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Panera Bread (PNRA) Stock Soars on Buyout Rumors

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Shares of Panera Bread Co. rapidly spiked more than 9% in late morning trading Monday following the release of a new report suggesting it is exploring a possible sale.

According to sources cited by Bloomberg, the company is currently exploring several strategic options—including a sale—after it received takeover interest. These sources, who preferred not to be named, said that Panera is working with advisers to study the options right now.

With a market cap of nearly $6 billion, Panera Bread is a major player in the hotly-contested world of fast-casual retail restaurants. The company operates over 2,000 bakery-cafes throughout North America, and the brand is known for its artisan breads, baked goods, and friendly in-store environments.

Panera has strung together an impressive streak of earnings beats, and its stock has gained about 25% so far this year. This run means that potential buyers would not necessarily be getting the company at a discount, which leads us to the obvious question regarding who could be interested in Panera right now.

Investors on social media were quick to suggest that Starbucks (SBUX - Free Report) might be a fitting suitor, and CNBC’s Jim Cramer reiterated this idea shortly thereafter. Nevertheless, neither party has confirmed the reports.

After its recent efforts to expand its food offerings and in-shop experiences, it might make sense for Starbucks to look at a company like Panera. It’s also worth noting that long-time Starbucks CEO Howard Schultz recently stepped down from his position, ushering in a new era for company leadership (also read: Starbucks News: $10 Coffee, Its Next Five Years, Princi is a Go).

Of course, we are in the very early stages of any potential buyout, and there is no provable link between Starbucks and Panera at the moment. Regardless, investors will want to keep a close eye on this story as it continues to play out.

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