The 10-second takeaway
For the quarter ended June 26 (Q2), Panera Bread beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Panera Bread logged revenue of $530.6 million. The 20 analysts polled by S&P Capital IQ foresaw sales of $516.9 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $451.1 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 $1.50. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.43 per share. GAAP EPS of $1.50 for Q2 were 27% higher than the prior-year quarter's $1.18 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 36.2%, 110 basis points better than the prior-year quarter. Operating margin was 13.6%, 90 basis points better than the prior-year quarter. Net margin was 8.3%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $516.1 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is $5.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,301 members out of 1,445 rating the stock outperform, and 144 members rating it underperform. Among 428 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 399 give Panera Bread a green thumbs-up, and 29 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 $174.41.
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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. 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.