Chain Leader

David Farkas

Rumor Control
August 31, 2006

On Aug. 25, an equity note from Buckingham Research Group’s Mark Kalinowski landed in my e-mail box. It cited an item from a recent issue of New York magazine, alleging that P.F. Chang’s has met with Nobu, a 16-unit sushi chain with restaurants here and abroad. According to Kalinowski, majority owners Nobuyuki Matsuhisa and actor Robert DeNiro are also talking to Goldman Sachs about a partnership or acquisition. The report noted the Nobu chain could be worth $250 million.

Kalinowski warned against an ill-timed acquisition on P.F. Chang’s part given recent sales woes at both the Bistro concept and fast-casual Pei Wei and the opening of Taneko Japanese Tavern later this year. “Perhaps the company has enough on its plate for the time being,” he wrote.

On the bright side, he noted, “The Nobu brand carries lots of cachet.”

I immediately called a New York-based friend, who does not want to be identified. My well-connected friend told me minority owner Myriad Restaurant Group, which manages several Nobus in New York and London, affirmed that the owners want to sell. This person also said Myriad has been practically left in the dark about any deal.

Then I rang Paul Fleming, P.F. Chang’s founder and one of its largest shareholders. He responded with an e-mail saying he didn’t want to comment “on that silly Nobu rumor.” He suggested I call P.F. Chang’s Chairman and CEO Rick Federico.

Before I had a chance, Federico called me, strongly denying he or anyone else from his company has met with the owners of Nobu. “There is no truth to what Mark wrote [about the meeting with Nobu],” he said in a message left on my voice mail. “We are not pursuing a relationship with them.”

Posted by David Farkas on August 31, 2006 | Comments (0)