This Bread is Flat

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="150" div_align="right"]

• We bought this bakery on April 30 at $153.50 and we were fortunate to make money on it previously (+20%, exited Feb 2014).

• Now we have exited our half position at break-even because we are concerned that the combination of declining forecasted earnings and a high multiple could push the valuation lower. Panera is a solid company but we will look elsewhere for lower risk opportunities.

• New Purple Chips Valuation Range: Low $138.00, High $165.00

• EXIT PANERA BREAD AT $USD 152.50 (PNRA $152.26) HALF POSITION

• This trade delivered a TOTAL RETURN: -0.7%