If you have ever been to a Panera resturant or shop you know they don't sell just bread. Their foods are excellent and healthful. And for the bread lovers, it's hard to eat and leave without taking along some pastry or breads, which are also excellent. I've been to Panera shops that are located next to an array of fast food places and invariably Panera is packed with customers, while the fast food places have hardly any. I believe another 140 stores are being planned, I think the stock will do well over the long haul.
Could not agree more. I am reducing carbs by having the Panera soup and salad about three times a week. Need to go at 2, because it is too crowded at lunch. I'm long on this stock, despite recent problems. It is taking New Jersey by storm.
Ok, we all know that Panera is not just a bread company. But if we take your rationale, that means that there is another reason for weak SSS besides low-carb concerns. This should be even more troubling for those of you longs out there. Weather is a poor excuse. Was the weather bad for the last 12 months plus? Sure, you can keep building new stores, but you need SSS support to support lofty earnings projections. I applaud the Piper Jaffray analyst, who is the only guy with a reasonable mind out there who isn't chasing banking deals. Institutional investors still like it partly because the sell-side still likes the story. Once they throw in the towel, we shall see multiples contraction and downward earnings revision.
True, eventually PNRA will mature as you describe, but I'm betting this plateau is only temporary. As someone on this board pointed out, if this stock was over the top, you'd see the institutions bailing out and the stock price dropping substantially. Contrary to that buyers have stepped in this morning. I'm more inclined to think we'll go sideways for awhile, until any short-term problems are resolved and better results recorded. Then we'll move up again. In the meantime, the shorts will hover like vultures. Good luck.