Panera Bread earnings miss Wall Street estimates
Panera Bread missed Wall Street forecasts for the second quarter and cut its full-year outlook on declining sales growth at its company-owned cafes.
After the earnings announcement, the company's shares plummeted 6 percent in after-hours trading.
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Panera revised its target for fiscal 2013 earnings per diluted share to $6.75 to $6.85, citing lower than previously expected growth in company-owned same store sales. Company-owned same-store net sales were up 3.8 percent, while system-wide same store sales increased by 3.7 percent.
For the second quarter, the company posted earnings excluding items of $1.74 per share, up from $1.50 a share in the year-earlier period.
Revenue increased to $589 million from $531 million.
Analysts had expected the bakery-cafe company to report earnings excluding items of $1.77 a share on $596 million in revenue, according to a consensus estimate from Thomson Reuters.
The company reported an operating margin increase of approximately 60 basis points compared to a year earlier.
"This increase was driven primarily by lower general and administrative expenses as a percentage of total revenues and improved margins on fresh dough and other product sales to franchisees, which offset the decline in bakery-cafe margin," the company said in a statement.