Panera Bread Co (PNRA): Is This Stock Baked?

Starbucks Corporation (NASDAQ:SBUX) is another high-quality operation, with emerging market expansion, organic growth, inorganic growth through acquisitions, menu diversification, and top-notch management. One of the company’s most recent moves was to ink a deal with Danone so it can sell Greek yogurt under a line titled, “Evolution Fresh”. This might seem like a minor move, but once again, Starbucks is ahead of the curve. According to Nielsen, Greek yogurt’s market share has grown from 3.8% in 2010 to 29% in 2012.

Starbucks Corporation (NASDAQ:SBUX) owns a stellar balance sheet, which means it will continue to open new locations and acquire brands. It’s payout ratio of 38% is low, so its dividend of around 1%, should remain intact and even expand.

Conclusion

Panera Bread Co (NASDAQ:PNRA), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Starbucks Corporation (NASDAQ:SBUX) are all high-quality companies that are likely to enjoy long-term success. However, Panera’s stock is currently in a free-fall. When this condition exists, you will be able to get it at a better entry point. If you’re interested in investing in Panera, then consider waiting until the selling is exhausted, often indicated by a flat stock price over a significant period of time.

Chipotle Mexican Grill, Inc. (NYSE:CMG) is a high-growth company, but expectations are high, which makes it a risky play. If you’re looking for the safest long-term play without sacrificing growth potential, then Starbucks Corporation (NASDAQ:SBUX) might be the best option.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill, Panera Bread, and Starbucks. The Motley Fool owns shares of Chipotle Mexican Grill, Panera Bread, and Starbucks.

The article Is This Stock Baked? originally appeared on Fool.com.

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