Just Lukewarm at P.F. Chang's: Fool by Numbers

On April 25, P.F. Chang's China Bistro (Nasdaq: PFCB  ) released first-quarter earnings for the period ended April 1.

  • Revenues increased 15.7%. It's a good thing the company opened more Bistro and Pei Wei restaurants, because same-store sales growth just wasn't there.

  • The company could not make the most of those sales, as higher maintenance costs, incentives, and wage rates resulted in lower operating and net margins.

  • P.F. Chang's carries a two-star rating in Motley Fool CAPS, while competitors Brinker International (NYSE: EAT  ) and Cheesecake Factory (Nasdaq: CAKE  ) come in with three stars. Darden Restaurants (NYSE: DRI  ) trails the pack with a single star. (The top rating is five stars.)

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$264.4

$228.6

15.7%

Net Profit

$10.5

$9.8

6.6%

EPS

$0.40

$0.36

11.1%

Diluted Shares

26.0

27.2

(4.4%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

72.4%

72.3%

0.1

Operating Margin

5.9%

6.7%

(0.8)

Net Margin

4%

4.3%

(0.3)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$21.0

$52.1

(59.7%)

Inventory

$4.2

$3.5

19.1%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$11.8

$10.4

12.7%

Long-Term Debt*

$88.8

$58.1

53%

*Includes lease obligations.

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$21.0

$17.1

22.9%

Capital Expenditures

$28.7

$17.4

64.8%

Free Cash Flow

($7.7)

($0.3)

N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


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