Panera (PNRA) Likely to Guide Below Consensus, But Sees SSS Momentum Through 2016 - Wells Fargo

Wells Fargo analyst, Jeff Farmer, symbolically raised Panera (NASDAQ: PNRA) earnings by a penny to $6.09 from $6.08 for FY15 as same store sales trends have improved over the quarter. However, he also expects guidance for the coming year to come in below street consensus. Despite this expected negative data point, he raised his valuation range to $210-220 from $200-210 to reflect transition to 2017E EBITDA. No change to Outperform rating.

The analyst expects investors to focus on: (1) Q4 and Q1-to-date SSS, (2) introduction of 2016 EPS and SSS guidance, (3) the last detailed, semi-annual Panera 2.0 update, and (4) commentary on the wave of current SSS initiatives (“Food as it should be” marketing campaign, leverage of MyPanera Loyalty ranks, catering/delivery, and Café Health operations focus).

Despite PNRA’s elevated relative valuation and limited 2016 EPS growth visibility, the analyst believes that shares will track the company’s improving SSS (same-store sales) trends. PNRA is scheduled to report Q4 earnings on 2/9 (AMC).

For an analyst ratings summary and ratings history on Panera Bread click here. For more ratings news on Panera Bread click here.

Shares of Panera Bread closed at $191.53 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Uber Inc. (UBER) PT Raised to $96 at Tigress Financial Partners
• Synovus Financial (SNV) PT Lowered to $42 at Piper Sandler