Panera Bread Defies Recession

Sales in Panera Bread company-owned stores rose almost 7 percent during the first 27 days of the third quarter while sales in franchise stores rose 6.3 percent. Profits for the franchisor rose 38 percent in the third quarter. For franchisees who owned stock, the price was up 26 percent for the year as of December 23. It’s one of the best performing stocks of the decade, with a 1,560.65% return. That means a $10,000 investment in Panera Bread stock 10 years ago would be worth $166,065 now.

Panera's continued growth stands out. "I've never seen restaurants this competitive," says Bob Derrington, an analyst at Morgan Keegan and a 30-year veteran of the industry. "It's a flea market out there. For Panera to keep their prices and still succeed like this — it's an astounding achivement." - Time Magazine

How has the company been able to turn in such a performance when it seems that almost everyone is being battered by the economy? By standing still, says an analyst at Piper Jaffray. Say what!?