Panera Bread sees 3Q, full-year profit above views

For the third quarter, Panera expects earnings between 42 cents per share and 44 cents per share, but warned that rising wheat costs will raise its cost of sales.

Analysts polled by Thomson Financial expect third-quarter earnings of 41 cents per share.

For the fourth quarter, Panera expects earnings between 82 cents per share and 86 cents per share, while analysts expect 84 cents per share in profit.

For 2008, Panera expects earnings between $2.17 per share and $2.23 per share. Analysts expect $2.15 per share, according to Thomson.

Panera said it expects its new grilled breakfast sandwiches and other factors will help withstand, but not overcome, weakness in the U.S. economy, which is crimping consumer spending.

Despite inflation in wheat, oil and other commodity costs, Panera's second-quarter profit rose nearly 24 percent, helped by price increases.