P.F. Chang's co-CEO predicts tough year in 2009

P.F. Chang's co-CEO predicts tough year ahead, says 1st quarter may be "bad" for industry

• On 7:08 pm EST, Tuesday January 13, 2009

NEW YORK (AP) -- Shares of restaurant chain P.F. Chang's China Bistro Inc. declined Tuesday after the company's new co-chief executive predicted 2009 will likely be a difficult year and that sales may continue to slide at casual dining chains.

The stock closed down 88 cents, or 4.5 percent, to $18.84.

Speaking at the 7th Annual Cowen & Co. Consumer Conference in New York, Bert Vivian -- who joined Rick Federico as CEO of P.F. Chang's earlier this month -- warned investors and analysts to not "be surprised if you see bad things from casual dining in the first quarter."

"I think it's going to be a cold first quarter in retail and in restaurants," he added.

Vivian said he remains optimistic about the future at P.F. Chang's China Bistro despite the dismal economic environment that has kept consumers from spending on small luxuries like eating out.

"Our intent is to be a survivor," he said. "We will come out of this year a stronger company."

He said the company has already slowed down development of both its P.F. Chang's chain and its newer Pei Wei chain.

He added that since it will not be building new restaurants, the company will likely use some of its cash to pay down debt and possibly buy back shares.

Investors may also have reacted to an analyst note late Monday night from Thomas Weisel Partners analyst Fitzhugh Taylor, who noted the challenges facing the company.

"Challenges presented by the current external environment continue to keep us cautious, particularly given P.F. Chang's exposure to the weak full-service segment and housing-bust regions of the country such as California, Arizona, Nevada and Florida," he said.

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