(Adds CEO comment, industry background, updates share move)
July 23 Panera Bread Co reported
quarterly profit that missed analysts' views and cut its
full-year forecast after sales growth at company-owned
bakery-cafes fell short of expectations, sending shares tumbling
more than 5 percent in after-hours trade.
Panera is one of the restaurant industry's top-performing
names and when it delivers results that miss or just match Wall
Street's targets, investors punish its stock.
The popular salad and sandwich chain now has the enviable
problem of figuring out how to serve customers more quickly
during busy meal times. Chipotle Mexican Grill and
Starbucks Corp are grappling with similar issues.
In order to operate consistently at the "very high sales
volumes" generated by Panera's shops, "we must improve our peak
hour throughput," co-Chief Executive Ron Shaich said in a
statement on Tuesday.
Panera's second-quarter sales at company-owned restaurants
open at least 18 months were up 3.8 percent, less than analysts'
estimates for a 4.5 percent rise, according to Consensus Metrix.
The St. Louis-based company also said those restaurant sales
were up about 2.1 percent for the first 27 days of the current
Based on those trends, Panera lowered its 2013 earnings per
shares forecast to a range of $6.75 to $6.85. That implies
year-over-year earnings growth of 15 to 16 percent, versus its
prior forecast for growth of 17 to 19 percent.
Net income grew almost 16 percent to $51 million, or $1.74
per share, in the second quarter that ended June 25 - missing
analysts' average forecast by 3 cents per share, according to
Thomson Reuters I/B/E/S.
Shares of Panera were down 5.3 percent at $172.40 in
extended trading on Tuesday.
(Reporting by Lisa Baertlein in Los Angeles; editing by Matthew