The 10-second takeaway
For the quarter ended March 26 (Q1), Panera Bread met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Margins expanded across the board.
Panera Bread recorded revenue of $561.8 million. The 24 analysts polled by S&P Capital IQ hoped for a top line of $566.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $498.6 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 $1.59. The 27 earnings estimates compiled by S&P Capital IQ predicted $1.65 per share. Non-GAAP EPS of $1.59 for Q1 were 14% higher than the prior-year quarter's $1.40 per share. GAAP EPS of $1.64 for Q1 were 17% higher than the prior-year quarter's $1.40 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 35.2%, 20 basis points better than the prior-year quarter. Operating margin was 13.6%, 10 basis points better than the prior-year quarter. Net margin was 8.6%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $598.7 million. On the bottom line, the average EPS estimate is $1.78.
Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $7.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,405 members out of 1,557 rating the stock outperform, and 152 members rating it underperform. Among 470 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 442 give Panera Bread a green thumbs-up, and 28 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 $186.43.
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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.