Panera Bread (NASDAQ: PNRA) - operator of casual bakery/cafes with free WiFi and tasty cinnamon-crunch bagels - was the latest restaurateur to report earnings tonight. After the close, PNRA announced second-quarter income totaled $12.6 million, or 39 cents per share, matching the average analyst estimate. This marks a 10% decline from last year's results. Revenue, however, managed to climb 28% to $253 million, edging out Wall Street expectations of $250.6 million. Same-restaurant sales rose 2.1% during the reporting period, led by strength in franchise-operated locations.
Looking ahead to the third quarter, PNRA expects per-share earnings results of 32 cents to 38 cents per share, well below analysts' current view of 43 cents. For July, Panera officials predict same-store sales growth of 3.6% to 3.9%.
Investors appear to be brushing off the positive revenue surprise and focusing on the grim third-quarter outlook, which falls short of analysts' expectations. In after-hours trading, PNRA has dropped 6.5%. If this negative momentum continues through tomorrow's open, the stock could hit a new 52-week low.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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Reader Comments (Page 1 of 1)
7-24-2007 @ 9:28PM
justpicky02 said...
The bread company is a good investment ......