Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of restaurant company P.F. Chang’s
So what: Revenue increased 2.3% to $317.4 million but missed estimates of $320.4 million. Earnings per share also missed the market, coming in seven cents below consensus at $0.46 per share.
Now what: Lost sales of around $1.1 million at eight locations in Arizona that were raided in an immigration raid hurt results in the quarter. Higher costs are putting pressure on restaurant chains to raise prices and margins are hurting as a result. I am inclined to sit out this dip and will stick with companies with better growth prospects like Panera Bread
Interested in more info on P.F. Chang’s? Add it to your watchlist.