Panera Trades Higher, P.F. Chang Lower, on Q3 Guidance

Panera Bread traded to the upside Wednesday following news it narrowed its Q3 EPS guidance to $0.35 to $0.37, compared to $0.32 to $0.38 previously, ahead of analyst estimates of $0.34. P.F. Chang's China Bistro, meanwhile, traded lower after saying it now expects Q3 EPS of $0.05 to $0.07, versus its earlier forecast of $0.25. Analysts had also been expecting EPS of $0.25. P.F. Chang attributed its reduced outlook to unanticipated higher costs related to labor, restaurant maintenance and supplies and a fire in the Nashville Bistro. Same store sales during Q3 (ended Sept.) fell 1.6% at the Bistro and declined by 1.0% to 1.9% sequentially. Panera Bread said revenues increased 35% to $276 million. Bakery-cafe comparable sales rose 0.8% in Sept. and 2.6% during the quarter. Panera is scheduled to report Q3 earnings on Oct. 23 and P.F. Chang on Oct. 24. Shares of Panera Bread climbed 8.0% to $46.57 on Wednesday, while P.F. Chang's China Bistro lost 2.8% to $29.41.

Sources: Press release I, II, MarketWatch, Reuters
Commentary: Panera Bread Is Tasty At Current Prices • Expecting Panera Bread To Rebound Soon • P.F. Chang’s: Same-Store Trends Decline in Q2, But Diners May Get Cravings
Stocks/ETFs to watch: PNRA, PFCB

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