The Franchise Owner's most trusted news source

Log In / Register | Jul 16, 2018

Panera CEO Says Company Freer to Plan Long Term after Going Private

In the stock market a lot of emphasis is put on short-term profits and little on what's good for a company in the long run. Panera Bread CEO, chairman and founder Ron Shaich says the JAB buyout of Panera Bread, which will take the firm private, will free it from the pressure to concentrate on good short-term numbers for shareholders, allowing it to do more.

"Being private is a point of competitive advantage," CEO Ron Shaich said on CNBC's "Squawk on the Street." "This is going to allow us to do better work, it's going to allow us to stay committed to the 'do the delivery' initiative, to do the 'clean' initiative we're working on. It will enable us in so many different ways."

…Being out of the public eye would allow the company to work toward long-term goals without the pressure of having to show results quarter to quarter. Shaich said that focusing too much on the short term had been detrimental to the brand in the past.

"What is hard for me is the continual pressure on the short term," Shaich said. "When I started 25 years ago, I will tell you that a third of our investors were looking at this for a year longer. Today, I will tell you two-thirds of our investors are thinking literally quarter to quarter." — Sarah Whitten, CNBC

Full article

No votes yet

About Marilee Hayes

Area of Interest
Buying a Franchise