Most importantly, Panera expects commodity inflation to cool down as the year progresses. We find Panera's second-quarter earnings and revenue beat, raise in full-year guidance for two consecutive quarters, the expectation of continued margin improvement and pricing power quite encouraging.
A more stable traffic growth compared to its restaurant peers also raises optimism. Hence, we upgrade our recommendation from Neutral to Outperform.
PANERA BREAD CO (PNRA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.