Wednesday, November 7, 2012

Blog #4: Accounting

             Panera Bread is growing quickly and increasing its profit swiftly and more fiercely every quarter. In fact, according to a recent Wall Street Journal, Panera has not reported a decline in profit since the beginning of 2008 (Rubin). This is exceptional because this is when the recession started and many other companies saw an extreme decrease in profit. CBS reported that the Dow Jones U.S. Restaurants and Bars index dropped 13 percent (CBS News). Despite its competitors though, Panera continued with growth through the recession; even still now, coming out of the recession,  their revenue continues to increase past expectation “The restaurant chain’s total revenue escalated 17% year over year to $529.3 million in the third quarter and beat the Zacks Consensus Estimate $522.0 million” (Yahoo Finance). Their EPS has increased with third quarter 2012 report showing a $1.24 value in earnings per share, when the estimate was $1.19.
              However, this restaurant is not the only one who has had success within the industry. McDonald’s and Darden Restaurants also saw some growth during the recession. McDonald’s had a 5 percent increase in shares while Darden Restaurants rose 1 percent (CBS News). This is a small increase but considering the impact the recession had on many restaurants, that is an accomplishment.  In recent days though, Starbucks just reported an 11 percent increase in their fourth quarter EPS with an expected revenue growth between 10-13 percent (Standard and Poor). These are restaurants who have partaken in good news along with Panera Bread, and I also feel that these restaurants are the leaders among the restaurant industry.  

Work Cited

CBS News. (2009, February 11). Recession took a bite of restaurant sales. Retrieved from http://www.cbsnews.com/2100-500395_162-4693779.html

Rubin, B. (2012, October 23). Panera bread 3rd quarter net up 27% on stronger same store sales. Wall Street Journal. Retrieved from  http://online.wsj.com/article/BT-CO-20121023-714934.html?mod=WSJ_qtnews_wsjlatest

Standard and Poor. (2012). Marketmovers,starbucks corpor **** up 4. Retrieved from http://www.netadvantage.standardandpoors.com.proxyau.wrlc.org/NASApp/NetAdvantage/cp/companyIndustryNews.do

Yahoo Finance. (2012, October 24). Panera tops, ups view. Retrieved from http://finance.yahoo.com/news/panera-tops-ups-view-122917469.html;_ylt=A2KJ3CaRBptQ_QsANQSTmYlQ



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3 comments:

  1. UnknownNovember 18, 2012 at 10:25 AM

    I am very surprised to read that restaurants such as Panera Bread and McDonalds experienced growth during the recession. I believe that these statistics display what sets restaurants apart from others. The ability to alter your business based on economic and social change is a very important and definitely helps distinguish the leaders of the industry.

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  2. AnonymousNovember 19, 2012 at 4:41 AM

    Like Jenna, I was also surprised to see the that these restaurants grew during the recession. What was most interesting to me though, was the actual difference between Panera's growth and the rest. Do you feel that this growth will continue as we leave the recession behind, or will other restaurants be able to 'catch up'?

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