Bakery cafe chain Panera Bread Co has reported a twenty-eight percent surge in third-quarter profits and raised its full-year forecast.
Missouri, USA-based Panera reported net income of $36.52 million ($1.24 a share), up from $28.85 million during the corresponding period last year. Revenue increased by 17% to $529.3 million and the firm reported solid net sales gains in both its company-owned cafes (6.2%) and franchised outlets (5.5%).
The results exceeded the expectations of a poll of analysts who were expecting earnings of $1.19 a share on revenue of $522.45 million.
Operating margin was up about 80 basis points to 11.3% as the firm recorded improved bakery-cafe margins from sales leverage. However, margin growth was partially offset by lower margins for fresh dough and product sales to franchisees.
“These strong results are reflective of the continued investments we are making in the quality of our food, marketing, and operations, which we believe are resulting in a better and differentiated customer experience," said Bill Moreton, Panera’s co-chief executive.
"Building on our long-term strategy to drive competitive advantage, we are going to step up our level of investment to provide greater access for our customers, increase our operational capabilities, and improve our core enterprise systems in 2013,” added Ron Shaich, Panera’s chair and co-chief executive.
Panera opened 17 new bakery-cafes in the quarter and 19 franchised stores. The company had 1,625 outlets across the US.
“We believe these initiatives, along with many other initiatives that are underway, will position Panera for even greater success well into the future,” Shaich said.
