Restaurant operator Panera Bread Co reported third-quarter profit that matched analysts' view thanks to investments to improve the quality of customers' experience.

Net income in the quarter ended September 28 totalled $22,797,000, up 21 per cent from $18,894,000 in the third quarter of fiscal 2009. Sales during the third quarter rose 11 per cent to $371,994,000 from $335,018,000 in the same period a year ago.

During the third quarter Panera opened 10 new bakery cafes and franchisees opened 12 new bakery cafes. Panera now operates 1,421 bakery cafes system wide.

"We are pleased to report the investments that we have made to improve the quality of our customers' experience continue to pay off," said Bill Moreton, chief executive officer. "Our 23% year-over-year earnings growth in the third quarter marks the ninth quarter out of the last 10 that we have generated earnings growth of 20% or greater."

However, shares fell 4.6 percent despite its better-than-expected profit targets for the fourth quarter and next year.