Panera Bread Shares Drop On Downbeat Results

Shares of Panera Bread Co PNRA slipped over 3 percent in after-hours trading after the company reported weaker-than-expected results for the first quarter. The St. Louis, Missouri-based company posted a quarterly profit of $31.9 million, or $1.20 per share, versus a year-ago profit of $42.4 million, or $1.55 per share. Excluding one-time items, the company earned $1.41 per share. Its sales climbed to $648.5 million, compared to $605.3 million in the year-earlier quarter. However, analysts were expecting a profit of $.144 per share on revenue of $658.6 million. Comparable sales at company-owned bakery cafes climbed 1.5 percent in the first quarter, while company-owned comparable net bakery-cafe sales rose 2 percent for the first 27 days of the second quarter. During the quarter, Panera Bread opened 11 new bakery-cafes, while its franchisees opened 14 new bakery-cafes. During the first quarter, Panera Bread repurchased 155,401 shares for an aggregate purchase price of around $25.0 million. The average estimate among 32 Estimize users was for earnings of $1.49 per share and revenue of $661.39 million. Ron Shaich, Chairman and CEO, commented, "In the first quarter, we continued to make progress on our initiatives to make Panera a better competitive alternative with expanded growth opportunities. These initiatives include improving the guest experience through Panera 2.0 (inclusive of digital access and improved operational capabilities) and driving consumer excitement through innovation in food, marketing and store design. We are also building capabilities to grow in adjacent businesses, including catering, delivery and consumer products. As expected, these investments negatively impacted first-quarter results; however, our confidence is growing that by making these investments, we can increase the potential to reignite significant earnings growth for years to come." Panera reiterated its adjusted EPS outlook for the full year. It expected company-owned comparable net bakery- cafe sales to increase 2 percent to 3.5 percent. Panera shares fell 3.01 percent to $179.99 in the after-hours trading session.