PFCB announced Q1 2009 revenue of $309.8 million, about 1.3% higher than Q1 2008. However, the company's cost cutting initiatives during the quarter led to a significant 38.3% jump in the company's net income. As a result, PFCB increased its 2009 full year earnings expectations to $1.45 to $1.50 EPS from continuing operations.
Q2 2008 net income reached $9.4 million, slightly above earlier estimates and an improvement from $9.3 million in Q2 2007. However, comparable store sales declined 2.3% at its namesake China Bistro restaurants and 3.2% at Pei Wei restaurants during the quarter because of lower levels of consumer spending.
Analysts at Jefferies and Company stated that higher menu prices as well as lower costs at PFCB's Pei Wei concept will help improve the company's performance into the latter part of 2008.
Net income for the company in Q1 2008 reached $9.6 million, slightly less than the $10.5 million earned during the same period a year earlier. Comparable store sales increased 0.1% during the quarter at China Bistro restaurants mainly because of a 6% increase in menu prices. Also, comparable store sales declined about 2.4% at Pei Wei restaurants despite slight price increases.
The head of PCFB said that although consumers are spending less because of a weakened economy, he believes that companies that stay strong in harsh economic times and continue to invest in expansions will prosper most after the tough times have passed. Therefore, he believes that PFCB's expansion plans, although scaled back, will ultimately lead the company to thrive in the future.
The company's Q4 2007 net income reached $9.3 million, compared to $9 million in Q4 2006. However, the company's net income decreased to $32 million in 2007, from $33.2 million in 2006. Furthermore, higher operating expenses, primarily increased costs of ingredients and wage rates caused the company's operating margin to decrease approximately 1.1% during 2007 to 4.7%. As a result, the company has scaled back expansion plans about 26% for 2008.
Total revenue increased 16.6% during 2007, mainly due to an increase in the amount of restaurants. However, comparable store sales dropped 1.6% at China Bistro restaurants and remained flat at Pei Wei restaurants.
Q3 2007 revenue reached $270.8 million, about $2.2 million short of expectations. Overall, comparable store sales decreased 1.6% at China Bistro restaurants and 1% at Pei Wei restaurants despite an average 2.5% menu price increase.
PFCB reported that although the company's revenue grew by 18% through Q3 of 2007, the company's growth had slowed considerably mainly because of lower consumer spending. Furthermore, the company expected lower profits in 2007 and into 2008 because of increasing costs, particularly labor costs.
PFCB reported an 18% increase in revenue through Q3 2007 but also stated that it had earned less than expected mainly because of less consumer spending. Also, increased costs, particularly labor costs is expected to lower the company's earnings in the future.
