Courtesy of Benzinga.
Panera Bread (NASDAQ: PNRA) shares spiked in Tuesday’s after-hours after the company’s second-quarter’s bottom line exceeded Wall Street’s expectations.
Yet the company offered a third-quarter and full-year outlook below analysts forecasts, citing lower growth in the average check as well as higher-than-expected costs.
CEO Ron Shaich said although the average check declined 0.03 percent in the second quarter because of product mix, “we expect this will remain only a shorter-term drag.”
Same-store second-quarter sales were unchanged from a year earlier, although excluding a shift in the Easter holiday to the second quarter, same-store sales grew an estimated 0.5 percent.
The operating margin narrowed — for at least the second quarter in a row by 250 basis points — once again on higher food and marketing expense as well as higher investments on operations.
Panera forecast third-quarter income of $1.40 to $1.46 per share and cut its 2014 outlook to $6.65 to $6.80 per share, from $6.80 to $7 per share,
Wall Street expects third-quarter earnings of $1.53 and full-year earnings of $6.86 per share.
In the recent quarter, net income fell four percent to $49.2 million, or $1.82 per share, from $51 million, or $1.74 a year earlier.
Revenue grew 11 percent from $589 million to $631 million.
Wall Street expected earnings of $1.74, on revenue of $639.5 million.
Panera traded recently at $148.00, up 0.94 percent.
Posted-In: Earnings News Guidance After-Hours Center