Panera Bread Company Inc. (PNRA): Today's Featured Leisure Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Panera Bread Company ( PNRA) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Panera Bread Company fell $1.84 (-1.1%) to $168.75 on light volume. Throughout the day, 294,177 shares of Panera Bread Company exchanged hands as compared to its average daily volume of 470,400 shares. The stock ranged in price between $168.45-$172.51 after having opened the day at $170.47 as compared to the previous trading day's close of $170.59. Other companies within the Leisure industry that declined today were: Del Frisco's Restaurant Group ( DFRG), down 5.1%, Good Times Restaurants ( GTIM), down 3.9%, Pizza Inn Holdings ( PZZI), down 2.9%, and PokerTek ( PTEK), down 2.7%.
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Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Panera Bread Company has a market cap of $4.78 billion and is part of the services sector. The company has a P/E ratio of 32, below the average leisure industry P/E ratio of 32.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 20.6% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Panera Bread Company a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Panera Bread Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Country Style Cooking Restaurant Chain ( CCSC), up 8%, Sonic Corporation ( SONC), up 7%, Red Lion Hotels Corporation ( RLH), up 4.3%, and Home Inns & Hotels Management ( HMIN), up 3.8%, were all gainers within the leisure industry with Melco Crown Entertainment ( MPEL) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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