Why Panera Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bakery-cafe operator Panera Bread has earned a respected four-star ranking.

With that in mind, let's take a closer look at Panera and see what CAPS investors are saying about the stock right now.

Panerafacts

Headquarters (Founded)

St. Louis (1981)

Market Cap

$4.7 billion

Industry

Restaurants

Trailing-12-Month Revenue

$2.1 billion

Management

Co-Founder/Chairman/Co-CEO Ronald Shaich
Co-CEO William Moreton

Return on Equity (Average, Past 3 Years)

21.5%

Cash/Debt

$289.9 million / $0

Competitors

Chipotle Mexican Grill
Einstein Noah Restaurant

Starbucks


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 1,516 members who have rated Panera believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, NHWeston, succinctly summed up the Panera bull case of our community:

Soup and sandwich -- how can you miss with variations of the basic lunch menu? They're growing at a [measured], [judicious] pace, expanding their bakery line [not getting exotic]. ... Good prospects.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Panera may not be your top choice.

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The article Why Panera Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Chipotle Mexican Grill, Panera Bread, and Starbucks and has options on Starbucks. Motley Fool newsletter services recommend Chipotle Mexican Grill, Panera Bread, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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