Buy Panera Bread on expansion of delivery service, Trump's tax cuts, Oppenheimer says

A customer exits a Panera Bread Co. location in New York, U.S.
Scott Eells | Bloomberg | Getty Images

Investors should buy shares of Panera Bread due to strong potential profit growth next year and Donald Trump's tax reform plan, according to Oppenheimer, which upgraded the restaurant chain to outperform from perform.

"PNRA's favorable earnings setup into '18 can no longer be ignored and its sales drivers (digital and delivery) are the most actionable in the group," analyst Brian Bittner wrote in a note to clients Wednesday. "Strategic investments will keep '17 earnings growth constrained. ... Profit accretion from delivery and '2.0' investments will magnify while sales payoffs continue to ramp."