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

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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:

• Dim Sum at P.F. Chang's
• Fool on Call: P.F. Chang's 2007
• Ka-Ching at P.F. Chang's

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.