Earlier this week, Panera Bread released its fourth quarter report. The values revealed met market revenue estimates. At the same time, the company’s reported earnings beat the market expectations.
Panera Bread is a fast casual bakery-café chain of restaurants. It was founded in 1987 and is based in Sunset Hills, Missouri. The American chain operates across both the United States and Canada. In St. Louis, it is known as the Saint Louis Bread Company.
Earlier this week, the company released its fourth quarter report. And the numbers were somewhat better than expected.
Panera Bread reported a Q4 net income per share of $2.05. This marks a 6 percent increase when compared to the same period last year. It also slightly surpasses the market expectations. The Wall Street consensus was expecting a $2 per share value.
The company’s quarter revenue also marked a rise. It increased by 5 percent and reached $727.1 million. This value aligned to most market estimates for the quarter revenue.
Panera Bread also adjusted its full-year guidance. It is expecting earnings coming up to in between $7.45 to $7.70 per share. Market analysts are expecting a $7.67 value per share for the year.
Following the reports, the company also saw some stock upgrades. Oppenheimer analysts upgraded the Panera Bread stock to ‘Outperform’. They also added the company to the “top picks” list for 2017.
Oppenheimer Holdings is a full-service investment service and investment bank. They also released their 2017 EPS expectations for Panera. They have ‘soft’ such expectations. Nonetheless, the consensus is that the restaurant chain will present a bright long-term picture.
Panera Bread officials are positive in regards the stock. The official statement went as follows. Company representatives remain positive in regards to the stock. They consider and continue to believe that Panera Bread represents an attractive opportunity. And a long-term one nonetheless.
Following the release of its Q4 report, the company shares marked an increase. They rose by 2.58 percent in after-hours trading. They reached a $219.80 per share value.
Panera Bread also released comparable-store sales numbers. These were seen to have increased by 4.2 percent. As such, these brought them to a 7.2 percent rise over a 2-years period.
The Q4 comparable net-bakery café sales also marked an increase. They rose by 3 percent. This translates into a 6.6 percent increase over a 2-years period.
Panera Bread closed 2016 with a 15 percent delivery rate in its system-wide bakery-cafes. The company hopes to raise this value in 2017. It will try to increase it by 30 to 40 percent.
According to reports, the company’s digital sales accounted for about 24 percent of its total sales value. Reportedly, Panera Bread also secured a new loan. This is said to account up to $200 million and span over 5 years.
Ron Shaich, the Panera Bread CEO and Chairman released a statement. According to him, the company is looking forward to completely roll out its initiatives. Panera already made some peak investments. Now, it will be trying to complete them. And later on, to enjoy the benefits that they will bring.
The company is confident in the strength of its initiatives. As such, the officials are confident that they will sustain and grow Panera Bread’s growth. They are expecting a market share gain. And also a sustainable earnings growth, with values in the double digits area.
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