Panera Bread Co. (PNRA) Consumer Discretionary – Hotels, Restaurants & Leisure | Reports April 26, After Market Closes
Panera Bread Co (PNRA) Q1 Earnings – Key Takeaways
- The Estimize consensus is calling for earnings per share of $1.51 on $676.91 million in revenue, 1 cent higher than Wall Street on the bottom line and $1.5 million above on the top
- Panera 2.0 has already been rolled out to 140 locations and is expected to enhance the customer experience while also controlling costs.
- Panera has been working hard to stay ahead of the curve in the rapidly growing fast casual space
- What are you expecting for PNRA? Get your estimate in here!
Panera Bread Company (PNRA), is scheduled to report first quarter earnings tomorrow, after the closing bell. Panera, along with Chipotle, is the face of the fast casual movement which is marked by consumer preference for high quality ingredients, convenience and affordability. The restaurant is riding a wave of success over the last few years during which key metrics have grown and shares which have risen 18.11% in the past 12 months. Last quarter, Panera’s large beat on the bottom line was primarily driven by a 3.6% increase in comparable store sales. Early indications suggest first quarter earnings should continue to rise. In the first 41 days of the quarter, Panera reported a 6.4% increase in company owned comparable sales.
The Estimize consensus is calling for earnings per share of $1.51 on $676.91 million in revenue, 1 cent higher than Wall Street on the bottom line and $1.5 million above on the top. Since its last report, EPS estimates have increased 6 cents with revenue up $10 million. Current estimates call for a 7% climb in profitability on a 4% increase in revenue YoY.
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A large portion of enthusiasm surrounding Panera comes from its transition to Panera 2.0, a technology based platform expected to enhance store efficiency. Last quarter Panera converted 114 of its company owned stores to the new platform, bringing the total up to 410. 2.0 is not only expected to benefit consumers but also improve internal cost controls through improved flow and minimal overhead.
Delivery is also a growth area that Panera has begun to develop. The company has indicated that they will roll out deliver services in 10% of its locations in the near future. At the beggining, delivery services will put pressure on margins, but over time will benefit the bottom-line.
On the downside, Panera must deal with increased labor costs. As wages continue to increase, earnings will naturally take a hit. Once all stores have converted to Panera 2.0, most labor related headwinds should be weathered.
Do you think PNRA can beat estimates? There is still time to get your estimate in here!