It looks like there was some hope that there would be something positive out of the conference call and it did not come. I for one thought the disdain in the analysts tone did not come out in their questions, which were mostly softballs. No real push on the accelerating same stoe sales declines. No real thoughts on the revenue miss. Nothing about how the labor increases only included a couple of weeks of higher minimum wages. No real probe of how they intend to meet guidance when sales are declining much faster than they anticipated.
I guess no one wanted to point out the obvious until they had a chance to sell.
"The restaurant segment's cost of labor increased 20 basis points from 39.1 percent of net sales in the first quarter of fiscal 2009 to 39.3 percent in the first quarter of fiscal 2010 due to deleverage from negative same-store sales and minimum wage increases, partly offset by reductions in labor hours at both restaurant concepts."
The impact of minimum wage is just beginning even though they called it out as part of the problem in this quarter. It will have a much bigger impact in the future. A very big headwind in there largest cost category. None of the analysts even pointed that out, but you know they see it.