Cramer Thinks Panera Bread (PNRA) Is Still A Good Buy
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Last night on Mad Money, Jim Cramer had on Panera Bread's (Nasdaq: PNRA) CEO Ron Shaich to talk about how it is doing and Panera's prospects in this tough economy. Cramer likes that Panera Bread beat earnings estimates and comp store sales.
The Panera CEO said that the looming recession is actually a good thing for Panera and it has been preparing for a recession for over a year now.
In this environment, Cramer likes that Panera has a strong cash position and no debt.
Regarding buybacks, Ron Shaich said that Panera is not planning a stock buyback program and instead has chosen to allocate the monies toward expanding its operations.
One thing to note, Mr. Cramer last recommended Panera on July 23rd on the notion that Panera's raw materials have fallen. Panera has fallen over 15% since that time, but Jim thinks there is even more value here as Panera's margins have increased even more. Also, the CEO noted that in a recessionary environment customers may choose Panera over an expensive steak restaurant.
Panera Bread Company is committed to providing great tasting, quality food that people can trust.
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The Panera CEO said that the looming recession is actually a good thing for Panera and it has been preparing for a recession for over a year now.
In this environment, Cramer likes that Panera has a strong cash position and no debt.
Regarding buybacks, Ron Shaich said that Panera is not planning a stock buyback program and instead has chosen to allocate the monies toward expanding its operations.
One thing to note, Mr. Cramer last recommended Panera on July 23rd on the notion that Panera's raw materials have fallen. Panera has fallen over 15% since that time, but Jim thinks there is even more value here as Panera's margins have increased even more. Also, the CEO noted that in a recessionary environment customers may choose Panera over an expensive steak restaurant.
Panera Bread Company is committed to providing great tasting, quality food that people can trust.
Subscribe to EasyStockAlerts.com & Get real-time e-mail alerts when news hits your stocks!
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