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 0.2%. By the end of trading, Panera Bread Company fell $2.02 (-1.1%) to $179.15 on average volume. Throughout the day, 560,818 shares of Panera Bread Company exchanged hands as compared to its average daily volume of 627,300 shares. The stock ranged in price between $178.55-$181.17 after having opened the day at $181.06 as compared to the previous trading day's close of $181.17. Other companies within the Leisure industry that declined today were: Jamba ( JMBA), down 4.1%, Dover Downs Gaming & Entertainment ( DDE), down 3.4%, Orbitz Worldwide ( OWW), down 2.9% and Canterbury Park Holding Corporation ( CPHC), down 2.8%.
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Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. The company operates three business segments: Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. Panera Bread Company has a market cap of $5.1 billion and is part of the services sector. The company has a P/E ratio of 30.5, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Friday.

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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Six Flags Entertainment ( SIX), down 8.2%, Chanticleer Holdings ( HOTR), down 6.1%, PokerTek ( PTEK), down 6.0% and Cosi ( COSI), down 5.7% , were all gainers within the leisure industry with Expedia ( EXPE) 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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