Panera Bread Shares Trending Lower Following Earnings/Guidance

On Tuesday after hours, Panera Bread Co. PNRA announced third quarter 2014 financial results.

Panera reported EPS of $1.46 per share, beating estimates by 2.82 percent. Revenue for the quarter missed narrowly.

Highlights from the quarter:

• Q3 2014 Company-owned comparable net bakery-cafe sales up 2.1 percent.
• Q3 2014 Company-owned comparable net bakery-cafe transactions up 1.4 percent.
• In fiscal Q3 2014, the Company experienced a decline in operating margin of approximately 200 basis points compared to fiscal Q3 2013.

Despite beating estimates, the company cut fourth quarter and full year guidance due to higher than expected ingredient costs; such as the costs of initiating the rollout of structural enhancements, including Panera 2.0, operational integrity, delivery hubs and technological capabilities.

Shares of Panera Bread recently traded at $166 down 3 percent following earnings.