Not bad with rising food costs. Golden C numbers were pretty heartening. They are outperforming other restaurant stocks like Wendys and Darden in terms of bottom line performance. Looksl like they will earn over $2.00 per share easily this year (especially with economy picking up a bit, but not too much). I now beleive they will earn $2.10 or so. They probably deserve a 12.5 multiple given their sustained performance on that 2.10 which would put fair value a little north of $26. If they were larger cap like Wendys they would get a 15 multiple. Wendys goes for 17 or so and they don't have much better growth prospects going forward (saturation).
I agree with your FRS comments, and as I had said, there were tough 1st qtr comps as well as higher food costs. As to Wendys, half of profits come from Tim Hortons, and they have selectively been entering US market with them, but apparently haven't done well enough to increase pace. Baja Fresh also offers promise for Wendy's.