Panera Bread Company Inc. Stock Buy Recommendation Reiterated (PNRA)

NEW YORK ( TheStreet) -- Panera Bread Company (Nasdaq: PNRA) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • PNRA's revenue growth has slightly outpaced the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.67% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PNRA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PANERA BREAD CO has improved earnings per share by 17.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PANERA BREAD CO increased its bottom line by earning $5.89 versus $4.55 in the prior year. This year, the market expects an improvement in earnings ($7.05 versus $5.89).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income increased by 16.8% when compared to the same quarter one year prior, going from $41.18 million to $48.12 million.

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 has a market cap of $5.2 billion and is part of the services sector and leisure industry. The company has a P/E ratio of 30.00, above the S&P 500 P/E ratio of 18.00. Shares are up 17.1% year to date as of the close of trading on Friday.

You can view the full Panera Bread Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null