Panera 3rd-Q profit, sales up; no EPS growth expected in 4th Q

RICHMOND HEIGHTS, MO. -- Panera Bread Co. reported a 10-percent jump in third-quarter net income to $11.9 million, on a 33-percent jump in revenue to $273.2 million, compared with year-ago results. Margin pressure, however, led the company to predict flat year-to-year growth in profit for the current fourth quarter. The chain's margins were squeezed by higher food costs and more sales from salads, which were less profitable than sandwiches or soups, the company said.

The margin crunch, paired with nearly flat comparable-restaurant sales throughout October, led Panera to project earnings between 53 cents and 59 cents per share for the fourth quarter, versus year-ago earnings of 59 cents per share including a one-time charge, or 62 cents excluding that charge. Panera's system totals 1,168 bakery-cafes.

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