Panera Sets New 52-Week High - Analyst Blog
April 17 2013 - 8:20AM
Zacks
Shares of Panera Bread Co. (PNRA) hit its
52-week high of $185.67 on Apr 15 and eventually closed at $182.77,
generating a return of approximately 12.6% year-to-date. A positive
outlook, solid fourth quarter 2012 results and an overall strong
business model drove the shares of this restaurant company. Average
volume of shares traded over the last three months came in at
approximately 610K.
Positive First Quarter View
Panera, which is scheduled to report its first quarter 2013
earnings this month, expects earnings to be in the range of
$1.62–$1.66 per share for the first quarter of 2013, reflecting
16%–19% growth.
For full-year 2013, Panera continues to expect earnings per
share to grow in the range 17–19% year over year. Management
reiterated its 2013 earnings per share growth expectation despite
higher-than-anticipated earnings recorded in 2012.
Strong Fourth Quarter
Panera Bread’s fourth-quarter 2012 earnings of $1.75 per share
surpassed the Zacks Consensus Estimate by 0.6% and the year-ago
quarter’s earnings by 23.0%. Increased revenues (up 15%) along with
superior operating margins led to the beat.
The company’s salads and sandwich offerings are gaining
traction. In fourth-quarter 2012, signature Salad sales increased
10.0%, thereby indicating salad sales growth of 10% or more in 13
out of the last 14 quarters.
Overall a Strong Company
Panera has largely remained unruffled by the recent economic
slowdown. Its competitive advantage can be validated by the fact
that Panera’s comparable store sales (comps) have increased 5% or
more in 10 out of the past 12 quarters.
In addition to the new menu launch, Panera has been extensively
working on its marketing initiatives. Yet another key long-term
growth driver for the company is the “My Panera” loyalty program.
The program rewards customers for frequently visiting Panera
Bread's cafes.
This company currently carries a Zacks Rank #2 (Buy)
Other Stocks to Consider
Stocks that are performing well and are worth considering in the
restaurant sector include Red Robin Gourmet Burgers
Inc. (RRGB), Burger King Worldwide Inc.
(BKW) and Cracker Barrel Old Country Store Inc.
(CBRL). While Red Robin and Cracker Barrel retain a Zacks Rank #1
(Strong Buy), Burger King carries a Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis Report
CRACKER BARREL (CBRL): Free Stock Analysis Report
PANERA BREAD CO (PNRA): Free Stock Analysis Report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
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