The 10-second takeaway
For the quarter ended March 27 (Q1), Panera Bread met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Panera Bread reported revenue of $498.6 million. The 18 analysts polled by S&P Capital IQ predicted revenue of $500.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $422.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.40. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.35 per share. GAAP EPS of $1.40 for Q1 were 28% higher than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.0%, 20 basis points better than the prior-year quarter. Operating margin was 13.5%, 90 basis points better than the prior-year quarter. Net margin was 8.3%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $516.5 million. On the bottom line, the average EPS estimate is $1.42.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $5.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,277 members out of 1,421 rating the stock outperform, and 144 members rating it underperform. Among 454 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 429 give Panera Bread a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Panera Bread is outperform, with an average price target of $164.89.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Panera Bread. Motley Fool newsletter services have recommended buying shares of Panera Bread. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.