Panera Retraces Losses, Looks to Close Green
Shares of Panera Bread (NASDAQ: PNRA) gapped lower at the open on Tuesday after Starbucks (NASDAQ: SBUX) announced its acquisition of Bay Bread LLC and its La Boulange Bakery brand. Some investors clearly took the news as a potential negative development for Panera, apparently thinking that SBUX could make inroads into their market. Panera opened the trading session at $136.97 versus a close of just above $140.00 on Monday.
The stock has been rising, however, throughout Tuesday's trading day and was last up 0.35% to $140.71. The buyers of the stock are likely doing so on the thesis that a $100 million acquisition by Starbucks is not very threatening to Panera, which has a market cap of over $4 billion and is a top operator in the casual dining segment.
Starbucks shares were last trading down 2.57% to $52.50 on Tuesday as some analysts have questioned the wisdom of the acquisition. Also, SBUX surged into the close yesterday as traders speculated about the previously disclosed announcement from the company.
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