P.F. Chang's Serves Up Strong Earnings

P.F. Chang's China Bistro (PFCB Quote) shares were set ablaze after the restaurant operator bumped up its profit outlook by more than one-third.

Excluding an 8-cent impairment charge from its standalone Taneko Japanese Tavern, the company now expects to make between 32 cents and 34 cents a share. That's sharply higher than the company's prior guidance and the Wall Street consensus, each of which projected 23 cents a share.

The Scottsdale, Ariz., company attributes most of this to higher-than-expected revenue which, as announced last week, jumped 16.1% from a year earlier to $292.6 million. In October, sales were pegged at just $285.6 million.

Also cited was a "better-than-expected claims development" that resulted in "favorable" adjustments in group medical and workers' comp adjustments. ...