Panera Bread’s Net Income Growth Is Down To 13%
An Investor's Guide To Panera Bread (Part 12 of 15)
Net income
In the last part of this series, we looked at Panera Bread’s (PNRA) operating costs and margins. Now, we’ll look at the company’s bottom line.
In the above chart, we see that PNRA’s net profit margin grew since 2008. At the end of fiscal year 2013, the company had a net income of $196 million. It had a net profit margin of 8.2%—compared to a net income of $173 million and a net profit margin of 8.14% at the end of fiscal year 2012. This resulted in a diluted earnings per share, or EPS, of $6.81 at the end of 2013—compared to an EPS of $5.89 in 2012.
Slower revenue growth
PNRA’s net income grew 13% year-over-year, or YoY, in 2013—compared to 28% in 2012. Slower revenue growth caused the decline in net income growth. So, should investors worry about PNRA’s future?
Not yet! PNRA is aggressively adding restaurant units. This is fueling the revenue growth. PNRA only has ~1,800 restaurants in the US. McDonald’s (MCD) has 14,000 restaurants. Burger King (BKW) has 7,000 restaurants. In the next part of this series, we’ll look at PNRA’s unit growth.
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