Restaurants Give Investors Indigestion

• Report this Comment On April 28, 2010, at 4:51 PM, Patbubblebuster wrote:

  Hello as a fan of Panera Bread and a weekly user,I would like to point out a couple of things.One some of their success has come at the expense of more service and higher priced restaurants,no tip needed at Panera Bread helps out also.however latly i noticed alot of customers staying longer using the free Wi-fi and buying small menu items while taking up table space.Many of these people are the unemployed and under-employed with aloy of time on their hands.It has gotten so bad that people sit in the parking lot and use the free Wi-fi and buy nothing.I feel that our economy is due for the second shoe to drop and places like the Panera Bread could suffer a summer slump.A few articles I have read recently point out people are spending money now because of the pent-up demand and the people born between 1980-1990 who make up a good deal of the slacker crowd and Panera Breads customers now spend money without any income.this can only go on so long and combined with a high P/E and too mant stores could spell doom for Panera bread if not doom bad times.

• Report this Comment On April 28, 2010, at 5:56 PM, kayakmastr wrote:

  Finally a BWLD appeared in my neighborhood. So check it out! I did and immediately sold my stock in BWLD. The diner across the street has better wings, better sauces, better service, and better ambiance. So unless you are a sports bar freak, there is no appeal. At least for this one example on Long Island.

• Report this Comment On May 06, 2010, at 1:35 PM, candisstock wrote:

  I am so conflicted about Panera. I am not conflicted at all about BWLD.

  BWLD is pretty nice for a one time shot. My 17 yo son loves the really spicy wings. But he likes to eat hot sauce. On bread. :( As a 57 year old suburban woman, BWLD doesn't do it for me. It's too loud, too noisy, and I can't carry on any kind of conversation. It's not a 'linger' restaurant for me.

  Now Panera on the other hand really rocks for me.

  The music is predictable (hmm, it's jazz....must be 3:30). The value is totally there for me as far as the quality of the food and the ambience. Of couse the unlimited coffee doesn't hurt one little bit.

  I bought PNRA when it was around 35. (Wheeee! I am an investment genius!............Today.)

  In my neighborhood, Panera has a very loyal crowd of people that keep coming. I know of one group that has met there every Friday for over 10 years for coffee and bagels.

  Panera is almost the Micky D's of the non-Micky D's set. Fast, inexpensive, reliable, good food.

  I think PNRA is going to just keep on going on for years and years. In fact, I wonder occassionally who would buy it.

  But here is why I am conflicted. What is it's short term outlook? Is it too high? Does it really matter about the short term outlook? It's hard to pass up a company with little or no debt that is doing quite respectably. The profit margin is actually going up! Pre-tax profit, sales, and EPS are going up.

  But with the current market (down 3 straight days) it's hard not to get worried.

  I would appreciate any comments or your thoughts about Panera.

  Thanks and have a profitable day.

  Candis

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