While today's SSS results were far from impressive, the guidance revision offers something positive. For the first 9 weeks of the quarter, SSS are up 1.5%; yet guidance for the entire quarter is now pegged at growth of 2-3%. In order to meet the low end of this guidance, SSS for the last four weeks will need to rise by a minimum of 3.1%
IMO, management is quite good about never over-promising performance in its guidance. After all, it would be quite bad if sales do not even meet the lowered guidance just issued. Particularly since almost 30% of the last month of the quarter has already passed, I assume that Ron has a pretty good basis for making his prediction about sales for the quarter. To me, that indicates that we should expect a significant rise in SSS for the last month of the quarter.
Only time will tell if this analysis is correct, but it is worth noting that a jump in SSS even up to only 4% would probably lead to a major jump in the stock price.
As was discussed on the conference call, the hard introduction -- with marketing -- of crispani did not begin until after Labor Day. Freshbread is correct that this period's SSS is expected to rise nicely, just from the numbers and they don't want to miss. The remainder of the year should start reflecting increased dinner business.