Can Panera Bread Maintain Its Impressive 1Q16 Momentum?
Panera Bread (PNRA), which operates a chain of bakery-café fast casual restaurants in the United States and Canada, announced its 1Q16 results on April 26, 2016.
The company reported 1Q16 revenue of $685.2 million and adjusted EPS (earnings per share) of $1.56. The company’s revenue rose by 5.7%, and its adjusted EPS rose by 10.3%.
Analysts were expecting PNRA’s revenue to be $673.8 million and its EPS to be $1.5. The company’s better-than-expected results and the rise in its 2016 guidance increased investors’ confidence. On a day when the broader market was weak, with the NASDAQ Composite (IXIC) down by 0.5%, Panera’s share price rose by 0.4%.
Panera’s announcement of the expansion of its adjacent catering and delivery business in 4Q15 increased investors’ confidence. Since the beginning of 2016, Panera’s share price has risen by 9.5%. In the same period, the share prices of its peers Chipotle Mexican Grill (CMG), Shake Shack (SHAK), and Brinker International (EAT) fell by 13.1%, 5.3%, and 4.3%, respectively.
Also, the share price of the Guggenheim S&P 500 Pure Growth ETF (RPG) fell by 0.5% year-to-date. RPG has 44% of its holdings invested in restaurant and travel companies.
In this series, we’ll discuss Panera Bread’s 1Q16 performance. We’ll compare it with the company’s performance during the same quarter last year. We’ll also explore the factors that could drive PNRA’s revenue in the coming quarters. Finally, we’ll look at the company’s valuation multiple and analysts’ estimates and recommendations.
First, we’ll discuss Panera’s 1Q16 revenue.
Browse this series on Market Realist: