On Tuesday, Panera Bread Co, decreased its earnings forecast for the whole year as it is working to make its services faster at the popular bakery cafe units that it owns.
The company shares, which limited its earnings-per-share forecast for 2014 from 6.65 dollars to 6.80 dollars and has now its range in between 6.60 dollars to 6.70 dollars. It went down 2.9 percent, reaching 165.98 dollars in the extended trading.
Panera, based in St. Louis, mentioned that it is expecting the operating margins for 2014 to go down 200 until 225 basis points, compared to the previous year, because of increased costs for their ingredients, like butter, as well as other various dairy products, plus project investments that are trying to achieve the customer service speed up.
The net income for the third quarter fell over eight percent, reaching 39.2 million dollars, which is equivalent to 1.46 dollars for every share.
Based on reports coming from Consensus Metrix, the company-owned bakery cafe sales open around 18 months increase 2.1 percent during the most recent quarter of this year, a bit better compared to the 1.7 percent rise expected by analysts. The said gain was mainly because of the traffic increase.