Panera Bread Beats; Issues Upside Guidance (PNRA)

Panera Bread Co. PNRA reports Q2 earnings of $0.85 versus estimates of $0.84. Panera Bread Co. reports Q2 revenues of $378.1 million versus estimates of $375.90 million. Revenues rose 14.3% year over year. The company said they see Q4 EPS of $1.11 to $1.13 versus the Street estimate of $1.08. The company decreased Q3 guidance; it now sees Q3 EPS at $0.71 to $0.73 versus the Street estimate of $0.75. FY2010 guidance was increased; the company now sees EPS of $3.50 to $3.52 versus the Street estimate of $3.49 Comp store sales are expected to be positive by 5-6% during Q3. Chief Executive Officer Bill Moreton commented, "I am pleased to report another strong quarter with our earnings per share growing 31% over the prior year. This comes on top of the 25% EPS growth on a year-over-year basis in the second quarter of 2009. Our strategy of investing in the quality of our customers' experience to drive differentiation and competitive advantage continues to pay dividends.” He added, “Additionally, we have increased our investments in marketing, operations and product development, which we believe will contribute to our medium and longer term success. As a result, we believe we will continue to be able to drive shareholder value and are targeting a long-term growth rate of 15% to 20% annually for the next 3 to 5 years." Shares are trading lower in the after-hours.