Panera Bread Co. relative valuation is OVERVALUED and it has a fundamental analysis score of 72.
Our analysis is based on comparing Panera Bread Co. with the following peers – Starbucks Corporation, Chipotle Mexican Grill, Inc., Wendy’s Company, Jack in the Box Inc., Nathan’s Famous, Inc., Cosi, Inc. and Potbelly Corp. (SBUX-US, CMG-US, WEN-US, JACK-US, NATH-US, COSIQ-US and PBPB-US).
Panera Bread Co. has shown good performance overall, both over the last one year (at 50.39%) as well as over the last month (at 36.63%). Share price performance over the last month, though has been lower than that over the last year. But Panera Bread Co.’s stock has done better than its overall peer group whose performance was 3.89% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It currently trades at a Price/Book ratio of (22.84).
- PNRA-US outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
- PNRA-US‘s relative asset efficiency and net profit margins are both around the median level.
- Changes in annual revenues are in line with its chosen peers but lags in terms of earnings suggesting that the company is less cost conscious and may be spending for growth.
- PNRA-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- The company’s relatively low gross margin and median pre-tax margin suggest operations may be constrained on pricing versus peers.
- While PNRA-US‘s revenues growth has been around the peer median in recent years, the market seems to see faster growth ahead and gives its shares a higher than peer median P/E ratio.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- PNRA-US has the financial and operating capacity to borrow quickly.
- Our analysis rates Panera Bread Co. as OVERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
PNRA-US‘s share price performance of 50.39% over the last 12 months is above peer median of 12.28%. The 30-day trend in its share price performance of 36.63% is also above the peer median of 3.89% suggesting that this company is a leading performer relative to its peers.
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Panera Bread Co.’s price of USD 312.94 is greater than CapitalCube’s implied price of USD 230.98. At this level, CapitalCube believes that Panera Bread Co. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 185.69 and USD 313.41.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Panera Bread Co. engages in the operation of retail bakery cafes under the trade names of Panera Bread, Saint Louis Bread Co. and Paradise Bakery & CafÃ©. It operates through the following segments: Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. The Company Bakery-Cafe Operations segment offers fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, and salads, custom roasted coffees, and other complementary products through on-premise sales, as well as catering. The Franchise Operations segment is comprised of the operating activities of the franchise business unit which licenses qualified operators to conduct business under the Panera Bread or Paradise Bakery & Cafe names. The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, cream cheese and indirectly supplies proprietary sweet goods items through a contract manufacturing arrangement, to company-owned and franchise-operated bakery-cafes. The company was founded by Ronald M. Shaich and Louis I. Kane in March 1981 and is headquartered in Saint Louis, MO.
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