Panera Bread Co (PNRA), Yum! Brands, Inc. (YUM), Burger King Worldwide Inc (BKW): A Stock That Is Worthy of Your Time and Portfolio

While the company was able to minimize cost in production (packaging, wages and rent), which helped it to boost its profitability thereby beating EPS estimates, the lackluster performance in the area of revenue was mostly impacted by the company’s shift from its business model. Although this transformation is for the better since it will help the company to create a brand for itself against the store operations it has been known for.

Conclusion

Apart from the fact that Panera Bread Co (NASDAQ:PNRA) was able to growth its sales and net income at a faster pace than its average peers in the industry for second quarter, it also maintains positive free cash flow and strong liquidity. This means that the company will be able to handle any financial needs that might arise in the near future. With the recent drop in the company’s share price, this is a good time to buy.

As for Yum! Brands, Inc. (NYSE:YUM), with the drop in sales and net income, the company underperformed in second quarter compared to its peers. Apart from this, the company’s liquidity is extremely weak, which usually points to deteriorating cash flow. Even in the face of all this, with the slump it is facing right now, I think it is the right time to step in and buy shares of this company as it has growth potentials. With the continued roll out of creative breakfast items including the Waffle Taco, it is continually grabbing a fair share in the specialty eateries marketplace.

Burger King Worldwide Inc (NYSE:BKW) has been able to increase its profitability with the recent franchise model it is using. This means better tidings for investors. The company makes a good buy while it is working towards creating a brand name for itself, but then again, it is trading at a premium. If you already own this stock, I would suggest you hold onto it to see where the trend is going.

Naomi Warmate-Igwe has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide (NYSE:BKW) and Panera Bread. The Motley Fool owns shares of Panera Bread.

The article A Stock That Is Worthy of Your Time and Portfolio originally appeared on Fool.com.

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