Bernstein Speaks Out On Possible Panera Bread (PNRA) Acquisition

Bernstein analyst, Sara Senatore, sees potential acquirers fall in 2 classes: strategic investors, QSR or JAB, and other restaurants such as SBUX or MCD. However, the analyst thinks a private strategic acquirer like JAB is more likely as a strategy to consolidate a category with emphasis on cost/synergies due to the company's high AUVs and growth multiple.

JAB has a history of rolling up coffee and bakery chains such as Keurig or Einstein Bakery and its willingness to pay a premium would be consistent with a PNRA acquisition. QSR is unlikely due to the recent acquisition of PLKI.

The analyst also thinks McDonald's or Starbucks is less compelling since there is less strategic value in acquiring a relatively large, non-core asset for each company with both having already invested significantly in proprietary tech.

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