They have consistently reported declining same store sales over the last several quarters, in spite of having consistently increased their prices. The stock rallied during the last earnings report because they had underpromised and were able to beat their forecasts by a couple of pennies by cutting costs. For the full story on the sales picture, go to PF's website, click NEWS, and you will find that at the end of today's release, they post a full breakdown of sales for both concepts by the year in which the stores were opened. The orginal PF Chang's, you will find, still put up great numbers. The newer stores, presumably in more competitive locations, have been unable to match those numbers. Interestingly, the 20 stores opened in 2006 registered a 37.5% decline in Average Weekly Sales. Some kind of a falloff is normal after the excitement of a new store's opening is past, but these horrendous numbers suggest that a large proportion of customers in the newer areas find the PF experience disappointing. The combination of increasing prices, decreasing customer counts and sales volumes and lowered operating costs is, in my opinion, a death spiral for restaurants. However, this stock is well-supported by several funds and they will no doubt try to rally it here.