Panera Bread Co ($PNRA) Confident Investor Rating: Poor

Company name Panera Bread Co
Stock ticker PNRA
Live stock price [stckqut]PNRA[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Poor
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $187.71
Target stock price (averages with growth) $177.71
Target stock price (averages with no growth) $100.49
Target stock price (manual assumptions) $209.93

The following company description is from Google Finance: http://www.google.com/finance?q=pnra

Panera Bread Company (Panera) is a food service provider. Panera is a national bakery-cafe concept with 1,880 Company-owned and franchise-operated bakery-cafe locations in 45 states, the District of Columbia, and Ontario, Canada. The Company operates through three segments: Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. As of December 30, 2014, its Company bakery-cafe operations segment consisted of 925 Company-owned bakery-cafes and its franchise operations segment consisted of 955 franchise-operated bakery-cafes, located throughout the United States and in Ontario, Canada. As of December 30, 2014, its fresh dough and other product operations segment, which supplies fresh dough and other products daily to the Company-owned and franchise-operated bakery-cafes, consisted of 24 fresh dough facilities (22 Company-owned and two franchise-operated), located throughout the United States and one in Ontario, Canada.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Panera Bread Co. I will be removing it from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Panera Bread Co calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $201.92
  • Growth: 0.11
  • Current EPS (TTM): $6.08
  • P/E: 33
  • Future EPS Calc: $10.24
  • Future Stock Price Calc: $338.09
  • Target stock price: $209.92

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I hope that this makes you a Confident Investor.

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