The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Panera Bread met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Panera Bread notched revenue of $571.5 million. The 24 analysts polled by S&P Capital IQ looked for revenue of $574.3 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $495.8 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 $1.75. The 27 earnings estimates compiled by S&P Capital IQ anticipated $1.74 per share. GAAP EPS of $1.75 for Q4 were 34% higher than the prior-year quarter's $1.31 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 36.3%, 40 basis points better than the prior-year quarter. Operating margin was 14.6%, 200 basis points better than the prior-year quarter. Net margin was 9.0%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $567.4 million. On the bottom line, the average EPS estimate is $1.62.
Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $7.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,375 members out of 1,528 rating the stock outperform, and 153 members rating it underperform. Among 453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 424 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 $182.86.
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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 recommends Panera Bread. The Motley Fool owns 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.