Interstate Bakeries Corp., the nation’s largest distributor of fresh bread and cakes, has filed a shelf registration for $500 million in debt, and in the eyes of at least two analysts, when raised, it will all go to M&A. Mitch Pinheiro, an analyst with Janney Montgomery Scott, said Interstate can pay down its debt with its cash flow and would not want to use its stock for M&A since its shares are trading at such a weak price-to-earnings multiple. Interstate’s stock was at $14.56 at press time, or 12 times earnings. Close competitor The Earthgrains Co., with a market cap of $970 million, trades at 21 times earnings.
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