Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: sun-tzu who wrote (139506)	12/20/2001 9:55:17 AM
From: reaper	Read Replies (1) \| Respond to of 436258

Sun -- I don't know if I'd call Panera a "fundamentally sound" short. Panera is actually a really good business, and is probably THE single hottest thing going in franchising right now. The economic returns on the units are simply fantastic, and the best franchise operators in the country, people who have made millions on McDonalds and Burger King, are signing large area development agreements with Panera and opening units basically as fast as they can. There's one near here (Framingham Mall) that is ALWAYS standing room only, and the Arlington one is generally pretty full too. Frankly, I don't understand WHY these units do so well (I don't much care for the food) but the numbers don't lie; the returns are off the charts and some really smart, successful people are signed onto the concept. That does not change the fact that Panera is an incredibly bloated stock from a valuation standpoint. But it could stay that way for a LONG time, as the business is fundamentally sound (look at the way Starbucks traded for YEARS; I've got more scars than I care to count from that one). Cheers