Panera Bread Earnings: Here’s Why Investors are Selling Shares Now

Panera Bread Co. (NASDAQ:PNRA) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.2%.

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Panera Bread Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.14% to $1.64 in the quarter versus EPS of $1.40 in the year-earlier quarter.

Revenue: Rose 12.68% to $561.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Panera Bread Co. reported adjusted EPS income of $1.64 per share. By that measure, the company missed the mean analyst estimate of $1.65. It missed the average revenue estimate of $566.3 million.

Quoting Management: Ron Shaich, Chairman and Co-CEO, commented, “We are pleased to report 17% EPS growth in the first quarter of 2013 despite inclement weather that impacted Panera as well as the overall restaurant industry. We believe we are in a strong position to hit our 2013 EPS targets. In addition, we are confident that the substantial investments we are making in food, marketing, catering and operational improvements will lay the foundation for our success over the next 3 to 5 years.”

Key Stats (on next page)…

Revenue decreased 1.71% from $571.55 million in the previous quarter. EPS decreased 6.29% from $1.75 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.78 and has not changed. For the current year, the average estimate has moved up from a profit of $7.03 to a profit of $7.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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