a) still no CFO named -- how many months has it been b) the that former CFO sold most of her holdings as they vested --- where is the fait c) Pei Wei isn't the "huge growth vehicle" that they thought. In fact, the numbers and observations seem to support that Pei Wei cannibalizes PF Changs flagship brand. d) SSS is essentially flat? Quickly looking CPK on 10/24/2005 posted a 7.1% sss...BJ's 5.1%.....the list goes on. e) Concept is "tired". They forgot to strike while the iron was hot. f) Competition - new, "chinese bistro" concepts are coming on, imitators will get some share leaving poor PFCB with a bad stock price, a crazy PE until the "E" drops down which will soon be followed by a lower "P" which doesn't help the cheerleaders here.
I think what I would be concerned with is that this is the worst 6 months or so of operations in the companies history and the price STILL clings to $50. When the operations side starts to turn around in the 2nd half of 2006, well, you know.
"e) Concept is "tired". They forgot to strike while the iron was hot. "
Ah yes, the management strategy that worked so well for Krispy Kreme and Boston Market, LOL.
I don't think operations can fix this problem, longbread. If you look at the same store sales numbers for PF's (and I know you do) the trend over the past 4 quarters is consistently down. This at a time when, granted, gas prices were rising. However,if you have a 1% increase in sales, .7% of which is attributed to a price increase and the remainder to "increased customer counts", one logical conclusion is that the size of the typical tab is going down.