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1 Incredible Company Warren Buffett Could Love

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Today, contributors Chris Bledsoe and Austin Smith look at one stock Warren Buffett could love: Panera Bread. The company has had an enviable earnings growth rate over the past seven years, a very strong balance sheet, and a relatively large proportion of inside ownership. But for all there is to love, there are risks as well. For one thing, the company trades for a rich earnings multiple compared with many of its peers.

The company is, however, firing on all cylinders at this point, so its recent performance would seem to justify the premium multiple. More so than other companies, Panera has also been able to pass on price increases, which bodes well for investors today.

If you love this industry but don't like the premium multiples that Panera comes with, learn about 3 American Companies Set to Dominate the World. Two of them are world-class operators in this space, trading for much cheaper multiples. Click here to get your free copy before it's gone.

Austin Smith owns shares of McDonald's. Chris Bledsoe has no positions in the stocks mentioned above. The Motley Fool owns shares of Chipotle Mexican Grill, McDonald's, Panera Bread, and Starbucks and has options on Starbucks. Motley Fool newsletter services recommend Chipotle Mexican Grill, McDonald's, Panera Bread, Starbucks, and Yum! Brands. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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10/28/2016 2:00 PM
CMG $370.68 Up +2.09 +0.57%
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