Panera Cuts Guidance

The bakery chain warns of soft sales.
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Panera (PNRA) guided lower for the second quarter, citing a soft May sales performance that was hit by rising gasoline prices.

The St. Louis-based bakery cafe chain said it expects to make 38 cents to 40 cents a share for the quarter ending this month, well below the 49-cent Thomson Financial analyst consensus estimate. The company said May sales in stores open at least 18 months rose just 1.2% from a year ago, forcing it to cut its second-quarter systemwide comparable bakery-cafe sales growth target to a range of 1.5% to 2.5% from the previous 3.5% to 4.5%.

Panera also warned of "margin pressures based on a mix shift away from products self-manufactured in its fresh dough facilities and gasoline and other input costs."