Lofty expectations Panera's pricing power and value proposition has allowed the company to prosper, and shareholders have reaped the rewards. The stock has been one of the best-performing equities not only among its peers, but also in the entire consumer discretionary space. However, as the economy continues to improve, Panera faces inflationary headwinds that could affect earnings and force difficult pricing decisions.
Not really. Panera learned from the last commodity bubble and now hedges its inputs. I believe the last conf call said wheat for 2011 was 75% locked in already. So, to the contrary, this will be a further point of differentiation for Panera vs. competitors that do not hedge.