1 Year

Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14

19

18

17

16

15

14

13

USD

Source: Bloomberg

CONCLUSIONFor 2Q14, Einstein Noah reported operating EPS of $0.18 and system-wide same-storesales of +1.6% vs. consensus expectations of $0.23 and +1.7%, respectively. Resultswere also driven by company-owned comps of +0.9%. With new units opening up athigher-than-previously-expected levels of late and when looking towards the work beingdone around operations and improved brand imaging vis-a-vis remodels, we believe anopportunity to drive more consistent cash flow and earnings exists. That said, we aremaintaining our Neutral rating and $16 price target as the company continues its searchfor a permanent CEO, which we understand is progressing. Our $16 target is based on 7xour FY15E EV/EBITDA (vs. 9x our FY14 EV/EBITDA prior). The now lower multiplereflects a longer time horizon.

• 2Q14 EPS results a touch below consensus: 2Q14 earnings of $0.18 in 2Q14 comparedto consensus estimates of $0.23. Total revenues of $112.4M reflected a +1.6% system-wide same-store sales result and approximately 4.7% price/mix and (3.8%) traffic.The company also paid its regular quarterly dividend of $0.13.

• Updating Model: We are largely maintaining our forward EPS estimates at $0.94 and$1.10 (vs. $0.98 and $1.10 prior) for FY14 and FY15, respectively, driven in part by oursystem-wide comp assumption +1.4% and +1.1% for FY14 & FY15, respectively (vs.+1.2% and +1.1%, respectively prior). Our FY14 estimates are largely maintainedoutside of 2Q14 results vs. our initial expectations. Based on the company's updatedguidance we estimate total revenues to increase 4.3% y/y to $453.3M for FY14. OurFY15 EPS expectations of $1.10 are driven by revenue of $474.8M and are based onsystem-wide comps of +1.1% and 75 new unit openings.

RISKS TO ACHIEVEMENT OF PRICE TARGETRisks include balancing key initiatives, potential unforeseen delays in franchise/licensedevelopment and commodity volatility as well as the (now) hiring and integration of anew CEO.

COMPANY DESCRIPTIONEinstein Noah Group, Inc. owns, operates and franchises/licenses a chain of specialtybagel restaurants under the names Einstein, Noah's and Manhattan's.

YEAR

2013A

2014E

2015E

REVENUE (US$ m)

Mar Jun Sep Dec FY FY RM

106.1 107.8 106.4 114.2 434.5 0.6x

109.9A 112.4A 111.3 119.7 453.3 0.6x

114.4 117.5 117.1 125.9 474.8 0.6x

EARNINGS PER SHARE (US$)

Mar Jun Sep Dec FY FY P/E

0.14 0.19 0.22 0.27 0.82 18.5x

0.15A 0.18A 0.25 0.36 0.94 16.1x

0.21 0.25 0.28 0.37 1.10 13.8x

Page 1 of 5Einstein Noah Restaurant Group, Inc.

Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be awarethat the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report asonly a single factor in making their investment decisions. This report should be read in conjunction with important disclosureinformation, including an attestation under Regulation Analyst certification, found on pages 4 - 5 of this report or at the followingsite: http://www.piperjaffray.com/researchdisclosures.

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Actual vs. Estimated Variance: The following chart provides a breakdown of the company's quarterly results versus ourestimates and the company's prior year results.

Einstein Noah Restaurant Group, Inc.Quarter ComparisonFiscal Year Ended December Actual vs. PJC EPS vs. Street Est. vs. Prior Yr.Revised 07/31/14 2Q14 2Q14 Impact 2Q14 2Q13SSS: Company-Owned +0.9% +1.0% (10) bps +1.7% +0.4% 50.0 bps

SSS: System-wide +1.6% +1.1% 49 bps +1.7% +0.7% 90.0 bpsINCOME STATEMENT

Company-Owned 100.2$ 96.5$ 3.7 0.113 - 97.1$ 3.1Manufacturing Revenues 9.2 8.8 0.4 0.013 - 8.0 1.2Franchise/License Royalties/Fees 3.0 3.3 (0.3) (0.009) - 2.7 0.3

Total Revenues 112.4 108.6 3.8 0.117 112.2 107.8 4.7Food, Beverage and Packaging 27.0 27.0 (0.0) (0.000) - 27.1 (0.1)Labor 29.3 28.4 (0.9) (0.032) - 28.5 0.8Rent and Related Expenses 11.6 10.1 (1.5) (0.050) 10.6Other Operating Expenses 11.9 10.6 (1.3) (0.044) - 11.0 1.0Marketing Expenses 3.0 2.8 (0.2) (0.006) - 2.8 0.1

Restaurant Profit Margin 17.4 17.6 (0.2) (0.007) - 17.1 0.3Manufacturing Costs 7.3 6.7 (0.6) (0.019) - 5.6 1.7

Contribution Margin 22.2 22.9 (0.7) (0.022) - 22.1 0.2General & Administrative 10.5 10.2 (0.3) (0.011) - 10.2 0.4Depreciation & Amortization 4.6 4.7 0.1 0.003 - 4.6 (0.0)Pre-Opening 0.2 0.3 0.1 0.004 0.3Provision For Closing/Other - - - - - 0.1 (0.1)

Operating Income 6.9 7.7 (0.8) (0.025) - 6.8 0.1Interest Expense/(Income) 1.1 1.2 0.1 0.004 - 1.7 (0.6)Other Expense/(Income) - - - - - - -

Pre-Tax Income 5.9 6.5 (0.6) (0.021) - 5.2 0.7Income Taxes 2.6 2.5 (0.1) (0.004) - 1.8 0.8

Net Income--Operating 3.3 4.0 (0.7) (0.039) - 3.3 (0.1)Non-Operating Expenses/(Income) 0.7 - (0.7) (0.039) - - 0.7

Net Income--Reported 2.5 4.0 (1.4) (0.078) - 3.3 (0.8)Pro Forma Expenses/(Income) - - - - - - -

Taxed Net Income--Pro Forma 2.5 4.0 (1.4) (0.078) - 3.3 (0.8)Shares Outstanding--Diluted 18.2 18.1 0.2 0.002 - 17.9 0.3

EBITDA 11.5 12.4 (0.9) 11.4*EPS--Operating 0.18$ 0.22$ (0.04)$ (0.02)$ 0.23$ 0.19$ (0.01)$EPS--Extraordinary 0.04$ -$ -$ (0.04)$ -$ -$ -$**EPS--Reported 0.14$ 0.22$ (0.08)$ (0.08)$ 0.23$ 0.19$ (0.05)$

MARGIN ANALYSISCompany-Owned 89.1% 88.9% 27 bps - 90.1% (96) bpsManufacturing Revenues 8.1% 8.1% 8 bps - 7.4% 75 bpsFranchise/License Royalties/Fees 2.7% 3.1% (35) bps - 2.5% 20 bps

Total Revenues 100.0% 100.0% - bps - 100.0%Food, Beverage and Packaging 27.0% 28.0% (103) bps 27.4% 28.0% (99) bpsLabor 29.3% 29.4% (15) bps - 29.4% (13) bpsRent and Related 11.6% 10.5% 109 bps - 10.9% 71 bpsOther Operating Expenses 11.9% 11.0% 91 bps - 11.3% 63 bpsMarketing Expenses 3.0% 2.9% 6 bps - 2.9% 3 bps

Restaurant Profit 17.3% 18.2% (88) bps 18.1% 17.6% (26) bpsManufacturing Costs 80.0% 77.0% 298 bps - 70.8% 917 bps

Contribution Margin 19.8% 21.1% (131) bps - 20.5% (72) bpsGeneral & Administrative 9.4% 9.4% (3) bps - 9.4% (8) bpsDepreciation & Amortization 4.1% 4.3% (24) bps - 4.3% (22) bpsPre-Opening 0.2% 0.4% (14) bps - 0.3% (13) bpsProvision For Closing/Other 0.0% 0.0% - bps - 0.1% (13) bps

Operating Income 6.2% 7.1% (91) bps 7.0% 6.3% (17) bpsInterest Expense/(Income) 1.0% 1.1% (15) bps - 1.5% (57) bpsOther Expense/(Income) 0.0% 0.0% - bps - 0.0% - bps

Pre-Tax Income 5.2% 6.0% (76) bps - 4.8% 41 bpsIncome Taxes (Tax Rate) 44.5% 39.0% 554 bps - 35.7% 889 bps

Net Income--Operating 2.9% 3.6% (75) bps - 3.1% (20) bpsUNITSCompany-Owned Restaurants 456 464 (8) - 453 3Franchise Restaurants 130 133 (3) - 107 23License Restaurants 319 319 - - 261 58

Total Restaurants 905 916 (11) - 821 84Source: Company reports and Piper Jaffray & Co. estimates. Nicole Miller Regan (612) 303-6637Current disclosure information for this company is located at: http://www.piperjaffray.com/researchdisclosures

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Einstein Noah Restaurant Group, Inc.

Earnings Model 2013 Actual 2014 Estimate 2015 Estimate Fiscal Year Ended December

Fiscal Year Ended December 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14E 4Q14E 1Q15E 2Q15E 3Q15E 4Q15E 2012 2013 2014E 2015ERevised 07/31/14 ($ millions) 04/20/13 07/13/13 10/01/13 12/29/13 04/20/14 07/13/14 09/29/14 12/29/14 04/20/15 07/13/15 09/29/15 12/29/15 52-wks 52-wks 52-wks 52-wksSSS: Company-Owned (1.0%) +0.4% (1.8%) (0.5%) +1.7% +0.9% +1.0% +1.0% +1.0% +1.0% +1.0% +1.0% +0.9% (0.7%) +1.2% +1.0% SSS: System-wide (0.6%) +0.7% (1.4%) +0.1% +1.6% +1.6% +1.1% +1.1% +1.1% +1.1% +1.1% +1.1% +1.0% (0.3%) +1.4% +1.1%

INCOME STATEMENTCompany-Owned 94.2$ 97.1$ 95.6$ 101.4$ 96.6$ 100.2$ 99.0$ 105.2$ 99.5$ 103.9$ 103.4$ 109.7$ 384.8$ 388.4$ 401.0$ 416.5$ Manufacturing Revenues 8.9 8.0 7.9 8.8 9.5 9.2 8.7 9.7 10.4 10.1 9.6 10.6 31.0 33.6 37.0 40.7 Franchise/License Royalties/Fees 3.0 2.7 2.9 4.0 3.8 3.0 3.6 4.8 4.4 3.5 4.1 5.5 11.2 12.5 15.2 17.6

Total Revenues 106.1 107.8 106.4 114.2 109.9 112.4 111.3 119.7 114.4 117.5 117.1 125.9 427.0 434.5 453.3 474.8 Food, Beverage and Packaging 26.6 27.1 26.7 28.7 26.6 27.0 27.1 28.4 27.4 28.6 28.3 30.0 106.9 109.1 109.1 114.2 Labor 28.7 28.5 27.7 28.9 28.9 29.3 28.7 30.7 29.8 30.4 30.0 32.4 111.8 113.8 117.6 122.6 Rent and Related Expenses 10.8 10.6 11.0 11.4 11.3 11.6 11.4 11.4 11.4 11.2 11.4 11.5 41.5 43.8 45.7 45.6 Other Operating Costs 10.1 11.0 11.2 11.1 11.3 11.9 10.9 11.6 11.4 11.4 11.4 12.1 40.8 43.4 45.7 46.3 Marketing Expenses 2.5 2.8 2.4 3.2 3.3 3.0 2.4 3.2 3.0 3.0 2.6 3.4 11.4 10.9 11.8 12.0

Restaurant Profit Margin 15.5 17.1 16.6 18.1 15.3 17.4 18.5 20.0 16.4 19.2 19.8 20.4 72.3 67.3 71.2 75.8 Manufacturing Costs 6.5 5.6 6.2 6.5 7.6 7.3 6.6 7.1 7.8 7.6 7.2 7.9 24.2 24.8 28.7 30.4

Contribution Margin 20.9 22.1 21.3 24.3 21.0 22.2 24.2 27.3 23.4 25.3 26.3 28.7 90.3 88.6 94.7 103.6 General & Administrative 10.2 10.2 9.8 10.2 10.8 10.5 10.5 10.4 10.6 10.9 11.0 11.3 39.6 40.4 42.1 43.8 Depreciation & Amortization 4.9 4.6 4.4 4.2 4.3 4.6 4.9 4.4 5.0 5.3 5.2 4.7 19.7 18.2 18.2 20.1 Pre-Opening Expenses 0.3 0.3 0.3 0.1 0.2 0.2 0.3 0.4 0.4 0.4 0.4 0.4 1.8 1.1 1.1 1.7 Provision For Closing/Other 0.1 0.1 0.2 0.6 0.2 - - - - - - - 1.2 1.1 0.2 -

Operating Income 5.4 6.8 6.5 9.2 5.6 6.9 8.5 12.1 7.4 8.6 9.7 12.3 28.1 27.9 33.1 38.0 Interest Expense/(Income) 1.7 1.7 1.4 1.2 1.1 1.1 1.1 1.3 1.2 1.2 1.2 1.2 3.4 6.0 4.6 4.8 Other Expense/(Income) - - - - - - - - - - - - - - - -

Pre-Tax Income 3.6 5.2 5.1 8.0 4.5 5.9 7.3 10.8 6.2 7.4 8.5 11.1 24.7 21.9 28.5 33.2 Income Taxes 1.3 1.8 1.1 3.1 1.8 2.6 2.9 4.2 2.4 2.9 3.3 4.3 8.6 7.3 11.5 13.0

Net Income--Operating 2.4 3.3 4.0 4.9 2.7 3.3 4.5 6.6 3.8 4.5 5.2 6.8 16.1 14.6 17.1 20.3 Non-Operating Expenses/(Income) - - - - 0.7 0.7 - - - - - - 3.4 - 1.4 -

Net Income--Reported 2.4 3.3 4.0 4.9 2.1 2.5 4.5 6.6 3.8 4.5 5.2 6.8 12.7 14.6 15.7 20.3 Shares Outstanding--Diluted 17.4 17.9 17.9 18.0 18.0 18.2 18.3 18.3 18.3 18.4 18.4 18.4 17.2 17.8 18.2 18.4

EBITDA 10.3 11.4 10.9 13.4 9.9 11.5 13.4 16.6 12.4 13.9 14.8 17.0 47.8 46.1 51.4 58.2 EPS--Operating 0.14$ 0.19$ 0.22$ 0.27$ 0.15$ 0.18$ 0.25$ 0.36$ 0.21$ 0.25$ 0.28$ 0.37$ 0.93$ 0.82$ 0.94$ 1.10$ EPS--Extraordinary -$ -$ -$ -$ 0.04$ 0.04$ -$ -$ -$ -$ -$ -$ 0.20$ -$ 0.08$ -$ EPS--Reported 0.14$ 0.19$ 0.22$ 0.27$ 0.11$ 0.14$ 0.25$ 0.36$ 0.21$ 0.25$ 0.28$ 0.37$ 0.74$ 0.82$ 0.86$ 1.10$

MARGIN ANALYSISCompany-Owned 88.8% 90.1% 89.9% 88.8% 87.9% 89.1% 89.0% 87.9% 87.0% 88.4% 88.3% 87.2% 90.1% 89.4% 88.5% 87.7%Manufacturing Revenues 8.4% 7.4% 7.4% 7.7% 8.6% 8.1% 7.8% 8.1% 9.1% 8.6% 8.2% 8.4% 7.3% 7.7% 8.2% 8.6%Franchise/License Royalties/Fees 2.8% 2.5% 2.7% 3.5% 3.5% 2.7% 3.2% 4.0% 3.9% 3.0% 3.5% 4.4% 2.6% 2.9% 3.4% 3.7%

Total Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Food, Beverage and Packaging 28.2% 28.0% 27.9% 28.3% 27.5% 27.0% 27.4% 27.0% 27.5% 27.5% 27.4% 27.3% 27.8% 28.1% 27.2% 27.4%Labor 30.4% 29.4% 29.0% 28.5% 29.9% 29.3% 29.0% 29.2% 30.0% 29.3% 29.0% 29.5% 29.1% 29.3% 29.3% 29.4%Rent and Related Expenses 11.5% 10.9% 11.5% 11.3% 11.7% 11.6% 11.5% 10.8% 11.5% 10.8% 11.0% 10.5% 10.8% 11.3% 11.4% 10.9%Other Operating Expenses 10.8% 11.3% 11.7% 10.9% 11.7% 11.9% 11.0% 11.0% 11.5% 11.0% 11.0% 11.0% 10.6% 11.2% 11.4% 11.1%Marketing Expenses 2.6% 2.9% 2.5% 3.1% 3.4% 3.0% 2.4% 3.0% 3.0% 2.9% 2.5% 3.1% 3.0% 2.8% 2.9% 2.9%

Restaurant Profit 16.5% 17.6% 17.4% 17.8% 15.9% 17.3% 18.7% 19.0% 16.5% 18.5% 19.1% 18.6% 18.8% 17.3% 17.8% 18.2%Manufacturing Costs (as % of Manf. Revs) 72.7% 70.8% 77.7% 74.0% 80.2% 80.0% 76.0% 74.0% 75.0% 75.0% 75.0% 74.0% 78.1% 73.8% 77.5% 74.7%

Contribution Margin 19.7% 20.5% 20.0% 21.3% 19.1% 19.8% 21.7% 22.8% 20.5% 21.5% 22.4% 22.8% 21.2% 20.4% 20.9% 21.8%General & Administrative 9.6% 9.4% 9.2% 8.9% 9.8% 9.4% 9.4% 8.7% 9.3% 9.3% 9.4% 9.0% 9.3% 9.3% 9.3% 9.2%Depreciation & Amortization 4.7% 4.3% 4.2% 3.7% 3.9% 4.1% 4.4% 3.7% 4.4% 4.5% 4.4% 3.7% 4.6% 4.2% 4.0% 4.2%Pre-Opening Expenses 0.3% 0.3% 0.4% 0.1% 0.2% 0.2% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.5% 0.3% 0.3% 0.4%Provision For Closing/Other 0.1% 0.1% 0.2% 0.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.3% 0.0% 0.0%

Operating Income 5.1% 6.3% 6.1% 8.0% 5.1% 6.2% 7.6% 10.2% 6.5% 7.4% 8.3% 9.8% 6.6% 6.4% 7.3% 8.0%Interest Expense/(Income) 1.6% 1.5% 1.3% 1.1% 1.0% 1.0% 1.0% 1.1% 1.0% 1.0% 1.0% 1.0% 0.8% 1.4% 1.0% 1.0%Other Expense/(Income) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Pre-Tax Income 3.4% 4.8% 4.8% 7.0% 4.1% 5.2% 6.6% 9.1% 5.4% 6.3% 7.2% 8.8% 5.8% 5.0% 6.3% 7.0%Income Taxes (Tax Rate) 34.8% 35.7% 21.9% 39.0% 39.2% 44.5% 39.0% 39.0% 39.0% 39.0% 39.0% 39.0% 34.8% 33.5% 40.2% 39.0%

Net Income--Operating 2.2% 3.1% 3.8% 4.2% 2.5% 2.9% 4.0% 5.5% 3.3% 3.9% 4.4% 5.4% 3.8% 3.4% 3.8% 4.3%EBITDA 9.7% 10.6% 10.3% 11.7% 9.0% 10.2% 12.0% 13.9% 10.9% 11.9% 12.7% 13.5% 11.2% 10.6% 11.3% 12.2%

YEAR-OVER-YEAR % CHANGECompany-Owned Restaurant Sales 0.8% 0.7% 0.2% 1.9% 2.5% 3.2% 3.5% 3.8% 3.0% 3.6% 4.5% 4.3% 1.6% 0.9% 3.3% 3.9%Manufacturing Revenues 5.7% 10.0% 5.4% 12.0% 6.3% 15.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% -10.1% 8.2% 10.2% 10.0%Franchise Royalties and Fees -0.2% 14.7% 11.7% 21.6% 28.8% 12.9% 23.8% 19.9% 15.5% 16.0% 15.6% 15.0% 8.3% 12.1% 21.4% 15.5%

Total Revenues 1.2% 1.7% 0.9% 3.2% 3.5% 4.4% 4.6% 4.8% 4.1% 4.5% 5.3% 5.2% 0.8% 1.8% 4.3% 4.7%Net Income--Operating -33.5% 4.1% 17.8% -18.2% 15.3% -2.5% 11.4% 36.2% 38.4% 39.8% 15.6% 2.7% 15.6% -9.5% 17.1% 18.8%Net Income--Pro Forma -25.6% 13.1% 17.8% 53.2% -12.8% -23.6% 11.4% 36.2% 83.1% 78.5% 15.6% 2.7% -4.2% 14.7% 7.7% 29.2%EPS--Operating -34.5% 0.3% 13.5% -21.6% 11.3% -4.3% 9.4% 34.1% 36.0% 38.7% 14.6% 1.8% 14.1% -12.5% 14.6% 17.6%EBITDA -9.0% 4.5% -3.7% -5.5% -3.7% 0.6% 22.1% 23.8% 25.1% 21.1% 11.1% 2.4% 6.5% -3.6% 11.5% 13.2%Unit Growth: Company 3.1% 1.1% 2.0% -0.7% -0.4% 0.7% 0.2% 2.0% 2.2% 3.5% 3.2% 3.2% 4.8% -0.7% 2.0% 3.2%Unit Growth: Franchise & License 9.4% 9.9% 8.4% 20.0% 20.5% 22.0% 20.2% 12.9% 14.0% 13.8% 13.1% 12.5% 6.6% 20.0% 12.9% 12.5%

Unit Growth: Total 5.8% 4.9% 4.8% 8.3% 8.8% 10.2% 9.3% 7.2% 7.9% 8.6% 8.2% 7.9% 5.6% 8.3% 7.2% 7.9%UNIT DATA

Company-Owned Restaurants 461 453 461 458 459 456 462 467 469 472 477 482 461 458 467 482Franchise Restaurants 99 107 109 126 127 130 136 142 147 152 157 162 97 126 142 162License Restaurants 262 261 278 300 308 319 329 339 349 359 369 379 258 300 339 379

Total Restaurants 822 821 848 884 894 905 927 948 965 983 1,003 1,023 816 884 948 1,023Source: Company reports and Piper Jaffray & Co. estimates.

Current disclosure information for this company is located at: http://www.piperjaffray.com/researchdisclosures Nicole Miller Regan (612) 303-6637

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IMPORTANT RESEARCH DISCLOSURES

Notes: The boxes on the Rating and Price Target History chart above indicate the date of the Research Note, the rating, and the price target. Eachbox represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first Notewritten during the past three years.

Legend:I: Initiating CoverageR: Resuming CoverageT: Transferring CoverageD: Discontinuing CoverageS: Suspending CoverageOW: OverweightN: NeutralUW: UnderweightNA: Not AvailableUR: Under Review

Distribution of Ratings/IB Services

Piper Jaffray

IB Serv./Past 12 Mos.

Rating Count Percent Count Percent

BUY [OW] 361 62.35 94 26.04

HOLD [N] 206 35.58 21 10.19

SELL [UW] 12 2.07 0 0.00

Note: Distribution of Ratings/IB Services shows the number of companies currently in each rating category from which Piper Jaffray and its affiliatesreceived compensation for investment banking services within the past 12 months. FINRA rules require disclosure of which ratings most closelycorrespond with "buy," "hold," and "sell" recommendations. Piper Jaffray ratings are not the equivalent of buy, hold or sell, but instead representrecommended relative weightings. Nevertheless, Overweight corresponds most closely with buy, Neutral with hold and Underweight with sell. SeeStock Rating definitions below.

Analyst Certification — Nicole Miller Regan, Sr Research Analyst

Analyst Certification — Joshua C. Long, CFA, Research AnalystThe views expressed in this report accurately reflect my personal views about the subject company and the subject security. In addition, no part ofmy compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.

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Research DisclosuresPiper Jaffray was making a market in the securities of Einstein Noah Restaurant Group, Inc. at the time this research report was published. PiperJaffray will buy and sell Einstein Noah Restaurant Group, Inc. securities on a principal basis.

Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.

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• Neutral (N): Anticipated to perform in line relative to the median of the group of stocks covered by the analyst.

• Underweight (UW): Anticipated to underperform relative to the median of the group of stocks covered by the analyst.

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