PNRA was one of the
few bright spots in
an absolutely
hideous session... a
tiny point of green
on a blood-red tape.
Last night, the
restaurant chain
reported a
better-than-expected
quarter. That's
somewhat
unbelievable itself,
right? Beating the
Street's consensus
earnings estimate by
two cents. PNRA's
comparitive store
sales grew by 3%...
Again, somewhat
amazing. And margins
came in around 15%.
Both higher than
expected.
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Wednesday,
October 22, 2008
(Cont'd from
above)...
Look, we've liked
this stock for a
long time. It's a
horrible market. Can
we find something
that, when the
market gets better,
will start making us
a lot of money...
and won't lose a lot
right now?...
I want to know if
PNRA can keep up
with what we just
talked about, or if
this is the last
good quarter for a
while...
Back on July 23rd,
I recommended this
as a play on lower
gas prices, causing
more people to go
out and eat... and
on lower grain
prices, reducing
PNRA's input costs.
Alright, the
market's been bad,
the stock's down
13.6% from where I
highlighted it, but
the cost savings are
happening. The
company expects
wheat prices to come
in at $12 a bushel
for the 4th quarter,
down from $15 a
bushel in the last
quarter... And all
of its wheat
requirements for
2009 are locked in
at $9.50.
I say hallelujah,
man... Another
company that saw
prices going down.
PNRA has the price
controls, but can it
keep its customers?
On the conference
call, they pointed
out that traffic
fell by 3%, compared
to a 5-10% fall off
in the industry. So
does that make PNRA
worth owning, or is
it simply the best
house in a bad
neighborhood?...
Can PNRA still
deliver as we head
into a severe
recession?...
We need to do more
homework, which is
why I'm thrilled to
bring back on a mad
who understands the
game, Ronald Shaich,
the chairman and CEO
of PNRA.
Mr. Shaich, welcome
back to Mad Money...
Jim's comments
AFTER the interview:
Guys listen... No
one's delivered
other than
McDonald's
(MCD*)
and Panera Bread Co.
(PNRA).
You want the good,
solid dividend and
good growth... Jim
Skinner and
McDonald's... You
want a little great
growth, something
fast, that is going
to win... when the
smoke clears... it
is winning now...
And, by the way...
yeah... I eat there.
I love it!
