Why the tepid forecast, Panera?
The stock is up Wednesday despite a few soft points in the restaurant chain's earnings report. Is the competition catching up?
While profits were up, same-store sales growth was up only 1.7 percent year over year, which was due more to the size of the checks than to volume, as traffic actually fell this quarter, something the company attributed to the particularly harsh winter this year.
Guidance for the full year ahead also came in a bit soft for the company, missing analysts' expectations, as CEO Ronald Shaich announced that Panera would be reinvesting in many of its stores this year.
In Wednesday's installment of Stock of the Day, Motley Fool Supernova analyst Simon Erickson discusses the future of Panera, and says that this will be somewhat of a "wait-and-see" moment for the company. He'll be looking ahead to March when the full reinvestment plan will be detailed, to see if this move will create long-term value.
So does that mean the stock is still a long-term buy, or should investors be holding off? Simon says he still sees Panera as a stock that he believes in as a long-term buy and hold. Despite the competition ramping up in the fast casual space, he thinks Panera can hold its own and deliver for shareholders in the years ahead.
The Motley Fool's 12 top stocks for 2014 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2014: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2014! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
These picks continue to gain amidst the seemingly insatiable demand for the nation's top hot drink.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.