PNRA

Panera Bread Company

Consumer


Presented:05/28/2014
Price:$154.78
Cap:$4.25B
Current Price:$314.93
Cap:$7.15B

Presented

Date05/28/2014
Price$154.78
Market Cap$4.25B
Ent Value$4.15B
P/E Ratio24.33x
Book Value$27.78
Div YieldN/A
Shares O/S27.47M
Ave Daily Vol570,000
Short Int9.22%

Current

Price$314.93
Market Cap$7.15B
Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. The company operates in three segments: Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. The Bakery-Cafe Operations segment operates company-owned bakery-cafes under the Panera Bread, Saint Louis Bread Co., or Paradise Bakery & Café names that offer fresh baked goods, made-to-order sandwiches, soups, salads, pasta dishes, custom roasted coffees, and other complementary products through on-premise sales, as well as provide catering services. The Franchise Operations segment licenses Panera Bread or Paradise Bakery & Café names and monitors the operations of these bakery-cafes. The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, cream cheese, and proprietary sweet goods items. As of December 31, 2013, it owned and franchised 1,777 bakery-cafes. The company was formerly known as Au Bon Pain Co., Inc. and changed its name to Panera Bread Company in August 1998. Panera Bread Company was founded in 1981 and is based in St. Louis, Missouri.

Publicly traded companies mentioned herein: Panera Bread Company (PNRA),

Highlights

Shares of Panera Bread Company (PNRA) had a phenomenal run from the $50s up to nearly $200 (2009 to 2013); however, over the past year shares are down ~20% as the company’s growth appears to have slowed. The presenter is short shares and thinks the risk/ reward at ~$153 is attractive. Street estimates for 2014 EPS stand at around $6.80-6.90 after management cut guidance for the year, and the presenter sees the potential for further reductions in earnings guidance and estimate cuts given recent sales trends, rising input costs, and intensifying competition.

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Idea Discussion

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