Think of PaneraBread
Panera went public in 1999, and its stock has since rocketed from the low single digits to its current price around $58. Few if any other food-related stocks have performed so well. True, Cheesecake Factory
Panera's newly released third-quarter results suggest the company is still in its prime. Total revenue growth remains impressive, increasing 30.6% year over year. Its comparable-store sales were no slouch either, with 7.2% growth from company-owned units and 8.6% from franchise bakeries.
It's nice to see that Panera didn't sacrifice margins to gain this tremendous growth. The company's operating profit margin of 12.2% is consistent with its year-ago level. The combination of supercharged revenues and stable margins increased its earnings 32% to $0.37 per diluted share.
The company is definitely on fire, and it doesn't expect to cool its jets anytime soon. Panera decided to raise its fourth-quarter estimates, and it's now anticipating full-year earnings between $1.62 and $1.63 per share.
Its stock is currently trading at 35 times this year's earnings, which is far from a bargain. But if you're looking to get a cheap deal on a premium performer like the Spurs' Tim Duncan, good luck. To win championships, sometimes you have to pay up for top players.
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Fool contributor Jeremy MacNealy does not own shares of any companies mentioned.