Panera Bread 3Q Profit Climbs On Higher Prices

ST. LOUIS (AP) — Panera Bread Co. capitalized on consumers' appetites for low-cost meals in the third quarter, sending its profit and sales higher.

The casual restaurant chain's meals, sandwiches and snacks have appealed to consumers during the recession, as people tighten their spending by trading down from more upscale restaurants to cheaper fare. The company also raised its retail prices during the quarter, which helped boost average check amounts.

Panera said after the market closed Tuesday that it earned $18.9 million, or 61 cents per share, for the three months ended Sept. 29, up 38 percent from $13.7 million, or 45 cents per share, a year ago.

Sales rose 6 percent to $335 million from $315.2 million on strong bakery-cafe sales and improved fresh dough sales to franchisees. The company also made more money from franchise royalties and fees.

The performance beat the 58 cents-per-share forecast of analysts surveyed by Thomson Reuters. Analysts, whose estimates generally exclude one-time items, predicted revenue of $333.8 million.

Its shares rose $2.90, or 5.3 percent, to $58 in premarket trading Wednesday.