Panera Bread Co Inc
How to Buy Upcoming Panera Bread Stock and Whether You Should
Understanding Starbucks’ cost structure and operating expenses
Starbucks’ main cost driver is its price per pound of coffee beans. The two most consumed coffee beans are Arabica and Robusta blends.
Why Chipotle Has A Lot Of Room For Unit Growth
Unit growth isn’t the only factor that drives revenue. A restaurant can keep adding more restaurants. Eventually, it can capture newer markets. This is what Chipotle is doing.
What Could Drive Starbucks’s Same-Store Sales Growth in 2016?
Over the past four quarters, Starbucks’s same-store sales growth has increased due to growth in ticket and traffic.
Valuation Multiples of Key Restaurant Players
Where are some of the major restaurant companies such as Starbucks, Chipotle, Panera, and Yum! Brands trading from a valuation standpoint? Over the past month, US markets have experienced high volatility.
What Is the Outlook for Shake Shack in 2016?
A New York–based fine casual restaurant chain, Shake Shack (SHAK) announced its 4Q15 results on March 7, 2016. SHAK reported an overall revenue of $51.1 million and earnings per share of $0.08.
Should Investors Worry about Panera’s High Valuation?
In this part, we’ll look at how the company’s valuation PE (price-to-earnings multiple) affects Panera’s stock price.
Why Yum! Brands Is Expected To Report Lower EBITDA
Wall Street analysts’ estimated EBITDA for the fourth quarter is $633 million—compared to $918 million in the same quarter last year.
DA Davidson Rates Flowers Foods as ‘Neutral’
Flowers Foods (FLO) has a market cap of $3.1 billion. It rose 0.74% to close at $14.97 per share on October 5, 2016.
Chipotle Delivers: It Brings Back Carnitas
On September 28, Chipotle’s management announced that it was able to resume serving carnitas in 90% of Chipotle’s restaurants.
Is Starbucks’s Enterprise Multiple Trading High?
Starbucks’s current EV (enterprise value) to EBITDA multiple stands at 17x, which is close to the company’s historical high point of 17.6x and similar to its PE.
Why Analysts Dropped Their Estimates for Shake Shack’s Earnings
Currently, analysts are expecting Shake Shack (SHAK) to post EBIT margins of 12.6%, 9.6%, 8.8%, and 13.3% in 3Q16, 4Q16, 1Q17, and 2Q17, respectively.
Why high valuation and coffee prices drove Starbucks down ~13%
As store count grew over the past few years, Starbucks’ forward P/E valuation metric also expanded. What used to be just 17x gradually grew to roughly 27x, a 58% based solely on expansion in the valuations.
Analyzing Shake Shack’s Fine-Casual Concept
Shake Shack is conceptualized as a “new fine-casual” restaurant format. The fine-casual restaurant is a hybrid of the fine dining and fast-casual dining formats.
Has Chipotle’s Stock Price Bottomed Out?
After posting better 1Q17 earnings on April 25, Chipotle’s stock price rose to $496.14 by May 16, 2017. Since then, it has experienced downward momentum.
Flowers Foods Declares Dividend of $0.16 per Share
Flowers Foods (FLO) has a market cap of $3.2 billion. Its stock rose by 0.46% to close at $15.23 per share on August 19, 2016.
Stephens Reduces Flowers Foods’ Price Target to $14 per Share
Flowers Foods (FLO) has a market cap of $3.1 billion. It fell by 0.67% to close at $14.85 per share on August 12, 2016.
An Investor’s Guide to Chipotle and Its Customers
Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.
Key Financial Highlights from Chipotle’s 2Q15 Earnings
After Chipotle reported its 2Q15 earnings on July 21, its shares rose 2.2%, or $14.37, at $687 in the after-hours trading session.
Will Starbucks’ Growing Valuation Multiple Start to Fall?
Starbucks’ (SBUX) PE valuation multiple has been growing since October 2014, when the company hit a low point of 23x.
How Did Flowers Foods Perform in Fiscal 2Q16?
Flowers Foods (FLO) has a market cap of $3.3 billion. It fell by 9.0% to close at $16.15 per share on August 10, 2016.
Starbucks revenues: Why customers are willing to pay a premium
Starbucks’ revenue mix is weighted in favor of beverages. This should come as no shock, considering the firm’s roots trace back to a single coffee shop at Pike’s Place Market in Seattle.
Why Low Corn Prices Are Good for Restaurants
About 38% of corn produced is used as animal feed in the United States. Naturally, a drop in the price of corn will have an impact on meat prices as well.
Must-know: Chipotle Mexican Grill’s 3 key risks
Chipotle Mexican Grill (CMG) is exposed to three primary risks: price risk, interest rate risk, and currency risk.
How Is Dunkin’ Donuts Doing in Same-Store Sales Growth?
Overall same-store sales growth for Dunkin’ Donuts has been declining. The company had negative same-store sales growth in 2008 and 2009.
What to Expect for Yum! Brands’s Same-Store Sales Growth
Yum! Brands reported 1Q14 same-store sales growth of 3%, compared with 4% year-over-year. Sequentially, same-store sales growth improved from -2%.
Shake Shack’s Long Lines Meant Profits in 2Q15
The star of Shake Shack’s (SHAK) second-quarter performance was same-store sales growth, which grew 12.9% compared to 4.5% a year ago.
Domino’s iPad App Produces High Ticket, Conversion
Domino’s initiatives include introducing specialty chicken to the menu in the second quarter of 2014. Specialty chicken is ordered as a side.
How Might 1Q16 Results Affect Chipotle’s PE Multiple?
In this article, we’ll use the PE (price-to-earnings) ratio due to its high visibility in Chipotle’s (CMG) earnings.
Shares up for McDonald’s stock on rumors of Ackman’s interest
Ackman’s fund owned a stake in McDonald’s from 2005 to 2007. He urged McDonald’s to restructure itself. McDonald’s stock almost doubled during that time.
Why Panera Bread’s net profit margins declined
Panera’s general and administrative costs for the quarter were $35 million, which increased 19% from $29 million compared to the corresponding quarter last year.
Why Noodles and Company has short and long-term goals
Noodles & Company (or NDLS) has a few initiatives and tactics to drive short-term traffic. It also drives longer-term brand and customer loyalty building.
Why it’s important to understand Noodles and Co.
Noodles & Company (or NDLS) was founded in 1995. It’s a fast-casual restaurant chain that serves classic noodle and pasta dishes.
Why Chipotle’s labor, occupancy, and other costs are important
Chipotle Mexican Grill (CMG) reported $230 million in labor costs, $59 million in occupancy costs, and $111 million in other operating costs in 3Q14.
Why Chipotle Mexican Grill’s quarterly same-store sales spiked
Chipotle Mexican Grill’s (CMG) same-store sales increased by 17.3% year-over-year in the second quarter. The increase in same-store sales also resulted in average sales per restaurant of $2.3 million.
Must-know overview: Panera Bread Company’s 2Q14 earnings
In this quarterly overview of Panera Bread Company, we’ll take a deeper look at the earnings and strategic changes that management discussed during the earnings call. This will help you understand the company and make an investment decision.
Why a soft restaurant performance index is negative for sales
Investors can interpret the decline in the index for July as a somewhat negative indicator for companies like McDonald’s Corp. (MCD).
How Chipotle’s Valuation Multiple Compares with Its Peers
On July 13, 2017, Chipotle’s forward PE multiple was 39.1x compared to 50.7x before the announcement of its 1Q17 earnings.
How Does Chipotle’s Valuation Multiple Compare to Peers?
For this analysis, we have considered the forward PE (price-to-earnings) multiple due to high visibility in Chipotle Mexican Grill’s (CMG) earnings.
Strong 1Q17 Earnings Boost Shake Shack’s Valuation Multiple
As of May 5, 2017, Shake Shack was trading at a forward EV-to-sales ratio of 3.4x, as compared to 3.1x before the announcement of its 1Q17 earnings.
Dunkin’ Donuts: Same-Store Sales Growth Lower Than Estimates
In 1Q17, SSSG for Dunkin’ Donuts, which operates under the umbrella of Dunkin’ Brands (DNKN), was flat in the United States.
Will Shake Shack’s 1Q17 Earnings Boost Its Stock Price?
New York–based fine-casual restaurant Shake Shack (SHAK) is all set to announce its 1Q17 earnings on May 4, 2017.
Strong 1Q17 Performance Drove Chipotle’s Valuation Multiple
Before the announcement of Chipotle’s 1Q17 earnings, analysts expected EPS (earnings per share) of $8.93 for the company over the next four quarters.
How Panera’s Valuation Compares to Peers
On April 5, 2017, JAB Holdings had offered to buy Panera Bread for $7.5 billion.
Chipotle’s Valuation Multiple Rose on Investor Optimism
As of April 13, 2017, Chipotle was trading at a PE multiple of 50.9x compared to 47.2x before its 4Q16 earnings announcement.
Why Panera’s Valuation Multiple Rose after JAB’s Offer
As of April 5, 2017, Panera was trading at a forward PE multiple of 38.8x—compared to 32.6x before the acquisition rumor started to surface on April 3.
Recommendations for Panera: Why Analysts Favor a ‘Buy’
Of the 28 analysts covering Panera (PNRA), 71.4% have given it a “buy” recommendation, and 28.6% have given it a “hold.”
Panera 2.0 Continues to Boost Same-Store Sales Growth in 4Q16
Same-store sales growth Same-store sales growth (or SSSG), expressed as a percentage, is a measure of the rise in revenue from a company’s existing restaurants over a certain period of time. SSSG is driven by ticket size and traffic. 4Q16 performance Panera Bread (PNRA) posted systemwide SSSG of 0.7%, with company-operated restaurants posting SSSG of […]
KeyBanc Capital Markets Upgrades Flowers Foods to ‘Overweight’
Flowers Foods (FLO) reported fiscal 3Q16 sales of $918.8 million, a year-over-year rise of 3.8% over $885.3 million in fiscal 3Q15.
Pivotal Research Upgrades Flowers Foods to ‘Hold’
Flowers Foods (FLO) has a market cap of $4.0 billion. It rose 13.3% to close at $19.30 per share on December 9, 2016.
How Did Flowers Foods Perform in 3Q16?
Price movement Flowers Foods (FLO) has a market cap of $3.3 billion. It rose 1.4% to close at $15.87 per share on November 9, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 4.1%, 5.5%, and -26.2%, respectively, on the same day. FLO is trading 3.4% above its 20-day moving average, 4.4% […]
Can 3Q16 Results Boost SHAK’s Valuation Multiple?
Since the announcement of its 2Q16 results on August 10, 2016, Shake Shack (SHAK) EV-to-sales multiple has fallen from 5.1x to 3.7x.
Weak 3Q16 Earnings Lowered Chipotle’s Valuation Multiples
Analysts expect Chipotle to post EPS growth of 146% in the next four quarters. Its current share price might have factored in the growth rate.
How Chipotle’s Valuation Multiple Compares with Peers’
Valuation multiple Investors should look at valuation multiples when deciding whether to buy or sell a stock. Valuation multiples are driven by perceived growth, risk and uncertainties, and investors’ willingness to pay for a stock. Analysts use various multiples to evaluate a stock. In this article, we’ll use the PE (price-to-earnings) ratio due to its […]
Panera Needs Its 3Q Earnings to Be in Line with Higher Guidance
Panera Bread (PNRA), a fast-casual restaurant chain, is set to announce its 3Q16 earnings after the market closes on October 25, 2016.
How Chipotle Plans to Expand Its Business
Current operations By the end of 2Q16, Chipotle Mexican Grill (CMG) operated 2,078 Chipotle restaurants in the United States, 14 in Canada, seven in England, five in France, and one in Germany. Also, the company operates 15 ShopHouse Southeast Asian Kitchen restaurants and four Pizzeria Locale restaurants. 3Q16 estimates In 3Q16, Wall Street analysts are expecting […]
Chorizo Is Now Available at All Chipotle Restaurants
On October 3, 2016, Chipotle Mexican Grill (CMG) announced that chorizo would be available in all its US restaurants as of October 4, 2016.
How Chipotle’s Valuation Multiples Compare to Its Peers
For the next four quarters, analysts expect Chipotle to post EPS of $7.9—YoY growth of 11.9%. The current share price might have factored in the EPS growth.
Will Europe Be Key to Chipotle Stemming Its Falling Revenue?
Since the E. coli outbreak in October 2015, Chipotle Mexican Grill’s (CMG) same-store sales growth has been falling. This led to negative revenue growth.
What Are Analysts’ Recommendations for Panera Bread?
Despite the recent fall in Panera’s share prices, analysts are still maintaining their price target of $238.2 for the next year—a return potential of 18.5%.
Analyzing Panera Bread’s Valuation Multiples
Lower revenue and EPS estimates made investors skeptical about investing in Panera. As of September 19, it was trading at 28.1x—down from 30.9x on July 28.
Can 2Q16 Results Drive Shake Shack’s Valuation Multiple Up?
Since its listing in January 2015, Shake Shack’s EV-to-sales ratio has been 4.6x–18.3x. Investor euphoria about its growth prospects has boosted the stock.
What Analysts Are Expecting from Chipotle’s 2Q16 Earnings
In last four quarters, Chipotle has beaten analysts’ estimates three times. Usually, when the company beats analysts’ estimates, the share price rises.
Will Chipotle’s EBIT Margins Expand in 2Q16?
Despite owning all of its restaurants, Chipotle Mexican Grill (CMG) enjoyed higher margins than its peers until 3Q15 due to its superior business model.
Chipotle: Will Rebuilding Efforts Help Same-Store Sales in Q2?
Chipotle Mexican Grill (CMG) undertook many marketing and promotional campaigns along with its enhanced food safety measures.
What Do Analysts Expect from Chipotle’s Revenue in 2Q16?
Revenue sources By the end of 1Q16, Chipotle Mexican Grill (CMG) owned and operated all of its 2,066 restaurants. In 2Q16, analysts are expecting the company to register revenue of $1.05 billion, a decline of 12.1% from $1.2 billion in 1Q15. Factors affecting Chipotle’s revenue Although Chipotle’s management had undertaken several measures to counter the […]
Flowers Foods Made Changes in Its Management
Flowers Foods fell by 1.8% to close at $18.55 per share on July 7. The stock’s weekly, monthly, and YTD price movements were 0.32%, 0.32%, and -12.2%.
Exploring The Cheesecake Factory’s Other Brands
The Cheesecake Factory (CAKE) created the Grand Lux Cafe brand at the request of Venetian Resort Hotel Casino in Las Vegas in 1999.
Why Fast Casual Restaurants’ Share Prices Have Struggled Recently
Throughout this series, we’ll take a look at seven fast casual restaurants in order to aid the investment decision-making process.
Word on the Street: What Analysts Think about SHAK after 1Q16
SHAK’s better-than-expected 1Q16 results led analysts to increase their consensus median price target for the next 12 months from $40.4 to $41.3.
Why Strong 1Q16 Results Failed to Raise SHAK’s Valuation Multiple
Since its listing in January 2015, Shake Shack’s (SHAK) enterprise value-to-sales multiple has been trading at 4.7x–18.5x.
What Factors Led to SHAK’s 1Q16 Earnings Margin Expansion?
In 1Q16, SHAK posted earnings before interest, tax, depreciation, and amortization of $7.8 million, which indicated an EBITDA margin of 14.4%.
SHAK Raises Its Restaurant Development Guidance for 2016
Now that we’ve discussed Shake Shack’s (SHAK) same-store sales growth, it’s time to discuss another key revenue driver for SHAK: unit growth.
Chick’n Shack Drove SHAK’s Same-Store Sales Growth in 1Q16
On the back of its 11.7% same-store sales growth (or SSSG) in 1Q15, Shake Shack (SHAK) posted SSSG of 9.9% in 1Q16.
What Really Drove Shake Shack’s Revenue in 1Q16?
In 1Q16, Shake Shack saw a 43.3% rise in revenue over $37.8 million in 1Q15, driven by unit growth and same-store sales growth.
Shake Shack’s Share Price Rises by 9% on Strong 1Q16 Results
Shake Shack reported its 1Q16 earnings on May 12, 2016. SHAK reported 1Q16 revenue of $54.2 million and adjusted earnings per share of $0.08.
Analysts Lowered Their Estimates after Chipotle’s 1Q16 Results
Chipotle’s same-store sales growth in 1Q16 was -29.7%. This compelled analysts to lower their estimates for the next four quarters.
How Is Panera Bread Expanding Its Business?
From the beginning of 2Q15 to the end of 1Q16, Panera Bread (PNRA) increased its unit count by 96, of which 25 units were added in 1Q16.
Sales Deleverage Caused Chipotle’s 1Q16 EBIT Margins to Fall
Chipotle Mexican Grill (CMG) posted EBIT of -$46.6 million. It represented EBIT margins of -5.6%—compared to 18.5% in 1Q15.
Will Panera Bread’s PE Ratio Continue to Rise?
Since the beginning of 2016, Panera Bread’s PE ratio has been trading at 29.4x–32.9x. As of April 17, 2016, it was trading at 30.9x.
Will the E. Coli Outbreak Affect Chipotle’s 1Q16 Revenue?
Since the outbreak of E. coli in October 2015, Chipotle’s same-store sales growth has been declining. Customers were skeptical about the quality of food being served.
How Is Domino’s Pizza Planning to Expand Its Business?
By the end of fiscal 2015, Domino’s Pizza (DPZ) was operating 12,534 restaurants, with 7,303 internationally and 5,204 in the United States.
What Contributed to Domino’s Pizza’s Revenue Expansion in 4Q15?
In 4Q15, Domino’s Pizza (DPZ) recorded an overall revenue growth of $98.2 million from its 4Q14 revenues of $643 million.
What Drove Panera Bread’s 4Q15 Revenues?
Panera Bread (PNRA) earns its revenues from three sources: revenue from company-operated restaurants, royalty and franchise fees collected from franchisees, and fresh dough operations.
How Will Jack in the Box’s Qdoba Perform in 1Q16?
The Qdoba Mexican Eats management has set 1Q16 guidance for company-operated restaurants at 0% to 2% while the analysts expect it to be around 1.3%.
Company-Owned Restaurants Dominate Qdoba’s Unit Growth
When Qdoba Mexican Eats, then called Qdoba Mexican Grill, was acquired by Jack in the Box in 2003, the brand had 85 restaurants across 16 states.
Qdoba Mexican Eats’ Same-Store Sales Growth in 2015
From 2011 to 2013, the same-store sales growth of Qdoba Mexican Eats outperformed the same-store sales growth of franchisee-owned restaurants.
Understanding Qdoba Mexican Eats’ Franchisee Model
Since Jack in the Box’s acquisition of brand Qdoba Mexican Grill, now named Qdoba Mexican Eats, the brand has grown from a mere 85 restaurants to 661.
Same-Store Sales and Unit Growth Impact a Restaurant’s Top Line
The two most important drivers of a restaurant’s top line are same-store sales and unit growth. The same-store sales growth is represented as a percentage.
Low Inflation Could Play a Role in the Restaurant Industry
The most current reading of inflation is the PCEPI (Personal Consumption Expenditure Price Index). It includes price changes in food and energy. It was 0.21%.
Why Unemployment Rate Matters to Restaurants
While the latest unemployment rate indicates that the US economy is healthy, it’s important to remember that the labor force participation fell over time.
Will Shake Shack See an Upward Trend?
Shake Shack has been rising over the past few days and is currently trading around $45.7. Its share price hit a low of $39.9 in November.
Is Shake Shack’s Rising Guidance Telling Us Something?
In 3Q15, Shake Shack’s management raised its guidance to 14 new restaurant openings in the domestic market in 2016.
Flowers Foods Reports Mixed Results for 3Q15
Flowers Foods has a market cap of $5.6 billion. Flowers Foods’ year-to-date price movement has been rising quarter-over-quarter in 2015.
Will Chipotle Report Low Same-Store Sales Growth in 3Q15?
Chipotle (CMG) experienced tremendous same-store sales growth in 2014, with most of its quarters reporting a double-digit growth.
Comp: How Quickly Are Fast Casual Restaurants Adding Units?
Almost all of the fast casual restaurants have double-digit unit growth with the trailing 12-month median unit growth rate as of 2Q15 at 12%.
Why the Federal Funds Rate Matters to Restaurant Investors
A low federal funds rate makes it cheaper for banks to borrow funds from other banks. This is passed on to consumers when they borrow from their banks.
Comp: Average Revenue per Square Foot of Fast Casual Restaurants
Average revenue per square foot gives us insight into how efficiently a company is able to generate sales. Naturally, the higher the number, the better.
Comp: Why Some Fast Casual Restaurants Saw Higher Traffic Growth
Noodles (NDLS) and Chipotle (CMG) had the worst traffic growth during the quarter.
Which Restaurant Stocks Are More Sensitive to China?
Companies that have exposure to China are more sensitive to the recent slowdown. The fall in the stock market could dampen consumers’ sentiment in China.