Other than the occasional (okay, fairly frequent) lunchtime or late-night trek to Taco Bell -- a unit of Yum! Brands (NYSE: YUM) -- I'm generally not a huge fan of chain restaurants. Most are very good at what they do, but when I'm dining out with friends or family, I typically prefer something off the beaten path.

One exception to this, however, is the upscale Asian dining spot P.F. Chang's China Bistro (NASDAQ: PFCB). If I may suggest, the steamed dumplings and garlic noodles border on culinary perfection.

PFCB shouldn't need much of a PR blitz from me, however; the waits are always long, any day of the week, and the reviews are generally of the rave variety. And yet, March same-store sales dropped 3.0% at the eatery's benchmark China Bistro locations and edged 0.5% higher at its Pei Wei restaurants. For the quarter, China Bistro same-store sales dropped 2.5% while Pei Wei sales rose 0.5%. Total revenue for the quarter ended April 1 rose to $264.4 million, up 15.6% from year-earlier levels but below analysts' expectations of $268.2 million.

On the heels of this news, PFCB shares have dropped more than 5%, dipping back below their 10-day and 20-day moving averages.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Think the Hooters uniforms are just too puritanical? Not impressed by the new idea of sexpresso? Never fear ... count on Joe Francis, erstwhile paramour of Paris Hilton and puppet master behind the controversial Girls Gone Wild video series to further close the gap between two of George Costanza's passions ... sex and food.

Francis is planning to open a chain of diners in the resort communities of Cancun and Cabo San Lucas, Mexico, by the end of this year. The entrepreneur promises a "fun and sexy" dining experience that will also provide elements of class and comfort. He told the Los Angeles Business Journal that his eateries won't feel like strip clubs: "You'll be comfortable going in there, but you're going to get a Girls Gone Wild experience."

The story of Hooters restaurant chain making its way to the Holy Land broke earlier this week, and frankly I can't believe no one has commented on it here. Maybe the jokes are just a little too easy, or the whole concept is vaguely unsettling.

At any rate, the chain known for hot wings, cold draft beer, and something unique about their waitresses I can't really remember is opening its first branch in Israel over the summer, settling in the city of Tel Aviv. The holder of the new franchise, Ofer Ahiraz, opined that "I strongly believe that the Hooters concept is something that Israelis are looking for." Ahiraz, who hopes to open as many as five branches in the next few years, added that the restaurant's menu would not be kosher, and said he would not make plans for any restaurants near large religious populations.

Hooters, a privately held company, is slowly unleashing its scantily clad business model across the globe. Company officials said over the next two years, it hopes to open 17 locations in Colombia, Dubai, Guam, New Zealand, and India.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

After completing the sale of Tim Hortons and Baja Fresh Mexican Grill, Wendy's International (NYSE:WEN)'s fourth quarter 2006 report revealed a business struggling to recapture core market share, while rivals Burger King and McDonalds report strong performances for the same period.

Wendy's revenue compared to the same quarter '05 was down slightly, from $602.5 million to $596.4 million, but earnings took a dramatic tumble from $30 million to $3.1 million. Much of the drop is attributable to changes brought about by the spin-off of the doughnut and Mexican food companies.

Per-share earnings fell from $.25 (skewed last year by the Tim Horton sale) to $.03. Adjusted EBITDA from continuing operations was down to $38.4 million in the fourth quarter of 2006 from $46.0 million the previous year.



Wendy's stock dropped 2.1% on Friday, closing at $33.11. Wendy's Board voted to pay a $.085 quarterly dividend for the quarter, the 116th consecutive dividend.

Looking hard for a positive note, I noted store margins at company-owned locations rose from 7.7% to 8.4%.

Among the company's plans for the near future to improve profitability are completion of the planned spin-off of Café Express and continued testing of a breakfast menu. It also has announced the move of their advertising account to Saatchi & Saatchi, so look for changes in its marketing message. If only it could bring Dave Thomas back from the dead...

Also check out some other earnings reports that we're following, and let us know what you're expecting.