Panera Bread Q3 Results Miss Estimates; Cuts Q4, FY14 Earnings Outlook

(RTTNews) - Panera Bread Co. (PNRA) reported net income for the third quarter of $39.2 million or $1.46 per share, compared to $42.8 million or $1.48 per share for the year-ago quarter.

The third quarter 2014 results include favorable tax adjustments of $2.3 million or $0.08 per share, while the year-ago quarter results included the impact of favorable tax adjustments of $3.8 million or $0.13 per share.

Total revenue for the third quarter rose 8% to $619.89 million from $572.48 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $1.42 per share on revenue of $620.39 million for the third quarter. Analysts' estimates typically exclude special items.

The company lowered its fourth quarter earnings per share guidance to a range of $1.77 to $1.87 from its prior guidance of $1.89 to $1.98, due to higher than expected ingredient costs, mainly butter and dairy, and the costs of initiating the rollout of structural enhancements, including Panera 2.0, operational integrity, delivery hubs and technological capabilities.

The company also lowered its fiscal 2014 earnings per share outlook to a range of $6.60 to $6.70 from its prior outlook of $6.65 to $6.80 per share.

Analysts currently expect the company to earn $1.93 per share for the fourth quarter and $6.70 per share for the full year 2014.