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Why Are Investors Confident before Panera Bread’s 1Q16 Results?

Ralph Nathan

Will Panera Bread Keep Rising after Its 1Q16 Earnings?

Panera Bread’s stock performance

Panera Bread (PNRA) is set to announce its 1Q16 results on April 26 after the Market closes. In 2015, the company delivered stock returns of 11.4%. The share price is up by 7.9% year-to-date.

Rise in the share price

Since the announcement of its fiscal 4Q15 results on February 9, 2016, the company’s share price appreciated by 13.7%. The announcement of the expansion of its business into various types of delivery services increased investors’ confidence. During the same period, its peers Chipotle Mexican Grill (CMG), Shake Shack (SHAK), and Brinker International’s (EAT) share prices returned 4.3%, 9.7%, and 1.5%, respectively. The broader comparative index, the Guggenheim S&P 500 Pure Growth ETF (RPG), has 44% of its holdings invested in restaurants and travel companies. It rose by 17.4% during the same period.

Series overview

This pre-earnings series will explore what we can expect from Panera Bread’s 1Q16 earnings release. The series will cover analysts’ estimates for revenue, EBIT (earnings before interest and tax) margins, and earnings per share. To wrap up this series, we’ll look at the company’s valuation multiple and the expected stock price over the next 12 months.

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