Reuters: Global Markets: Panera earnings, forecast top Street, shares rise

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Panera earnings, forecast top Street, shares rise Oct 23rd 2012, 21:02 Tue Oct 23, 2012 5:02pm EDT (Reuters) - Panera Bread Co (PNRA.O) reported better-than-expected quarterly earnings and issued profit forecasts above Wall Street's view, sending shares up almost 6 percent in extended trading. The results from Panera come a week after industry leaders McDonald's Corp (MCD.N) and Chipotle Mexican Grill Inc (CMG.N) turned in disappointing results and dragged down the restaurant sector. Chipotle and Panera both are known for reporting industry-leading growth in sales at established restaurants, but Chipotle had an edge because of its ability to hold down labor and other costs as it cranked out more sales from its units. Some high-profile investors say that advantage could be at risk if the popular burrito chain cannot raise prices to cover higher food costs, and if it loses market share to rivals such as Yum Brands Inc's (YUM.N) Taco Bell. Third-quarter net income at Panera, one of the top-performing U.S. restaurant chains, rose almost 27 percent to $36.5 million, or $1.24 per share - handily topping analysts' average estimate of $1.19 per share, according to Thomson Reuters I/B/E/S. Revenue grew 17 percent $529.4 million. Same-restaurant sales for both company and franchised Panera units were up 5.8 percent, better than the 5.1 percent increase analysts polled by Consensus Metrix expected. Panera also raised its fourth-quarter earnings target to $1.72 to $1.74 per share from its prior range of $1.66 to $1.70. Analysts' estimate was at $1.70 per share. The company set its 2013 earnings per share forecast at $6.85 to $7.00 per share. Analysts' average estimate was $6.91, according to Thomson Reuters I/B/E/S. Shares of Panera rose 5.5 percent to $169.15 in extended trading. The stock hit an all-time high of just over $175 in October. (Reporting by Lisa Baertlein in Los Angeles; editing by Matthew Lewis and Leslie Gevirtz) Link this Share this Digg this Email Reprints

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