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Last Update: 24-Apr-13 07:44 ET
Panera Bread shares plunge 6% following miss on earnings
Panera Bread (PNRA $169.44 -11.00) reported first quarter earnings of $1.64 per share, $0.01 worse than the Capital IQ consensus of $1.65, while revenues rose 12.7% year/year to $561.8 million versus the $565.98 million consensus. The company issued in-line guidance for the second quarter with EPS of $1.74-1.78 versus the.$1.78 Capital IQ Consensus Estimate. The company reaffirmed guidance for FY13, sees EPS of $6.89-7.00 vs. $7.07 Capital IQ Consensus Estimate. PNRA reports Q1 company-owned comparable net bakery-cafe sales of 3.3% versus guidance of 4.0-5.0% versus 7.5% in Q1 of last year. PNRA reports Q1 margin improvement of 10 bps versus guidance of 25-75 bps improvement (Q1 2012 Operating Margin 13.5% versus 12.6% in Q1 of 2011) The Company-owned comparable net bakery-cafe sales increase of 3.3% in the first quarter fiscal 2013 was comprised of year-over-year average check growth of 5.7% and transaction decline of 2.4%.
Further, within the quarter, comparable net bakery-cafe sales at Company-owned bakery-cafes were up 5.4% in January, up 0.8% in February, and up 4.6% in March. This performance was adversely affected by severe weather throughout the United States in February and then severe weather in March that directly impacted the Midwest, including our St. Louis market, which we believe resulted in 100 to 150 basis points of unfavorable impact on the quarter overall. Q2 Guidance Details: The range for the Company's second quarter fiscal 2013 Company-owned comparable net bakery-cafe sales growth is targeted at 4.0% to 5.0% versus the comparable period in fiscal 2012. The Company announced today Company-owned comparable net bakery-cafe sales in the first 27 days of the second quarter fiscal 2013 were up approximately 5.0%. In the second quarter fiscal 2013, the Company anticipates its operating margin will be 25 to 75 basis points favorable on a year-over-year basis, primarily due to higher margins on fresh dough and other product sales to franchisees and improved leverage of general and administrative expenses. FY13 Guidance Details: The Company is lowering its target for Company-owned comparable net bakery-cafe sales growth for fiscal 2013 to 4.0% to 5.0% from its previous target of 4.5% to 5.5%, primarily due to lower than expected first quarter fiscal 2013 comparable net bakery-cafe sales growth, which was impacted by severe weather. For fiscal 2013, the Company is maintaining its previous target for operating margin of flat to 50 basis points favorable when compared to fiscal 2012.
Further, within the quarter, comparable net bakery-cafe sales at Company-owned bakery-cafes were up 5.4% in January, up 0.8% in February, and up 4.6% in March. This performance was adversely affected by severe weather throughout the United States in February and then severe weather in March that directly impacted the Midwest, including our St. Louis market, which we believe resulted in 100 to 150 basis points of unfavorable impact on the quarter overall. Q2 Guidance Details: The range for the Company's second quarter fiscal 2013 Company-owned comparable net bakery-cafe sales growth is targeted at 4.0% to 5.0% versus the comparable period in fiscal 2012. The Company announced today Company-owned comparable net bakery-cafe sales in the first 27 days of the second quarter fiscal 2013 were up approximately 5.0%. In the second quarter fiscal 2013, the Company anticipates its operating margin will be 25 to 75 basis points favorable on a year-over-year basis, primarily due to higher margins on fresh dough and other product sales to franchisees and improved leverage of general and administrative expenses. FY13 Guidance Details: The Company is lowering its target for Company-owned comparable net bakery-cafe sales growth for fiscal 2013 to 4.0% to 5.0% from its previous target of 4.5% to 5.5%, primarily due to lower than expected first quarter fiscal 2013 comparable net bakery-cafe sales growth, which was impacted by severe weather. For fiscal 2013, the Company is maintaining its previous target for operating margin of flat to 50 basis points favorable when compared to fiscal 2012.
