Investing.com -- Shares in PNRA surged more than 8% in after-hours trading, after the St. Louis-based restaurant chain reported moderate sales growth among both its comparable company-owned bakeries and franchise-owned cafes during its second quarter on Tuesday.
For the company's second quarter which ended in late-June, Panera said its sales among company-owned comparable bakeries-cafes spiked by 2.4%, while comparable sales at its franchise-owned bakeries-cafes increased by 1.1% on a year-over-year basis. Moving forward, Panera added that it is off to a strong start during its third quarter of 2015 as company-owned comparable sales have jumped by 4.7% for the first 27 days of the period.
"Our strategic plan to generate increased shareholder value by making Panera a better competitive alternative with expanded growth opportunities is making a difference. Leading indicators are showing just that," Panera Bread (NASDAQ:PNRA) CEO Ron Shaich said in a statement. "Comp-store sales growth increased sequentially every month in Q2 2015 and reached 4.7% for the first 27 days of Q3. Panera 2.0, inclusive of digital access and improved operations, is working. Innovation in food, marketing and store design are having a positive impact on Panera’s competitive position."
The company saw its shares jump in after-hours in spite of worse than expected earnings and revenues during the last quarter. Panera earned revenues of $677 million and reported of earnings of 1.60 per share, below analysts' forecasts of $679 million or 1.63 per share. The company's net profits fell from $49.2 million during the second quarter in 2014 to $41.9 million last quarter, as expenses jumped from $557 million to $608 million during the period.
Panera Bread said it opened 18 new bakery/cafes and 12 new franchise-owned restaurants over the quarter. The company also has plans to refranchise 50 to 150 company-owned cafes in the coming months, in an initiative that could dent its short-term earnings.
"In our history, sales have led and profits have followed, and we believe that will again be the case at Panera," Shaich added. "In fact, our leading indicators give us increased confidence in our strategic plan and in our potential to reignite significant earnings growth."
Shares in Panera Bread surged 15.01 or 8.03% to 202.00 in after-hours trading.