Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bakery-cafe operator Panera Bread (NASDAQ:PNRA) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Panera's business and see what CAPS investors are saying about the stock right now.

Panera facts

Headquarters (founded)

Richmond Heights, Missouri (1981)

Market Cap

$1.47 billion



TTM Revenue

$1.24 billion


Co-Founder/CEO Ronald Shaich
CFO Jeff Kip

Net Income Growth (average, last five years and TTM)

17.7% and 2%


Darden Restaurants (NYSE:DRI)
McDonald's (NYSE:MCD)

CAPS members bearish on PNRA also bearish on

General Motors (NYSE:GM)
Toll Brothers (NYSE:TOL)

CAPS members bullish on PNRA also bullish on

Buffalo Wild Wings (NASDAQ:BWLD)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 55 of the 219 All-Star members who have rated Panera -- some 25% -- believe the stock will underperform the S&P 500 going forward. These bears include huddaman and minnjim1, both of whom are ranked in the top 15% of our community.

In late November, huddaman wrote that Panera "is not so cheap for average American, with unemployment rate so high, I bet it's going to experience two things: 1) Shrinking sales and profits, 2) Shrinking valuations."

In a pitch from two days ago, minnjim cites a significant disconnect between Panera and its stock as reason to stay away:

Wow, see Alyce Lomax's column on 1/28/09, where she points out that [Panera] has surged 30% in a year when its store traffic actually declined and most of its increased revenue was due to menu price increases. Add to that a P/E of 25 and 30% of [Panera] shares shorted, and I see a declining price ahead.

What do you think about Panera, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Starbucks is an Inside Value and a Stock Advisor selection. Buffalo Wild Wings is a recommendation of Motley Fool Hidden Gems. Google is a pick of Rule Breakers. The Fool owns shares of both Starbucks and Buffalo Wild Wings. The Fool's disclosure policy always gets a perfect score.