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Author(s)

David Stowell

Alexander Katz

This case considers the buyout of Panera Bread from the perspective of a private equity fund. In early 2017, KLG Managing Director Tom Denning is considering a leveraged buyout of Panera Bread, a rapidly growing fast-casual restaurant company. A surprising Bloomberg News story signals that the deal process is broadening and KLG will have to act quickly if it hopes to buy Panera Bread. Students assume the role of Tom Denning as he prepares an investment recommendation for KLG's investment committee. In doing so, students are required to consider a very large and expensive investment. Students are challenged to create an investment recommendation by performing due diligence, determining additional questions to ask, and pricing a buyout bid that incorporates an optimal capital structure and meets KLG's return requirements. The Panera Bread case is designed to give students insight into the private equity investment process.

Date Published: 08/30/2019
Discipline: Finance
Key Concepts: cash flow analysis, corporate strategy, financial analysis, financial statements, financial strategy, mergers and acquisitions, private equity, shareholder value added, strategic planning, valuation
Citations: Stowell, David, Alexander Katz. The Panera Bread LBO. 5-219-250 (KE1153).