* Chipotle tops Wall Street view, worries linger
* P.F. Chang's profit beats expectations, raises '09 view
* Domino's bests analysts' expectations, Landry's misses
* Domino's shares inch up, Chipotle and others fall
(Recasts, adds Chipotle results; previous dateline CHICAGO)
By Jessica Wohl and Lisa Baertlein
CHICAGO/LOS ANGELES, July 22 Chipotle Mexican
Grill, P.F. Chang's China Bistro Inc and Domino's Pizza Inc
posted quarterly profit on Wednesday that topped expectations,
but shares were mixed as investors fretted over their prospects
in a lingering recession.
Chipotle (CMG.N), known for its premium-priced, fast-food
Mexican entrees made with naturally raised meats, posted a
quarterly profit of $1.10 per share, versus Wall Street's call
for earnings of 88 cents.
The restaurant chain got a boost from higher menu prices
and spending cuts on everything from staffing to marketing, but
analysts worried whether the company could maintain the
"It's a question here of sustainability of this type of
performance," RBC Capital Markets analyst Larry Miller said.
Earlier in the day, P.F. Chang's PFCB.O said cost cuts
helped it post better-than-expected quarterly earnings from
continuing operations. The company raised its 2009 forecast,
but said sales weakened in July and that it expected
profitability to take a hit from a looming federal minimum wage
Domino's (DPZ.N) profit also topped analysts' view. Most
notably, sales at domestic locations open at least one year
were down just 0.7 percent, compared with the 8 percent drop
reported by rival Pizza Hut, a unit of Yum Brands Inc (YUM.N).
"The challenge for Domino's is that they derive a fair
amount of their sales from dinner," which is more discretionary
than breakfast or lunch," said Tom Forte, analyst with Telsey
Advisory Group. "The whole pizza category is seeing incremental
pressure that McDonald's (MCD.N) or Burger King BKC.N or
Domino's shares finished up 7 cents, or less than 1
percent, to $8.44.
Stock in Chipotle fell just over 1 percent to $87.80 in
extended trade and P.F. Chang's shares lost nearly 7 percent of
their value to close at $32.48.
Landry's Restaurants Inc LNY.N, a restaurant and casino
operator, posted weaker-than-expected profit as consumers cut
back on trips to Las Vegas and trips to its eateries.
[ID:nBNG511256] Its shares dropped 12.6 percent to $8.80.
The results landed a day after Starbucks Corp's (SBUX.O)
strong profit surprised the market [ID:nN21362287] and a day
before results from McDonald's, which has outperformed most
other restaurant chains during this recession.
Sit-down restaurants like P.F. Chang's and the Landry's chains
Chart House and Rainforest Cafe were suffering long before the
United States officially slid into recession in late 2007. Many
chains are slashing costs and using discounts to attract diners.
P.F. Chang's is pricing five dishes at $9.95 to appeal to
budget-conscious diners, and introduced a kid's menu.
(Reporting by Jessica Wohl in Chicago, Amitha Rajan in
Bangalore and Lisa Baertlein in Los Angeles; Editing by Jeffrey
Benkoe, Brian Moss, Phil Berlowitz)