The Rise and Fall 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="155" div_align="right"]
This is a fine example of how the Purple Chips works, in periods of high volatility our objective approach helps to identify extreme valuation levels.
We sold Panera in February for a $31 per share profit and we are buying a half position again today at $153.50. We believe that Panera is a fundamentally solid operator with a healthy balance sheet.
We recommend a half position (2.5%) for this non-dividend paying name
Purple Chips 12 -18 month target: $USD 183.00
LOW VALUATION IN PANERA BREAD UNDER $USD 155.00 (PNRA $153.50) HALF POSITION
PURPLE CHIPS TARGET: $183.00 POSITION SIZE: HALF (2.5%) P/E: 23.0X DIV: NIL MKT CAP: $4.5B Debt: $120M RETURN ON CAPITAL: 47.1% EARNINGS YIELD: 7.7% 5 YR EPS Growth rate*:23.0% P/E/G Ratio: 1.0X EPS: $6.68 2014 EST.: $7.92 2015 EST.: $9.32
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
