P.F. Chang's China Bistro (PFCB)

Tastylunch (99.03) Submitted: 7/09/08 6:25 PM : Start Price: $22.69 PFCB Score: -12.37

Reload

I'm not a fan of restaurants in this consumer environment (high gas, high food, foreclosed homes). First Madcowmonkey convinced me then, then TMFDeej drove it home and the I finally got off my butt and thumbed some down.
I've missed some easy points by procrastinating.

PF Chang's might be one the more affected ones out there. It's mid to high price range so it does have some exposure to customer trading down but the real problem here is the rice shortage and possible rice shortages in the future. I don't know about you but I don't want to eat Chinese without rice. Twice in may I've gone to two separate PF chang's and been denied rice due to shortages. This can not be good for their bottom line or customer retention.

PFCB is not cheap to begin with and has a moderately high amount of debt (0.60 LT to equity). I don't expect them to have a stellar 2008 even in a better situation.

I think there is strong pressure to the downside on this stock due to a probable earnings miss (es) coming up.

Report this Post Replies: 0 | Reply