Panera Bread Co. (PNRA)

Previously Recommended:

Panera is a company I have been following since October 30th, and have been invested in for about two months.  The recommendation I made for PNRA can be found if you click here.  If you click on this link, you can scroll down and see some of my responses to questions from other investors.

Run-Up in Share Price:

Today, PNRA shares increased over 16% due to a strong forecast for future earnings.  At the time of my initial recommendation (October 30th) the share price was $89.51; now the share price is $116.24.  This is an increase in value of over 30%.  Despite the increase in share price, I still think Panera is a great investment for the long-run.  Specific details are provided in my initial recommendation.

Michael R Caligiuri owns shares of Panera stock

Krispy Kreme Doughnuts (KKD)

Sell

Despite the better than expected profit and the 18% share price increase, I reccomend for investors to sell their stock in KKD.  Might as well take the awesome 18% price jump and sell.

Reason's I think this is not a good company to invest in:

• Revenue has decreased every year.  How is a company that sells doghnuts supposed to grow if it can't increase revenue?
• Profit margins are small.  the profit margin is 1.37%.  If the economy takes another turn, KKD is going to be very squeezed to make a profit.
• It is already selling for over 5X book value.  I'm not quite sure what KKD has done to warrant such a high market price.
• Most importantly, there are better companies to invest in like my previous recs on my Motley Fool CAPS blog including  VPRT, PNRA, and GS