P F CHANGS CHINA BISTRO INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - P F CHANGS CHINA BISTRO INC	c96560exv99w2.htm

Exhibit 99.1

P.F. Chang’s China Bistro, Inc.

P.F. CHANG’S REPORTS FOURTH QUARTER AND FULL YEAR 2009 RESULTS
Company to Initiate Quarterly Variable Cash Dividend

SCOTTSDALE, ARIZONA, February 17, 2010 — P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the fourth quarter and fiscal year ended January 3, 2010.


(000 except per share data)	Q4 2009		Q4 2008		% Change			FY 2009		FY 2008		% Change
Revenues	$	326,653	$	294,797		10.8	%	$	1,228,179	$	1,198,124		2.5	%

Income from continuing operations	$	11,980	$	7,489		60.0	%	$	43,676	$	35,017		24.7	%
Net income	$	12,035	$	5,445		121.0	%	$	43,197	$	27,426		57.5	%

Diluted income per share:
Income from continuing operations	$	0.52	$	0.31		67.7	%	$	1.87	$	1.45		29.0	%
Net income	$	0.52	$	0.23		126.1	%	$	1.85	$	1.14		62.3	%

Weighted average shares — diluted		23,045		23,851		-3.4	%		23,413		24,080		-2.8	%

The Company’s fourth quarter and fiscal year 2009 results were comprised of 14 and 53 weeks, respectively, compared to 13 and 52 weeks in the fourth quarter and fiscal year 2008.

Highlights for the fourth quarter of 2009 compared to prior year include:

	•		Consolidated revenues increased 10.8% to $326.7 million

	•		Comparable store sales declined 5.2% at the Bistro and increased 3.0% at Pei Wei

	•		Restaurant operating income margin increased 100 basis points to 12.7%

	•		Income from continuing operations increased 60.0% to $12.0 million

	•		Net income increased 121.0%⁽¹⁾ to $12.0 million

	•		Income from continuing operations per diluted share increased 67.7% to $0.52

	•		Net income per diluted share increased 126.1%⁽¹⁾ to $0.52

Highlights for fiscal 2009 compared to prior year include:

	•		Consolidated revenues increased 2.5% to $1,228.2 million

	•		Comparable store sales declined 6.7% at the Bistro and increased 0.1% at Pei Wei

	•		Restaurant operating income margin increased 80 basis points to 12.2%

	•		Income from continuing operations increased 24.7% to $43.7 million

	•		Net income increased 57.5%⁽¹⁾ to $43.2 million

	•		Income from continuing operations per diluted share increased 29.0% to $1.87

	•		Net income per diluted share increased 62.3%⁽¹⁾to $1.85


(1)		Prior year net income includes a loss from discontinued operations related to the fiscal 2008 closure of 10 underperforming Pei Wei restaurants, comprised primarily of $2.7 million in pretax lease termination and severance charges recognized in the fourth quarter of 2008 and $10.2 million in pretax asset impairment, lease termination and severance charges recognized during fiscal 2008.

Fourth quarter comparable store sales

For the 14 weeks ended January 3, 2010, comparable store sales decreased 5.2% at the Bistro due to a reduction in overall guest traffic combined with a slight decline in average check, reflecting the net impact of menu mix changes. Comparable store sales at the Bistro decreased 6.2%, 5.2%, and 4.3% in October, November and December, respectively.

For the 14 weeks ended January 3, 2010, comparable store sales increased 3.0% at Pei Wei due to an increase in overall guest traffic partially offset by a slight decline in average check, reflecting the net impact of menu mix changes. Comparable store sales at Pei Wei increased 3.0%, 3.7%, and 2.4% in October, November and December, respectively.

Comparable store sales for the fourth quarter of fiscal 2009 reflect results from the 14 week operating period in the current year compared to the same 14 week operating period in the prior year. Comparable store sales for December 2009 reflect results from the 5 week operating period in the current year compared to the same 5 week operating period in the prior year.

2010 Expectations

The Company anticipates that fiscal 2010 consolidated revenues will be flat compared to fiscal 2009. This is based on expectations of slightly lower average weekly sales at both concepts during fiscal 2010 and the impact of a 52-week fiscal year in fiscal 2010 (versus 53 weeks in fiscal 2009), offset by the benefit of a full year of revenues for restaurants that opened during fiscal 2009 combined with revenues from six to ten anticipated new restaurant openings during fiscal 2010.

Despite the impact of slightly lower anticipated average weekly sales, the Company expects restaurant operating margins for fiscal 2010 to be consistent with fiscal 2009, primarily due to expectations of favorable cost of sales offsetting the anticipated impact of deleverage of certain fixed operating costs and higher planned marketing spend.

The Company expects to open three to five new Bistro restaurants and three to five new Pei Wei restaurants during fiscal 2010. As a result, the Company anticipates slightly lower preopening expenses for fiscal 2010.

The Company also plans to fully repay its outstanding credit line borrowings of $40 million and repurchase approximately $40 million in common shares under its current $100 million share repurchase authorization during fiscal 2010.

Overall, the Company expects consolidated diluted earnings per share to approximate $2.00 for fiscal 2010.

Initiation of quarterly dividend

Based on the Company’s desire to consistently return excess cash flow to its shareholders, the Board of Directors has approved the initiation of a quarterly variable cash dividend commencing with the first quarter of 2010. The amount of the cash dividend will be computed based on 45% of the Company’s quarterly net income and is expected to total approximately $0.90 per share relating to fiscal 2010.

Page 2 of 10

Financial Reporting Dates in Fiscal 2010

The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2010 as outlined below. The earnings press releases will be issued at approximately 7:00 am ET and the conference calls will follow at 1:00 pm ET on the same day. Dates and times could be subject to change.


		Earnings Release and
Quarter Ending		Conference Call Dates
April 4, 2010		April 28, 2010
July 4, 2010		July 28, 2010
October 3, 2010		October 27, 2010

Conference call information

The Company is hosting a conference call today at 12:00 pm ET in which management will provide further details on the fourth quarter results and the fiscal 2010 outlook. A webcast of the call can be accessed through the company’s website at http://www.pfcb.com.

Definitions

The following definitions apply to these terms as used throughout this release:

Income from continuing operations refers to Income from continuing operations, net of tax, attributable to PFCB common stockholders

Net income refers to Net income attributable to PFCB common stockholders

Comparable store sales changes include company-operated restaurants and represent the change in period-over-period sales for the comparable restaurant base. A restaurant becomes comparable in its eighteenth month of operation.

About the Company

P.F. Chang’s China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F. Chang’s China Bistro features a blend of high-quality, Chinese-inspired cuisine and American hospitality in a sophisticated, contemporary bistro setting. Pei Wei Asian Diner offers a modest menu of freshly prepared pan-Asian cuisine in a relaxed, warm environment offering attentive counter service and take-out flexibility.

Note with respect to non-GAAP financial measures contained within Supplemental Financial Information

In addition to using GAAP results in evaluating the Company’s business, management measures restaurant operating income to assess the performance of its existing restaurant concepts. Restaurant operating income includes all ongoing costs related to operating the Company’s restaurants but excludes preopening expenses and partner investment expense. Because preopening and partner investment expenses are associated with expansion of the Company’s business and vary in timing and magnitude, they make an accurate assessment of the health of its ongoing operations more difficult and are therefore excluded. Additionally, general and administrative expenses are only included in the Company’s consolidated financial presentation as these costs relate to support of both restaurant businesses and are generally not specifically identifiable to individual restaurant operations. As the Company’s expansion is funded entirely from its ongoing restaurant operations, restaurant operating income is a consideration of management when determining whether and when to open additional restaurants. The non-GAAP financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Please see the non-GAAP to GAAP reconciliation at the bottom of pages 6 through 8 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.

Page 3 of 10

Note with respect to forward looking statements

The statements contained in this press release that are not purely historical, including the Company’s estimates of its earnings, revenues and anticipated new restaurants are forward-looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, failure of the Company’s existing or new restaurants to achieve expected results; changes in general economic and political conditions that affect consumer spending; changes in government legislation that may increase labor costs; the dependency on sales concentrated in certain geographic areas or generated by corporate spending; intense competition in the restaurant industry; Global Brand Development initiatives that may impact our brand; damage to our brands or reputation; litigation; adverse public or medical opinions about the health effects of consuming our products; failure to comply with governmental regulations; changes in food costs; the inability to retain key personnel; the Company’s ability to successfully expand its operations; federal and state tax rules could negatively impact results of operations and financial position; fluctuating insurance requirements and costs; marketing programs may not be successful; potential labor shortages that may delay planned openings; the inability to develop and construct restaurants within projected budgets and time periods; seasonality of the Company’s business and other risks described in the Company’s recent SEC filings.

Contacts:

Page 4 of 10

P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)


	14 Weeks			13 Weeks			53 Weeks			52 Weeks
	Ended			Ended			Ended			Ended
	January 3,			December 28,			January 3,			December 28,
	2010			2008			2010			2008
Revenues	$	326,653		$	294,797		$	1,228,179		$	1,198,124
Costs and expenses:
Cost of sales		87,328			79,600			326,421			325,630
Labor		107,052			95,500			401,583			396,911
Operating		53,476			49,339			203,859			198,967
Occupancy		18,288			17,402			70,635			69,809
General and administrative		22,004			21,687			82,749			77,488
Depreciation and amortization		18,303			17,956			74,429			68,711
Preopening expense		1,420			2,311			3,919			8,457
Partner investment expense		(92	)		(364	)		(629	)		(354	)

Total costs and expenses		307,779			283,431			1,162,966			1,145,619

Income from operations		18,874			11,366			65,213			52,505
Interest and other income (expense), net		(345	)		(584	)		(1,637	)		(3,362	)

Income from continuing operations before taxes		18,529			10,782			63,576			49,143
Provision for income taxes		(5,954	)		(2,919	)		(18,492	)		(12,193	)

Income from continuing operations, net of tax		12,575			7,863			45,084			36,950
Loss from discontinued operations, net of tax		55			(2,044	)		(479	)		(7,591	)

Net income		12,630			5,819			44,605			29,359
Less: Net income attributable to noncontrolling interests		595			374			1,408			1,933

Net income attributable to PFCB	$	12,035		$	5,445		$	43,197		$	27,426


Basic income per share:
Income from continuing operations attributable to PFCB common stockholders	$	0.53		$	0.32		$	1.90		$	1.47
Loss from discontinued operations, net of tax, attributable to PFCB common stockholders		0.00			(0.09	)		(0.02	)		(0.32	)

Net income attributable to PFCB common stockholders	$	0.53		$	0.23		$	1.88		$	1.15


Diluted income per share:
Income from continuing operations attributable to PFCB common stockholders	$	0.52		$	0.31		$	1.87		$	1.45
Loss from discontinued operations, net of tax, attributable to PFCB common stockholders		0.00			(0.08	)		(0.02	)		(0.31	)

Net income attributable to PFCB common stockholders	$	0.52		$	0.23		$	1.85		$	1.14


Weighted average shares used in computation:
Basic		22,633			23,623			22,986			23,776

Diluted		23,045			23,851			23,413			24,080


Amounts attributable to PFCB:
Income from continuing operations, net of tax	$	11,980		$	7,489		$	43,676		$	35,017
Loss from discontinued operations, net of tax		55			(2,044	)		(479	)		(7,591	)

Net income attributable to PFCB	$	12,035		$	5,445		$	43,197		$	27,426

Page 5 of 10

P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information


	2007			1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09			3Q09			4Q09			2009

Units		306			322			331			337			348			348			350			351			356			363			363
Sales weeks		14,443			4,122			4,256			4,328			4,464			17,170			4,531			4,563			4,604			5,058			18,756
AWS		75,067			74,216			70,849			68,363			66,039			69,780			68,382			66,044			63,060			64,581			65,482

Revenues (1)		1,084,193			305,917			301,533			295,877			294,797			1,198,124			309,837			301,360			290,329			326,653			1,228,179

Operating costs
Cost of sales		297,242			83,530			82,132			80,368			79,600			325,630			83,072			79,657			76,364			87,328			326,421
Labor		364,074			103,381			99,971			98,059			95,500			396,911			100,707			98,111			95,713			107,052			401,583
Operating		172,147			48,061			49,366			52,201			49,339			198,967			50,691			48,809			50,883			53,476			203,859
Occupancy		62,164			17,626			17,511			17,270			17,402			69,809			17,378			17,403			17,566			18,288			70,635
Net income attributable to noncontrolling interests		4,169			705			487			367			374			1,933			370			288			155			595			1,408
Depreciation & amortization		55,988			16,370			17,150			17,235			17,956			68,711			18,496			18,575			19,055			18,303			74,429
Restaurant operating income		128,409			36,244			34,916			30,377			34,626			136,163			39,123			38,517			30,593			41,611			149,844

Development costs
Preopening expenses		14,310			2,819			1,808			1,519			2,311			8,457			488			461			1,550			1,420			3,919
Partner investment expense		(2,012	)		411			(500	)		99			(364	)		(354	)		(464	)		(91	)		18			(92	)		(629	)

Other expenses
General and administrative (2)		66,968			18,521			19,128			18,152			21,687			77,488			19,814			20,523			20,408			22,004			82,749
Interest and other (income) expense, net		100			934			949			895			584			3,362			940			437			(85	)		345			1,637
Provision for income taxes		12,420			3,581			3,636			2,057			2,919			12,193			4,953			5,108			2,477			5,954			18,492
Income from continuing operations		36,623			9,978			9,895			7,655			7,489			35,017			13,392			12,079			6,225			11,980			43,676
Loss from discontinued operations, net of tax		(4,560	)		(329	)		(525	)		(4,693	)		(2,044	)		(7,591	)		(43	)		(474	)		(17	)		55			(479	)
Net income attributable to PFCB		32,063			9,649			9,370			2,962			5,445			27,426			13,349			11,605			6,208			12,035			43,197

Income from continuing operations per FDS	$	1.41		$	0.41		$	0.41		$	0.32		$	0.31		$	1.45		$	0.56		$	0.51		$	0.27		$	0.52		$	1.87

Fully diluted shares (FDS)		25,899			24,295			24,247			23,927			23,851			24,080			23,795			23,526			23,285			23,045			23,413

Revenues		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		27.4	%		27.3	%		27.2	%		27.2	%		27.0	%		27.2	%		26.8	%		26.4	%		26.3	%		26.7	%		26.6	%
Labor		33.6	%		33.8	%		33.2	%		33.1	%		32.4	%		33.1	%		32.5	%		32.6	%		33.0	%		32.8	%		32.7	%
Operating		15.9	%		15.7	%		16.4	%		17.6	%		16.7	%		16.6	%		16.4	%		16.2	%		17.5	%		16.4	%		16.6	%
Occupancy		5.7	%		5.8	%		5.8	%		5.8	%		5.9	%		5.8	%		5.6	%		5.8	%		6.1	%		5.6	%		5.8	%
Net income attributable to noncontrolling interests		0.4	%		0.2	%		0.2	%		0.1	%		0.1	%		0.2	%		0.1	%		0.1	%		0.1	%		0.2	%		0.1	%
Depreciation & amortization		5.2	%		5.4	%		5.7	%		5.8	%		6.1	%		5.7	%		6.0	%		6.2	%		6.6	%		5.6	%		6.1	%

Restaurant operating income		11.8	%		11.8	%		11.6	%		10.3	%		11.7	%		11.4	%		12.6	%		12.8	%		10.5	%		12.7	%		12.2	%

Preopening expenses		1.3	%		0.9	%		0.6	%		0.5	%		0.8	%		0.7	%		0.2	%		0.2	%		0.5	%		0.4	%		0.3	%
Partner investment expense		(0.2	%)		0.1	%		(0.2	%)		0.0	%		(0.1	%)		(0.0	%)		(0.1	%)		(0.0	%)		0.0	%		(0.0	%)		(0.1	%)
General and administrative (2)		6.2	%		6.1	%		6.3	%		6.1	%		7.4	%		6.5	%		6.4	%		6.8	%		7.0	%		6.7	%		6.7	%
Interest and other (income) expense, net		0.0	%		0.3	%		0.3	%		0.3	%		0.2	%		0.3	%		0.3	%		0.1	%		(0.0	%)		0.1	%		0.1	%
Provision for income taxes		1.1	%		1.2	%		1.2	%		0.7	%		1.0	%		1.0	%		1.6	%		1.7	%		0.9	%		1.8	%		1.5	%

Income from continuing operations		3.4	%		3.3	%		3.3	%		2.6	%		2.5	%		2.9	%		4.3	%		4.0	%		2.1	%		3.7	%		3.6	%

Loss from discontinued operations, net of tax		(0.4	%)		(0.1	%)		(0.2	%)		(1.6	%)		(0.7	%)		(0.6	%)		(0.0	%)		(0.2	%)		(0.0	%)		0.0	%		(0.0	%)

Net income attributable to PFCB		3.0	%		3.2	%		3.1	%		1.0	%		1.8	%		2.3	%		4.3	%		3.9	%		2.1	%		3.7	%		3.5	%


Reconciliation of Non-GAAP Financial Information to GAAP measures:
Restaurant operating income		128,409			36,244			34,916			30,377			34,626			136,163			39,123			38,517			30,593			41,611			149,844
Add: Net income attributable to noncontrolling interests		4,169			705			487			367			374			1,933			370			288			155			595			1,408
Less: General and administrative (2)		(66,968	)		(18,521	)		(19,128	)		(18,152	)		(21,687	)		(77,488	)		(19,814	)		(20,523	)		(20,408	)		(22,004	)		(82,749	)
Less: Preopening expenses		(14,310	)		(2,819	)		(1,808	)		(1,519	)		(2,311	)		(8,457	)		(488	)		(461	)		(1,550	)		(1,420	)		(3,919	)
Less: Partner investment expense		2,012			(411	)		500			(99	)		364			354			464			91			(18	)		92			629

Income from operations		53,312			15,198			14,967			10,974			11,366			52,505			19,655			17,912			8,772			18,874			65,213


Note:		Consolidated results include the impact of Shared Services and Other as well as the Bistro and Pei Wei concepts

(1)		Consolidated revenues include revenues related to the Bistro and Pei Wei concepts as well as Global Brand Development initiatives

(2)		Consolidated general and administrative expenses includes the costs of supporting the Company, including all concepts

Page 6 of 10

Concept: P.F. Chang’s China Bistro
Supplemental Financial Information


	2007			1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09			3Q09			4Q09			2009

Units		172			177			182			182			189			189			190			190			192			197			197
Sales weeks		8,289			2,275			2,330			2,355			2,413			9,373			2,458			2,470			2,486			2,736			10,150
AWS		102,486			103,763			99,502			96,139			93,427			98,127			95,661			91,958			87,324			89,884			91,161
Revenues (1)		849,743			236,089			231,972			226,443			225,459			919,963			235,141			227,144			217,093			245,943			925,321

Operating costs
Cost of sales		232,578			64,410			62,999			61,430			61,072			249,911			62,963			59,749			56,624			65,480			244,816
Labor		282,919			79,318			76,153			74,387			72,109			301,967			76,051			73,286			71,216			80,222			300,775
Operating		131,863			36,324			36,603			38,556			37,600			149,083			36,973			36,373			37,487			40,050			150,883
Occupancy		47,059			12,981			12,730			12,536			12,423			50,670			12,441			12,412			12,390			12,943			50,186
Net income attributable to noncontrolling interests		3,351			497			370			271			223			1,361			179			145			104			110			538
Depreciation & amortization		42,294			12,265			12,794			12,771			13,261			51,091			13,728			13,646			13,900			13,247			54,521
Restaurant operating income		109,679			30,294			30,323			26,492			28,771			115,880			32,806			31,533			25,372			33,891			123,602

Revenues		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		27.4	%		27.3	%		27.2	%		27.1	%		27.1	%		27.2	%		26.8	%		26.3	%		26.1	%		26.6	%		26.5	%
Labor		33.3	%		33.6	%		32.8	%		32.9	%		32.0	%		32.8	%		32.3	%		32.3	%		32.8	%		32.6	%		32.5	%
Operating		15.5	%		15.4	%		15.8	%		17.0	%		16.7	%		16.2	%		15.7	%		16.0	%		17.3	%		16.3	%		16.3	%
Occupancy		5.5	%		5.5	%		5.5	%		5.5	%		5.5	%		5.5	%		5.3	%		5.5	%		5.7	%		5.3	%		5.4	%
Net income attributable to noncontrolling interests		0.4	%		0.2	%		0.2	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.0	%		0.0	%		0.1	%
Depreciation & amortization		5.0	%		5.2	%		5.5	%		5.6	%		5.9	%		5.6	%		5.8	%		6.0	%		6.4	%		5.4	%		5.9	%

Restaurant operating income		12.9	%		12.8	%		13.1	%		11.7	%		12.7	%		12.6	%		14.0	%		13.9	%		11.7	%		13.8	%		13.4	%


Reconciliation of Non-GAAP Financial Information to GAAP measures:
Restaurant operating income		109,679			30,294			30,323			26,492			28,771			115,880			32,806			31,533			25,372			33,891			123,602
Add: Net income attributable to noncontrolling interests		3,351			497			370			271			223			1,361			179			145			104			110			538
Less: Preopening expenses		(9,012	)		(1,729	)		(1,271	)		(732	)		(1,945	)		(5,677	)		(294	)		(280	)		(1,004	)		(1,257	)		(2,835	)
Less: Partner investment expense		3,358			245			500			103			218			1,066			148			20			—			68			236

Income from operations		107,376			29,307			29,922			26,134			27,267			112,630			32,839			31,418			24,472			32,812			121,541


Note:		General and administrative expenses are reflected in the Company’s consolidated results

Page 7 of 10

Concept: Pei Wei Asian Diner ^(A)
Supplemental Financial Information


	2007			1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09			3Q09			4Q09			2009

Units		134			145			149			155			159			159			160			161			164			166			166
Sales weeks		6,154			1,847			1,926			1,973			2,051			7,797			2,073			2,093			2,118			2,322			8,606
AWS		38,095			37,806			36,117			35,192			33,806			35,675			36,011			35,459			34,578			34,701			35,171
Revenues		234,450			69,828			69,561			69,434			69,338			278,161			74,696			74,216			73,236			80,576			302,724

Operating costs
Cost of sales		64,664			19,120			19,133			18,938			18,528			75,719			20,109			19,908			19,740			21,848			81,605
Labor		81,155			24,063			23,818			23,672			23,391			94,944			24,656			24,825			24,497			26,830			100,808
Operating		40,284			11,737			12,763			13,645			11,739			49,884			13,718			12,436			13,396			13,426			52,976
Occupancy		15,105			4,645			4,781			4,734			4,979			19,139			4,937			4,991			5,176			5,345			20,449
Net income attributable to noncontrolling interests		818			208			117			96			151			572			191			143			51			485			870
Depreciation & amortization		12,278			3,774			3,995			4,119			4,270			16,158			4,350			4,440			4,647			4,666			18,103
Restaurant operating income		20,146			6,281			4,954			4,230			6,280			21,745			6,735			7,473			5,729			7,976			27,913

Revenues		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		27.6	%		27.4	%		27.5	%		27.3	%		26.7	%		27.2	%		26.9	%		26.8	%		27.0	%		27.1	%		27.0	%
Labor		34.6	%		34.5	%		34.2	%		34.1	%		33.7	%		34.1	%		33.0	%		33.4	%		33.4	%		33.3	%		33.3	%
Operating		17.2	%		16.8	%		18.3	%		19.7	%		16.9	%		17.9	%		18.4	%		16.8	%		18.3	%		16.7	%		17.5	%
Occupancy		6.4	%		6.7	%		6.9	%		6.8	%		7.2	%		6.9	%		6.6	%		6.7	%		7.1	%		6.6	%		6.8	%
Net income attributable to noncontrolling interests		0.3	%		0.3	%		0.2	%		0.1	%		0.2	%		0.2	%		0.3	%		0.2	%		0.1	%		0.6	%		0.3	%
Depreciation & amortization		5.2	%		5.4	%		5.7	%		5.9	%		6.2	%		5.8	%		5.8	%		6.0	%		6.3	%		5.8	%		6.0	%

Restaurant operating income		8.6	%		9.0	%		7.1	%		6.1	%		9.1	%		7.8	%		9.0	%		10.1	%		7.8	%		9.9	%		9.2	%


Reconciliation of Non-GAAP Financial Information to GAAP measures:
Restaurant operating income		20,146			6,281			4,954			4,230			6,280			21,745			6,735			7,473			5,729			7,976			27,913
Add: Net income attributable to noncontrolling interests		818			208			117			96			151			572			191			143			51			485			870
Less: Preopening expenses		(5,298	)		(1,090	)		(537	)		(787	)		(366	)		(2,780	)		(194	)		(181	)		(546	)		(163	)		(1,084	)
Less: Partner investment expense		(1,346	)		(656	)		—			(202	)		146			(712	)		316			71			(18	)		24			393

Income from operations		14,320			4,743			4,534			3,337			6,211			18,825			7,048			7,506			5,216			8,322			28,092


Note:		General and administrative expenses are reflected in the Company’s consolidated results

(A)		All current and historical operating results related to closed Pei Wei restaurants are reflected within discontinued operations for all periods presented.

Page 8 of 10

P.F. Chang’s China Bistro

Supplemental Sales Information (Company Owned)

Year of Unit Opening (1)


	Pre-2002			2002			2003			2004			2005			2006			2007			2008			2009		Total

Units		64			14			18			18			18			20			20			17			8		197

Sales (000)

1Q09		90,049			17,380			23,552			18,967			19,752			22,320			23,344			19,653			118		235,135
2Q09		86,490			16,225			22,655			18,623			18,993			21,760			22,750			18,177			1,464		227,137
3Q09		81,993			15,296			21,744			18,361			17,980			20,414			21,743			16,698			2,858		217,087
4Q09		91,525			17,205			23,963			19,588			19,928			22,773			23,889			18,340			8,712		245,923

2009		350,057			66,106			91,914			75,539			76,653			87,267			91,726			72,868			13,152		925,282

Average Weekly Sales (AWS)

1Q09		108,231			95,496			100,651			81,054			84,412			85,846			89,784			88,928			118,392		95,661
2Q09		103,955			89,147			96,814			79,587			81,165			83,691			87,501			82,249			112,615		91,958
3Q09		98,550			84,045			92,922			78,467			76,838			78,517			83,625			75,556			98,552		87,324
4Q09		102,148			87,781			95,091			77,728			79,079			81,331			85,320			77,059			96,795		89,884

2009		103,201			89,092			96,346			79,181			80,349			82,327			86,534			80,875			98,887		91,161

Year-Over-Year Change in AWS (2)(4)

1Q09		-6.6	%		-5.1	%		-6.4	%		-6.5	%		-6.5	%		-6.2	%		-13.5	%		-20.0	%		—		-7.4	%
2Q09		-6.3	%		-6.6	%		-7.1	%		-6.5	%		-6.6	%		-5.7	%		-9.4	%		-15.3	%		—		-7.1	%
3Q09		-8.4	%		-8.1	%		-7.6	%		-8.3	%		-7.0	%		-8.0	%		-10.1	%		-16.4	%		—		-8.7	%
4Q09		-5.8	%		-5.7	%		-4.1	%		-4.7	%		-5.5	%		-4.2	%		-3.7	%		-15.1	%		—		-5.8	%

2009		-6.8	%		-6.3	%		-6.3	%		-6.5	%		-6.4	%		-6.0	%		-9.3	%		-15.9	%		—		-7.2	%

Year-Over-Year Change Comparable Store Sales (3)(4)

Units		64			14			18			18			18			20			20			10			—		182

1Q09		-6.6	%		-5.1	%		-6.4	%		-6.5	%		-6.5	%		-6.2	%		-10.4	%		—			—		-6.6	%
2Q09		-6.3	%		-6.6	%		-7.1	%		-6.5	%		-6.6	%		-5.7	%		-9.4	%		-5.8	%		—		-6.8	%
3Q09		-8.9	%		-8.1	%		-7.6	%		-8.3	%		-7.0	%		-8.0	%		-10.1	%		-8.4	%		—		-8.5	%
4Q09		-5.8	%		-5.7	%		-4.1	%		-4.7	%		-5.5	%		-4.2	%		-3.7	%		-6.4	%		—		-5.2	%

2009		-6.9	%		-6.3	%		-6.3	%		-6.5	%		-6.4	%		-6.0	%		-8.2	%		-7.1	%		—		-6.7	%


(1)		Includes all restaurants opened in the period indicated.

(2)		A unit is included in the year-over-year change in AWS in the thirteenth month of operation.

(3)		A unit becomes comparable in the eighteenth month of operation.

(4)		Comparable store sales for the fourth quarter of fiscal 2009 reflect results from the 14 week operating period in the current year compared to the same 14 week operating period in the prior year.

Page 9 of 10

Pei Wei Asian Diner

Supplemental Sales Information

Year of Unit Opening (1)


	Pre-2002			2002			2003			2004			2005			2006			2007			2008			2009		Total

Units		5			11			17			19			23			27			32			25			7		166

Sales (000)

1Q09		2,690			5,502			8,729			10,036			10,874			12,762			13,386			10,374			298		74,651
2Q09		2,597			5,312			8,464			9,816			10,832			12,681			13,437			10,171			906		74,216
3Q09		2,451			5,057			8,211			9,602			10,602			12,573			13,161			9,733			1,846		73,236
4Q09		2,741			5,589			8,938			10,129			11,453			13,539			14,195			10,563			3,429		80,576

2009		10,479			21,460			34,342			39,583			43,761			51,555			54,179			40,841			6,479		302,679

Average Weekly Sales (AWS)

1Q09		41,380			38,474			39,498			40,632			36,367			36,359			32,179			31,920			49,652		36,011
2Q09		39,958			37,150			38,300			39,739			36,226			36,129			32,300			31,296			34,858		35,459
3Q09		37,709			35,365			37,155			38,875			35,457			35,820			31,637			29,947			36,199		34,578
4Q09		39,156			36,290			37,555			38,078			35,568			35,819			31,685			30,182			35,720		34,701

2009		39,543			36,810			38,115			39,307			35,899			36,028			31,945			30,824			36,198		35,171

Year-Over-Year Change in AWS (2)(4)

1Q09		-4.5	%		-3.9	%		-2.4	%		-2.3	%		-2.1	%		-0.3	%		-3.6	%		-22.7	%		—		-3.6	%
2Q09		-3.3	%		-1.5	%		-1.2	%		-1.5	%		1.0	%		2.1	%		0.9	%		-11.8	%		—		-1.0	%
3Q09		-5.0	%		-4.1	%		-2.1	%		-0.8	%		0.8	%		3.0	%		0.4	%		-8.8	%		—		-1.1	%
4Q09		3.2	%		1.7	%		1.9	%		-1.0	%		3.2	%		5.7	%		4.9	%		-4.7	%		—		2.0	%

2009		-2.4	%		-1.9	%		-0.9	%		-1.4	%		0.7	%		2.6	%		0.6	%		-10.0	%		—		-0.9	%

Year-Over-Year Change Comparable Store Sales (3)(4)

Units		5			11			17			19			23			27			32			17			—		151

1Q09		-4.5	%		-3.9	%		-2.4	%		-2.3	%		-2.1	%		-0.3	%		-2.9	%		—			—		-2.2	%
2Q09		-3.3	%		-1.5	%		-1.2	%		-1.5	%		1.0	%		2.1	%		0.9	%		-10.6	%		—		-0.1	%
3Q09		-5.0	%		-4.1	%		-2.1	%		-0.8	%		0.8	%		3.0	%		0.4	%		-8.0	%		—		-0.7	%
4Q09		3.2	%		1.7	%		1.9	%		-1.0	%		3.2	%		5.7	%		4.9	%		1.8	%		—		3.0	%

2009		-2.4	%		-1.9	%		-0.9	%		-1.4	%		0.7	%		2.6	%		1.0	%		-3.2	%		—		0.1	%


(1)		Includes all restaurants opened in the period indicated.

(2)		A unit is included in the year-over-year change in AWS in the thirteenth month of operation.

(3)		A unit becomes comparable in the eighteenth month of operation.

(4)		Comparable store sales for the fourth quarter of fiscal 2009 reflect results from the 14 week operating period in the current year compared to the same 14 week operating period in the prior year.

Page 10 of 10

Allison Schulder

(480) 888-3000

allison.schulder@pfcb.com

Pete Marino

(312) 339-8833

pmarino@digcommunications.com

Dig Communications