Moat Investor

Does Panera (PNRA) Still Have a Margin of Safety?

I’m big on Panera Bread Co. (PNRA). I think it’s a great company with a great niche and plenty of opportunity to grow. They have less than 5,000 stores in 38 states and the market for fresh, organic food is growing everyday. As a comparison, Starbucks has over 20,000 stores. Sure, Panera was hurt by winter storms, but that’s part of why they are such a bargain.

But what about their recent rise (no pun intended)? That is just an early indication of the market returning. You can expect more ups and downs, but as of this morning the stock was trading in the high $59.xx range. If you don’t have a piece of PNRA now while it climbs to $65 and beyond, you’ll regret it. I have my target Margin of Safety price in the $70s. That means that even if this great stock climbs to $70+ it will still only be worth half of what I think the future growth will be.