Monday, April 27, 2009


My favorite restaurant chain at the moment is PF Chang's China Bistro (PFCB). Admittedly, I should have posted this yesterday instead of today (before the strong earnings results). Even still, the stock in my view has similar fundamentals to CMG, but is so much cheaper.

It's only a 5.7x Enterprise Value to EBITDA vs. 13x for CMG. CMG has better operating margins (10% vs. 4%) but PFCB's return on equity is close to CMG (11% vs. 13%). CMG has more cash, but it's pricey.

Even after a 20% pop today on the back of a good earnings report, PFCB looks good to me.

Originally published in on 4/22/2009 2:57 PM EDT

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