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Janney Montgomery Scott Initiates Coverage on PF Chang's China Bistro (PFCB) with a Neutral; Positives & Risks

November 4, 2009 9:09 AM EST
PFCB Hot Sheet
Rating Summary:
    3 Buy, 14 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Janney Montgomery Scott initiates coverage on PF Chang's China Bistro (Nasdaq: PFCB) with a Neutral rating.

Janney analyst says, "We initiate coverage of P.F. Chang's owner and operator of the namesake casual-dining concept and the Pei Wei Asian Diner fast-casual restaurant concept with a NEUTRAL rating. Positives for the company and its stock include the above-average same-store sales trends of Pei Wei(which should return to showing positive comps in Q4 2009) and the company's clear market-share leadership in the Asian-cuisine categories for casual dining and fast-casual. Risks facing the company include our outlook calling for continued weak same-store sales at the P.F. Chang s China Bistro concept and the company's heavy presence in California (18.8% of all bistros), which has an economy struggling more so than those of most other states...Our EPS estimates for 2009, 2010, and 2011 are $1.74, $1.84, and $2.12, respectively. (Keep in mind that 2009 is a 53-week fiscal year for PFCB.) The 2009 and 2011 projections are in line with First Call consensus; the 2010 forecast lies four cents below First Call consensus. Our forecast calling for 14% annualized long-term EPS growth matches the First Call median projection."

To see more analyst ratings on PFCB Click Here.

P.F. Chang's China Bistro, Inc., through its subsidiaries, engages in the ownership and operation of restaurants in the United States.

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