Buy Panera Bread on early delivery service success, Goldman says

Panera Bread restaurant
John Gress | Reuters

Investors should buy Panera Bread shares because the expansion of its delivery service will boost sales, according to Goldman Sachs, which upgraded the restaurant chain to buy from neutral.

"We are upgrading PNRA. ... We have growing confidence in delivery as a top-line driver and offset to increased competition in the fast casual space," analyst Karen Holthouse wrote in a note to clients Thursday. "We view [Panera's] valuation as increasingly compelling."