The numbers sure looked bad from the press release. Wasnt it AccurateAccountant who said Pei Wei would be written off? Not yet, but probably coming. I shorted yesterday after a long hiatus. But now I think the egg rolls are coming home to roost. Any speculation how the CC will go?
I was hoping to listen to the cc but will probably be unavailable. Can someone post highlights (longbread?) for us to analyze?
I guess the questions still up in the air are: 1 -- what is causing the sss decline (3%???) Wow, if they have raised prices and they aren't sticking then what is next? Could this be the effect of promotions (a la Carl's Jr. a few years back with Green Burrito?) 2 -- Why the lowered guidance? Does this imply the sss is slowed to stopped?
3 -- What gives with Pei Wei? What are the hopes here? Yes, I posted a long time that Pei Wei would get a write down at some point...the name won't carry the valuation
4 -- What is the concept r&d location they hope to open?
Any thoughts or answers on this is appreciated?
I'm looking but I'm not seeing any posts by the longs to justify the stock today. I would have thought today would be the classic "buy on the dip"...this is temporary...it will fill the gap etc.
-Pei Wei SSS running +3% -Construction Delays in all markets -PF Changs SSS -7% july 4th week, -1% next 2 weeks, new guidance is based on -1 to -1.5% SSS -Opening a 'joint venture' Changs in Hawaii next year -New Changs opening in existing market causes 1-2% sales drop at the existing locations. -Speculation that heat wave and gas prices are affecting business
Stock price is now essentially unchanged for the year. This quarter will be key.