As traditional retailers and restaurant chains struggle, Panera Bread says it has hit a milestone that puts it at the forefront of the digital revolution.

The chain, known for healthy fare like sandwiches and salads, said its digital sales have soared above $1 billion on an annualized basis and are on track to be twice as high in two years. As a result, Panera says it can lay claim to having the highest rate of digital sales of any non-pizza restaurant chain. But its success isn’t lost on rivals.

Sales from mobile, Web and kiosk made up 26% of the company’s total sales, Panera said, and an estimated 1.2 million digital orders are placed per week.

“They’ve been a pioneer in a lot of this stuff. That’s the good news,” said Jack Russo, a senior analyst at brokerage Edward…