Taking a Bite of Panera Bread
Panera Bread Company owns, operates, and franchises 850 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.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'PNRA'" symbolprices="154" div_align="right"]
This high quality retail operator dropped to a low valuation after it released earnings that were below expectations. Assuming that the company can continue its long term trend of growing earnings, the shares are attractively valued and have a good chance of returning to the high end of the valuation range.
We recommend a full position (2.5%) for this non-dividend paying name
Purple Chips 12 -18 month target: $USD 188.00
LOW VALUATION IN PANERA BREAD AT $USD 154.00 (PNRA $154.50) HALF POSITION
PURPLE CHIPS TARGET: $188.00 POSITION SIZE: HALF (2.5%) P/E: 23.7X DIV: NIL MKT CAP: $4.5B Debt:Nil (Cash:$250M) RETURN ON CAPITAL: 35.5% EARNINGS YIELD: 6.5% 5 YR EPS Growth rate*:24.0% P/E/G Ratio: 1.0X EPS: $6.48 2014 EST.: $7.77/b> 2015 EST.: $9.16/b>
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
