1-Star Stocks Poised to Plunge: P.F. Chang's?

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, restaurant operator P.F. Chang's China Bistro (NAS: PFCB) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at P.F. Chang's and see what CAPS investors are saying about the stock right now.

P.F. Chang'sfacts

Headquarters (founded)

Scottsdale, Ariz. (1996)

Market Cap

$1.1 billion

Industry

Restaurants

Trailing-12-Month Revenue

$1.2 billion

Management

Chairman/CEO Richard Federico
CFO Mark Mumford

Return on Equity (average, past 3 years)

11%

Cash/Debt

$55.7 million / $1.3 million

Dividend Yield

2.1%

Competitors

Benihana
Brinker International
Carlson Restaurants Worldwide


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 42% of the 231 members who have rated P.F. Chang's believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, mattyabe, touched on P.F. Chang's seemingly limited upside potential:

They have no legitimate growth story. Their bistro is pretty much completely saturated and I'm not buying into the Pei Wei business plan -- if people want Asian takeout then they'll order from P.F. Chang's, if they want fast food Asian then they'll go to a Panda Express. I don't see much of a market for anything between the two.

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The article 1-Star Stocks Poised to Plunge: P.F. Chang's? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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