RICHMOND HEIGHTS Mo. Panera Bread Co. said Wednesday that it would buy back up to $75 million in shares of its common stock during the first quarter of next year, partly through an accelerated share repurchase agreement with a broker.
The company said that if less than $75 million in shares are purchased under the accelerated share repurchase program, Panera could buy additional shares on the open market. It has entered into a $75 million secured credit facility to fund the repurchase.
Securities analysts that follow Panera estimated that the buybacks could add between 3 cents per share and 5 cents per share to fiscal 2008 earnings, and 5 cents per share to fiscal 2009 profit. Panera had about 32.2 million shares outstanding as of Sept. 25, according to the company’s latest quarterly report filed Nov. 2.
Richmond Heights, Mo.-based Panera, which operates or franchises about 1,100 bakery-cafes, has been struggling this year with higher costs and weaker same-store sales. Its stock price has traded recently in the mid-$30 range, well below its 52-week high of $62.78 per share.