Morgan Stanley: P.F.Chang's Prototype Store

In a research report published today by Morgan Stanley, P.F. Chang's China Bistro's PFCB new Irvine, CA store is being used as a prototype to aid in the redesign of the store and menu. According to Morgan Stanley, “Near term, PFCB plans a new menu launch in April that will include its first ever lunch items, which drove a 10% net lift in lunch comps (traffic gains net of check declines), which in turn we think could drive a 3% lift to overall sales. Moreover, first-ever national advertising is planned for this Spring, which, while difficult to quantify, should also drive top line. Longer term, some of the design elements used in the Irvine location could be retrofitted to the existing store base, though this will likely be a longer term catalyst.” Morgan Stanley maintains its Equal-weight rating on P.F. Chang's, which closed Friday at $38.08.