The pain seems far from over for Panera
According to Panera, fourth-quarter revenue increased 29% to $301 million, but same-store sales rose only 1.7% for the quarter. In the month of December, same-store sales inched upward by 1.2%; the company said it lost between one and 1.2 percentage points in expected additional growth because of extreme weather in its core markets. The last time I checked, Panera's stock had dropped precipitously on today's news.
Like many eateries and retailers, including rival Starbucks
Panera will report its complete fourth-quarter results on Feb. 13. Last quarter, the company said it expected its fourth-quarter earnings to come in flat year over year. If investors aren't salivating right now, it's hardly surprising. The current macro environment remains challenging, and ultimately, Panera won't be palatable to investors until it proves it can consistently grow revenue and profits at a decent clip.
Cut yourself a slice of further Foolishness:
- Activist investors are poking at Panera.
- Last quarter, it was bread and water for the cafe operator.
- David Meier chimed in on why Panera's crusty and stale last summer.
Panera is a Motley Fool Hidden Gems Pay Dirt recommendation. Home Depot is a Motley Fool Inside Value pick. Starbucks is a Motley Fool Stock Advisor selection. Check out any of our market-beating newsletter services free for 30 days.