Friday, October 7, 2011

Buying Panera, stock that is...

Follow my logic...
  • The highest that Panera has traded was right about $125/share, back in June of this year.
  • It fell to right about $96/share nearly 2 months later on August 8.
  • Since that day, and pretty much since December of 2010 it has been right at $100 and above.

Stay with me...I have a point:

Let's analyze what I consider the mecca of all restaurant chains: Chipotle.
  • They closed at $294 today. They hit their max so far around $325/share just a couple of months ago on July 25.

  • That tells me that there is room for growth with PNRA.

If you exclude the financial crisis of 2008...once Chipotle hit $100/share, they did not look back and skyrocketed.

What about Google? Same thing. Once it hit $100/share, it never looked back.
Same thing for Apple.

Fact: Walmart, McDonalds, Coca Cola have never hit $100/share.

If you take into account the local knowledge that Covelli plans to expand to at least 30 locations, my logic tells me to buy Panera. Now. I am funding my Scottrade account, and I am going to buy some shares.

Random NOTES:
  • I am writing this blog about Panera stock on a Friday night. Perhaps I should re-evaluate my social life.
  • If you read all this, thank you...but you might want to re-evaluate your social life as well:)

1 comment:

Natalie said...

BTW...PNRA closed at 133.64 today. I did end up buying a measley 5 shares back a few weeks ago, right around 105/share. I think I may be right on this?