Panera Falls After Missing Q2 Estimates; Slashes Full-Year Outlook

released its fiscal second-quarter earnings results after the closing bell on Tuesday. The St. Louis-based restaurant chain reported both earnings per share and revenue that came in below Wall Street expectations. Panera also cut its full-year earnings outlook and provided third-quarter EPS guidance that is below current consensus. In late trade, the shares were last down around 6 percent to $170.92.

Ron Shaich, Chairman and Co-CEO, commented, "In the second quarter of 2013, we delivered within the range of our diluted EPS guidance. Our two-year comparable same store sales growth for the quarter was strong at 10.9% and our new unit sales remain on track for another record year, reaffirming how strongly our brand resonates with consumers. However, our one-year comparable same store sales growth of 3.8% was below our expectations." Shaich added, "While results in the next few quarters may be choppy as we invest in both sales-building initiatives and operational capabilities, we believe that our efforts will ultimately enable us to deliver an enhanced customer experience, grow sales and expand earnings."

Panera reported net income of $51 million or $1.74 per share, compared to $44 million or $1.50 per share, in last year's corresponding period. This missed Wall Street consensus EPS estimates of $1.77. Revenue in the quarter was up 11 percent to $589.01 million versus $530.59 million a year ago. This also came up short of consensus sales estimates of $596.02 million.

Looking ahead to the fiscal third-quarter, Panera guided for EPS of $1.32 to $1.36. This is below current consensus EPS estimates of $1.46. For the fiscal fourth-quarter, the company sees EPS of $2.05 to $2.11. For the full-year 2013, Panera lowered its projected earnings per share range to between $6.75 and $6.85. Previously, the company had guided for EPS of $6.89 to $7.01 for the fiscal year. This is below analysts' current consensus EPS estimates of $7.05 for the full-year.