Grow too fast and restaurant chains can fizzle like shooting stars. Expand too slowly and they can leave growth opportunities on the table.
Big eateries usually have two big ways to boost revenue: increase same-store sales or open new outlets. But expanding too quickly can drain resources, spark management and customer service issues, and undermine growth. When a stock is on the ascent like Panera Bread (PNRA), deciding how many new outlets to open is crucial to its long-term success.