What happens when your stock is at an all-time high, earnings are good, and your Chief Financial Officer announces that he is leaving the company? Just ask Panera Bread Company (NASDAQ: PNRA). The growth sandwich and bread franchise reported $1.42 EPS for its fourth quarter for 17% earnings growth. Thomson Reuters had estimates of $1.42 EPS and $499.05 million in revenues. Company owned stores saw sales up 5.9% in the quarter.
For the first quarter, Panera is targeting $1.33 to $1.35 EPS for gains of 22% to 24% from a year earlier. Thomson Reuters has estimates of $1.28 EPS. For Fiscal 2012, Panera is raising its target to $5.50 to $5.55 EPS for growth of 18% to 19% over 2011. Thomson Reuters has estimates of $5.51 EPS.
The company noted that the acquisition of its Raleigh-Durham franchise market for $48 million is expected to close by end of this current quarter.
The good news is that the CFO is not leaving for any suspicious reason. Panera noted that Chief Financial Officer Jeff Kip is leaving the company on March 15 to join IAC/InterActiveCorp (NASDAQ: IACI) as its Executive Vice President and Chief Financial Officer.
What is so interesting here is that the stock was already at an all-time high today. The earnings did not look like a blowout and the restaurant chain is very expensive for its growth. At the top of the guidance, Panera trades at almost 29-times the expected 2012 earnings. Shares are down around the $155.95 level in the after-hours. Frankly, this could have been worse after the stock was at a high.
JON C. OGG
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