Samuel
Tue, Oct-18-05, 14:51
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/18/AR2005101800736.html
Bread is back.
By JIM SALTER
The Associated Press
Tuesday, October 18, 2005; 12:41 PM
ST. LOUIS -- Bread is back. Citing stronger-than-expected sales for the third quarter, Panera Bread Co. on Tuesday raised its earnings forecast for the period ended Oct. 4. Earnings will be released Nov. 1.
The suburban St. Louis-based operator of more than 800 Panera Bread Co. and St. Louis Bread Co. bakery-cafes in 35 states now expects earnings of 36 cents to 37 cents per share. Previous guidance called for earnings of 34 cents to 35 cents per share. Panera earned 28 cents per share in the third quarter of 2004.
The company reaffirmed its previous fourth-quarter earnings target of 46 cents to 47 cents per share.
Analysts surveyed by Thomson Financial are expecting profits of 35 cents per share in the third quarter and 47 cents per share in the fourth quarter.
Panera shares climbed $3.77, or 7.1 percent, to $57.15 in midday trading on the Nasdaq stock market. The 52-week range was $34.12 to $66.49.
Panera's quarterly sales increased 30.6 percent to $148.6 million from $113.8 million a year earlier. Sales at bakery-cafes open at least a year _ or same-store sales _ increased 8.2 percent for the quarter, and are up 7.9 percent for the year.
Chief Financial Officer Mark Hood cited three reasons for the growth: Introduction of an antibiotic-free chicken sandwich and salad; the rise of Panera's catering business; and price increases.
Another factor, but a lesser one, according to Hood, is the decline of the low-carb diet craze.
In the heyday of Atkins and other diets in 2004, "It slowed our growth rate," Hood said. "With that resistance out of the way, maybe it's helped a little bit. But I think the other things are bigger factors."
Last year, Panera began offering a line of low-carb breads and bagels. Only a few remain, and those are not big-sellers, officials said.
Bread is back.
By JIM SALTER
The Associated Press
Tuesday, October 18, 2005; 12:41 PM
ST. LOUIS -- Bread is back. Citing stronger-than-expected sales for the third quarter, Panera Bread Co. on Tuesday raised its earnings forecast for the period ended Oct. 4. Earnings will be released Nov. 1.
The suburban St. Louis-based operator of more than 800 Panera Bread Co. and St. Louis Bread Co. bakery-cafes in 35 states now expects earnings of 36 cents to 37 cents per share. Previous guidance called for earnings of 34 cents to 35 cents per share. Panera earned 28 cents per share in the third quarter of 2004.
The company reaffirmed its previous fourth-quarter earnings target of 46 cents to 47 cents per share.
Analysts surveyed by Thomson Financial are expecting profits of 35 cents per share in the third quarter and 47 cents per share in the fourth quarter.
Panera shares climbed $3.77, or 7.1 percent, to $57.15 in midday trading on the Nasdaq stock market. The 52-week range was $34.12 to $66.49.
Panera's quarterly sales increased 30.6 percent to $148.6 million from $113.8 million a year earlier. Sales at bakery-cafes open at least a year _ or same-store sales _ increased 8.2 percent for the quarter, and are up 7.9 percent for the year.
Chief Financial Officer Mark Hood cited three reasons for the growth: Introduction of an antibiotic-free chicken sandwich and salad; the rise of Panera's catering business; and price increases.
Another factor, but a lesser one, according to Hood, is the decline of the low-carb diet craze.
In the heyday of Atkins and other diets in 2004, "It slowed our growth rate," Hood said. "With that resistance out of the way, maybe it's helped a little bit. But I think the other things are bigger factors."
Last year, Panera began offering a line of low-carb breads and bagels. Only a few remain, and those are not big-sellers, officials said.