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8-K - FORM 8-K - P F CHANGS CHINA BISTRO INCc07492e8vk.htm
EX-99.2 - EXHIBIT 99.2 - P F CHANGS CHINA BISTRO INCc07492exv99w2.htm
Exhibit 99.1
P.F. Chang’s China Bistro, Inc.
P.F. CHANG’S REPORTS THIRD QUARTER 2010 RESULTS
SCOTTSDALE, ARIZONA, October 27, 2010 — P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the third quarter ended October 3, 2010.
                         
(000 except per share data)   Q3 2010     Q3 2009     % Change  
Revenues
  $ 308,410     $ 290,329       6.2 %
Income from continuing operations
  $ 10,465     $ 6,225       68.1 %
Net income
  $ 10,465     $ 6,208       68.6 %
 
                       
Diluted income per share:
                       
Income from continuing operations
  $ 0.45     $ 0.27       66.7 %
Net income
  $ 0.45     $ 0.27       66.7 %
Weighted average shares — diluted
    23,070       23,285       -0.9 %
Highlights for the third quarter of 2010 compared to the prior year quarter include:
   
Consolidated revenues increased 6.2% to $308.4 million.
 
   
Comparable store sales increased 2.3% at the Bistro and 0.8% at Pei Wei.
 
   
Income from continuing operations increased 68.1% to $10.5 million.
 
   
Net income increased 68.6% to $10.5 million.
 
   
Income from continuing operations and net income per diluted share increased 66.7% to $0.45.
Third quarter comparable store sales
                                 
    Fiscal 2010  
    July     August     September     Total Q3  
Bistro
                               
Traffic effect
    3.6 %     2.7 %     1.8 %     2.8 %
Average ticket effect
    -0.7 %     -0.6 %     -0.2 %     -0.5 %
 
                       
Total comparable store sales
    2.9 %     2.1 %     1.6 %     2.3 %
 
                       
 
                               
Pei Wei
                               
Traffic effect
    0.5 %     -1.2 %     -4.3 %     -1.5 %
Average ticket effect
    1.9 %     2.2 %     3.0 %     2.3 %
 
                       
Total comparable store sales
    2.4 %     1.0 %     -1.3 %     0.8 %
 
                       
Bistro
The Bistro achieved positive same store sales in the third quarter of 2010 including the benefit of positive traffic throughout the entire quarter. Average ticket at the Bistro declined during the quarter, but sequentially improved primarily due to the benefit of a one to two percent menu price increase that went into effect during the second quarter of 2010.

 

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Pei Wei
Pei Wei achieved positive same store sales in the third quarter of 2010. Average ticket at Pei Wei was positive for the entire quarter including incremental sales of small plate menu items and, to a lesser extent, the benefit of an approximate one percent menu price increase that went into effect during the second quarter of 2010. Traffic declined during the third quarter, including the impact of a calendar shift in limited time offer promotions.
Comparable store sales for the third quarter of fiscal 2010 reflect results from the 13 week operating period in the current year compared to the same 13 week operating period in the prior year.
Global Brand Development
Global Brand Development revenues totaled $0.9 million during the third quarter of 2010 related to six international Bistro restaurants and a new line of premium frozen food entrées, all of which operate under licensing agreements as well as two Bistro restaurants operated in Hawaii under a joint venture arrangement.
General and administrative expenses
General and administrative expenses includes the impact of higher expense primarily resulting from an increase in the fair value of performance units (approximately $0.04 per share) and other share-based awards that are tied to the Company’s stock price (approximately $0.02 per share). Additionally, higher excise taxes were recognized in connection with a multi-year state tax audit of the Company’s partnership returns (approximately $0.02 per share).
2010 Expectations
The Company anticipates that fiscal 2010 consolidated revenues will increase slightly compared to fiscal 2009, including expectations of slightly higher average weekly sales at Pei Wei and slightly lower average weekly sales at the Bistro for the full year. The Company expects fiscal 2010 restaurant operating margins to be slightly lower than fiscal 2009 and consolidated diluted earnings per share for fiscal 2010 to approximate $1.95.
The Company expects to open one new Bistro restaurant during the fourth quarter of fiscal 2010. The Company also plans to repurchase approximately $40.0 million in common shares under its current share repurchase authorization during fiscal 2010. The Company repurchased $26.2 million of its common shares through the quarter ended October 3, 2010.
Quarterly dividend
The Company’s Board of Directors has authorized a cash dividend payment of $0.21 per share on the Company’s outstanding common stock. The dividend is payable on November 22, 2010 to shareholders of record at the close of business on November 8, 2010. The amount of the cash dividend was computed based on 45% of the Company’s net income for the quarter ended October 3, 2010.
2011 Development
The Company currently expects to open three to five new Bistro restaurants and 10 to 12 new Pei Wei restaurants during fiscal 2011. In addition, the Company expects its international partners collectively to open seven to ten Bistro restaurants in international markets during fiscal 2011.
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.

 

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Conference call information
The Company is hosting a conference call today at 1:00 pm ET in which management will provide further details on the third quarter results. A webcast of the call can be accessed through the company’s website at http://www.pfcb.com.
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. In addition, the Company has extended the P.F. Chang’s brand to international markets and retail products both of which are operated under licensing agreements.
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 generally not specifically identifiable to individual business units and are only included in the Company’s consolidated financial presentation as these costs relate to support of both restaurant concepts and the Company’s brands into international markets and retail products. 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 5 through 7 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.
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:
           
 
           
Investor:
  Allison Schulder   (480) 888-3000   allison.schulder@pfcb.com
 
           
Media:
  Pete Marino   (312) 339-8833   pmarino@digcommunications.com
 
  Dig Communications        

 

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P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                                 
    13 Weeks Ended     39 Weeks Ended  
    October 3,     September 27,     October 3,     September 27,  
    2010     2009     2010     2009  
Revenues
  $ 308,410     $ 290,329     $ 931,619     $ 901,526  
Costs and expenses:
                               
Cost of sales
    78,380       76,364       244,110       239,093  
Labor
    101,620       95,713       308,390       294,531  
Operating
    52,058       50,883       156,408       150,383  
Occupancy
    18,504       17,566       54,951       52,347  
General and administrative
    23,226       20,408       62,044       60,745  
Depreciation and amortization
    19,318       19,055       57,654       56,126  
Preopening expense
    572       1,550       1,537       2,499  
Partner investment expense
    (147 )     18       (271 )     (537 )
 
                       
Total costs and expenses
    293,531       281,557       884,823       855,187  
 
                       
Income from operations
    14,879       8,772       46,796       46,339  
Interest and other income (expense), net
    175       85       (905 )     (1,292 )
 
                       
Income from continuing operations before taxes
    15,054       8,857       45,891       45,047  
Provision for income taxes
    (4,417 )     (2,477 )     (13,349 )     (12,538 )
 
                       
Income from continuing operations, net of tax
    10,637       6,380       32,542       32,509  
Income (loss) from discontinued operations, net of tax
          (17 )     6       (534 )
 
                       
Net income
    10,637       6,363       32,548       31,975  
Less: Net income attributable to noncontrolling interests
    172       155       619       813  
 
                       
Net income attributable to PFCB
  $ 10,465     $ 6,208     $ 31,929     $ 31,162  
 
                       
 
                               
Basic income per share:
                               
Income from continuing operations attributable to PFCB common stockholders
  $ 0.46     $ 0.27     $ 1.41     $ 1.38  
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders
    0.00       0.00       0.00       (0.03 )
 
                       
Net income attributable to PFCB common stockholders
  $ 0.46     $ 0.27     $ 1.41     $ 1.35  
 
                       
 
                               
Diluted income per share:
                               
Income from continuing operations attributable to PFCB common stockholders
  $ 0.45     $ 0.27     $ 1.38     $ 1.35  
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders
    0.00       0.00       0.00       (0.03 )
 
                       
Net income attributable to PFCB common stockholders
  $ 0.45     $ 0.27     $ 1.38     $ 1.32  
 
                       
 
                               
Weighted average shares used in computation:
                               
Basic
    22,697       22,810       22,719       23,103  
 
                       
Diluted
    23,070       23,285       23,150       23,535  
 
                       
 
                               
Cash dividends declared per share
  $ 0.21     $     $ 0.63     $  
 
                       
 
                               
Amounts attributable to PFCB:
                               
Income from continuing operations, net of tax
  $ 10,465     $ 6,225     $ 31,923     $ 31,696  
Income (loss) from discontinued operations, net of tax
          (17 )     6       (534 )
 
                       
Net income attributable to PFCB
  $ 10,465     $ 6,208     $ 31,929     $ 31,162  
 
                       

 

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P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
                                                                                 
    2008     1Q09     2Q09     3Q09     4Q09     2009     1Q10     2Q10     3Q10     YTD Q3 2010  
 
                                                                               
Units
    348       350       351       356       363       363       364       366       368       368  
Sales weeks
    17,170       4,531       4,563       4,604       5,058       18,756       4,731       4,736       4,770       14,237  
AWS
    69,780       68,382       66,044       63,060       64,581       65,482       65,604       66,055       64,656       65,436  
 
                                                                               
Revenues (1)
    1,198,124       309,837       301,360       290,329       326,653       1,228,179       310,371       312,838       308,410       931,619  
 
                                                                               
Operating costs
                                                                               
Cost of sales
    325,630       83,072       79,657       76,364       87,328       326,421       84,013       81,717       78,380       244,110  
Labor
    396,911       100,707       98,111       95,713       107,052       401,583       104,475       102,295       101,620       308,390  
Operating
    198,967       50,691       48,809       50,883       53,476       203,859       52,753       51,597       52,058       156,408  
Occupancy
    69,809       17,378       17,403       17,566       18,288       70,635       17,838       18,609       18,504       54,951  
Net income attributable to noncontrolling interests
    1,933       370       288       155       595       1,408       206       241       172       619  
Depreciation & amortization
    68,711       18,496       18,575       19,055       18,303       74,429       19,001       19,335       19,318       57,654  
Restaurant operating income
    136,163       39,123       38,517       30,593       41,611       149,844       32,085       39,044       38,358       109,487  
 
                                                                               
Development costs
                                                                               
Preopening expenses
    8,457       488       461       1,550       1,420       3,919       133       832       572       1,537  
Partner investment expense
    (354 )     (464 )     (91 )     18       (92 )     (629 )     11       (135 )     (147 )     (271 )
 
                                                                               
Other expenses
                                                                               
General and administrative (2)
    77,488       19,814       20,523       20,408       22,004       82,749       19,053       19,765       23,226       62,044  
Interest and other (income) expense, net
    3,362       940       437       (85 )     345       1,637       415       665       (175 )     905  
Provision for income taxes
    12,193       4,953       5,108       2,477       5,954       18,492       3,788       5,144       4,417       13,349  
Income from continuing operations
    35,017       13,392       12,079       6,225       11,980       43,676       8,685       12,773       10,465       31,923  
Income (loss) from discontinued operations, net of tax
    (7,591 )     (43 )     (474 )     (17 )     55       (479 )     6                   6  
Net income attributable to PFCB
    27,426       13,349       11,605       6,208       12,035       43,197       8,691       12,773       10,465       31,929  
 
                                                                               
Income from continuing operations per FDS
  $ 1.45     $ 0.56     $ 0.51     $ 0.27     $ 0.52     $ 1.87     $ 0.38     $ 0.55     $ 0.45     $ 1.38  
 
                                                                               
Fully diluted shares (FDS)
    24,080       23,795       23,526       23,285       23,045       23,413       23,104       23,277       23,070       23,150  
 
                                                                               
Revenues
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
Cost of sales
    27.2 %     26.8 %     26.4 %     26.3 %     26.7 %     26.6 %     27.1 %     26.1 %     25.4 %     26.2 %
Labor
    33.1 %     32.5 %     32.6 %     33.0 %     32.8 %     32.7 %     33.7 %     32.7 %     32.9 %     33.1 %
Operating
    16.6 %     16.4 %     16.2 %     17.5 %     16.4 %     16.6 %     17.0 %     16.5 %     16.9 %     16.8 %
Occupancy
    5.8 %     5.6 %     5.8 %     6.1 %     5.6 %     5.8 %     5.7 %     5.9 %     6.0 %     5.9 %
Net income attributable to noncontrolling interests
    0.2 %     0.1 %     0.1 %     0.1 %     0.2 %     0.1 %     0.1 %     0.1 %     0.1 %     0.1 %
Depreciation & amortization
    5.7 %     6.0 %     6.2 %     6.6 %     5.6 %     6.1 %     6.1 %     6.2 %     6.3 %     6.2 %
 
                                                           
Restaurant operating income
    11.4 %     12.6 %     12.8 %     10.5 %     12.7 %     12.2 %     10.3 %     12.5 %     12.4 %     11.8 %
 
                                                           
Preopening expenses
    0.7 %     0.2 %     0.2 %     0.5 %     0.4 %     0.3 %     0.0 %     0.3 %     0.2 %     0.2 %
Partner investment expense
    (0.0 %)     (0.1 %)     (0.0 %)     0.0 %     (0.0 %)     (0.1 %)     0.0 %     (0.0 %)     (0.0 %)     (0.0 %)
General and administrative (2)
    6.5 %     6.4 %     6.8 %     7.0 %     6.7 %     6.7 %     6.1 %     6.3 %     7.5 %     6.7 %
Interest and other (income) expense, net
    0.3 %     0.3 %     0.1 %     (0.0 %)     0.1 %     0.1 %     0.1 %     0.2 %     (0.1 %)     0.1 %
Provision for income taxes
    1.0 %     1.6 %     1.7 %     0.9 %     1.8 %     1.5 %     1.2 %     1.6 %     1.4 %     1.4 %
 
                                                           
Income from continuing operations
    2.9 %     4.3 %     4.0 %     2.1 %     3.7 %     3.6 %     2.8 %     4.1 %     3.4 %     3.4 %
 
                                                           
Income (loss) from discontinued operations, net of tax
    (0.6 %)     (0.0 %)     (0.2 %)     (0.0 %)     0.0 %     (0.0 %)     0.0 %     0.0 %     0.0 %     0.0 %
 
                                                           
Net income attributable to PFCB
    2.3 %     4.3 %     3.9 %     2.1 %     3.7 %     3.5 %     2.8 %     4.1 %     3.4 %     3.4 %
 
                                                           
 
                                                                               
Reconciliation of Non-GAAP Financial Information to GAAP measures:
                                                                               
Restaurant operating income
    136,163       39,123       38,517       30,593       41,611       149,844       32,085       39,044       38,358       109,487  
Add: Net income attributable to noncontrolling interests
    1,933       370       288       155       595       1,408       206       241       172       619  
Less: General and administrative (2)
    (77,488 )     (19,814 )     (20,523 )     (20,408 )     (22,004 )     (82,749 )     (19,053 )     (19,765 )     (23,226 )     (62,044 )
Less: Preopening expenses
    (8,457 )     (488 )     (461 )     (1,550 )     (1,420 )     (3,919 )     (133 )     (832 )     (572 )     (1,537 )
Less: Partner investment expense
    354       464       91       (18 )     92       629       (11 )     135       147       271  
 
                                                           
Income from operations
    52,505       19,655       17,912       8,772       18,874       65,213       13,094       18,823       14,879       46,796  
 
                                                           
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

 

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Concept: P.F. Chang’s China Bistro
Supplemental Financial Information
                                                                                 
    2008     1Q09     2Q09     3Q09     4Q09     2009     1Q10     2Q10     3Q10     YTD Q3 2010  
 
                                                                               
Units
    189       190       190       192       197       197       197       199       200       200  
Sales weeks
    9,373       2,458       2,470       2,486       2,736       10,150       2,561       2,565       2,593       7,719  
AWS
    98,127       95,661       91,958       87,324       89,884       91,161       90,077       90,964       89,202       90,078  
Revenues
    919,963       235,141       227,144       217,093       245,943       925,321       230,767       233,365       231,309       695,441  
 
                                                                               
Operating costs
                                                                               
Cost of sales
    249,911       62,963       59,749       56,624       65,480       244,816       62,711       60,914       58,135       181,760  
Labor
    301,967       76,051       73,286       71,216       80,222       300,775       78,192       76,769       76,533       231,494  
Operating
    149,083       36,973       36,373       37,487       40,050       150,883       38,546       38,183       38,554       115,283  
Occupancy
    50,670       12,441       12,412       12,390       12,943       50,186       12,640       13,254       13,242       39,136  
Net income attributable to noncontrolling interests
    1,361       179       145       104       110       538       71       93       62       226  
Depreciation & amortization
    51,091       13,728       13,646       13,900       13,247       54,521       13,854       14,043       14,018       41,915  
Restaurant operating income
    115,880       32,806       31,533       25,372       33,891       123,602       24,753       30,109       30,765       85,627  
 
                                                                               
Revenues
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
Cost of sales
    27.2 %     26.8 %     26.3 %     26.1 %     26.6 %     26.5 %     27.2 %     26.1 %     25.1 %     26.1 %
Labor
    32.8 %     32.3 %     32.3 %     32.8 %     32.6 %     32.5 %     33.9 %     32.9 %     33.1 %     33.3 %
Operating
    16.2 %     15.7 %     16.0 %     17.3 %     16.3 %     16.3 %     16.7 %     16.4 %     16.7 %     16.6 %
Occupancy
    5.5 %     5.3 %     5.5 %     5.7 %     5.3 %     5.4 %     5.5 %     5.7 %     5.7 %     5.6 %
Net income attributable to noncontrolling interests
    0.1 %     0.1 %     0.1 %     0.0 %     0.0 %     0.1 %     0.0 %     0.0 %     0.0 %     0.0 %
Depreciation & amortization
    5.6 %     5.8 %     6.0 %     6.4 %     5.4 %     5.9 %     6.0 %     6.0 %     6.1 %     6.0 %
 
                                                           
Restaurant operating income
    12.6 %     14.0 %     13.9 %     11.7 %     13.8 %     13.4 %     10.7 %     12.9 %     13.3 %     12.3 %
 
                                                           
 
                                                                               
Reconciliation of Non-GAAP Financial Information to GAAP measures:
                                                                               
Restaurant operating income
    115,880       32,806       31,533       25,372       33,891       123,602       24,753       30,109       30,765       85,627  
Add: Net income attributable to noncontrolling interests
    1,361       179       145       104       110       538       71       93       62       226  
Less: Preopening expenses
    (5,677 )     (294 )     (280 )     (1,004 )     (1,257 )     (2,835 )     (26 )     (765 )     (411 )     (1,202 )
Less: Partner investment expense
    1,066       148       20             68       236                          
 
                                                           
Income from operations
    112,630       32,839       31,418       24,472       32,812       121,541       24,798       29,437       30,416       84,651  
 
                                                           
Note: General and administrative expenses are reflected in the Company’s consolidated results

 

Page 6 of 9


 

Concept: Pei Wei Asian Diner (A)
Supplemental Financial Information
                                                                                 
    2008     1Q09     2Q09     3Q09     4Q09     2009     1Q10     2Q10     3Q10     YTD Q3 2010  
 
                                                                               
Units
    159       160       161       164       166       166       167       167       168       168  
Sales weeks
    7,797       2,073       2,093       2,118       2,322       8,606       2,170       2,171       2,177       6,518  
AWS
    35,675       36,011       35,459       34,578       34,701       35,171       36,597       35,991       34,998       35,861  
Revenues
    278,161       74,696       74,216       73,236       80,576       302,724       79,475       78,137       76,190       233,802  
 
                                                                               
Operating costs
                                                                               
Cost of sales
    75,719       20,109       19,908       19,740       21,848       81,605       21,302       20,803       20,245       62,350  
Labor
    94,944       24,656       24,825       24,497       26,830       100,808       26,283       25,526       25,087       76,896  
Operating
    49,884       13,718       12,436       13,396       13,426       52,976       14,207       13,414       13,504       41,125  
Occupancy
    19,139       4,937       4,991       5,176       5,345       20,449       5,198       5,355       5,262       15,815  
Net income attributable to noncontrolling interests
    572       191       143       51       485       870       135       148       110       393  
Depreciation & amortization
    16,158       4,350       4,440       4,647       4,666       18,103       4,647       4,762       4,772       14,181  
Restaurant operating income
    21,745       6,735       7,473       5,729       7,976       27,913       7,703       8,129       7,210       23,042  
 
                                                                               
Revenues
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
Cost of sales
    27.2 %     26.9 %     26.8 %     27.0 %     27.1 %     27.0 %     26.8 %     26.6 %     26.6 %     26.7 %
Labor
    34.1 %     33.0 %     33.4 %     33.4 %     33.3 %     33.3 %     33.1 %     32.7 %     32.9 %     32.9 %
Operating
    17.9 %     18.4 %     16.8 %     18.3 %     16.7 %     17.5 %     17.9 %     17.2 %     17.7 %     17.6 %
Occupancy
    6.9 %     6.6 %     6.7 %     7.1 %     6.6 %     6.8 %     6.5 %     6.9 %     6.9 %     6.8 %
Net income attributable to noncontrolling interests
    0.2 %     0.3 %     0.2 %     0.1 %     0.6 %     0.3 %     0.2 %     0.2 %     0.1 %     0.2 %
Depreciation & amortization
    5.8 %     5.8 %     6.0 %     6.3 %     5.8 %     6.0 %     5.8 %     6.1 %     6.3 %     6.1 %
 
                                                           
Restaurant operating income
    7.8 %     9.0 %     10.1 %     7.8 %     9.9 %     9.2 %     9.7 %     10.4 %     9.5 %     9.9 %
 
                                                           
 
                                                                               
Reconciliation of Non-GAAP Financial Information to GAAP measures:
                                                                               
Restaurant operating income
    21,745       6,735       7,473       5,729       7,976       27,913       7,703       8,129       7,210       23,042  
Add: Net income attributable to noncontrolling interests
    572       191       143       51       485       870       135       148       110       393  
Less: Preopening expenses
    (2,780 )     (194 )     (181 )     (546 )     (163 )     (1,084 )     (107 )     (67 )     (161 )     (335 )
Less: Partner investment expense
    (712 )     316       71       (18 )     24       393       (11 )     135       147       271  
 
                                                           
Income from operations
    18,825       7,048       7,506       5,216       8,322       28,092       7,720       8,345       7,306       23,371  
 
                                                           
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 7 of 9


 

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     2010     Total  
Units
    64       14       18       18       18       20       20       17       8       3       200  
 
                                                                                       
    Sales (000)
       
1Q10
    84,443       16,452       22,541       18,179       18,840       21,713       22,542       16,961       9,017             230,688  
2Q10
    84,934       16,111       22,795       19,015       19,043       21,928       22,913       17,483       8,620       481       233,323  
3Q10
    83,188       15,716       22,409       19,012       18,444       21,239       22,410       17,016       8,433       3,433       231,300  
 
                                                                                       
2010
    252,565       48,279       67,745       56,206       56,327       64,880       67,865       51,460       26,070       3,914       695,311  
 
                                                                                       
    Average Weekly Sales (AWS)
       
1Q10
    101,494       90,396       96,331       77,688       80,514       83,510       86,700       76,747       86,697             90,077  
2Q10
    102,084       88,522       97,414       81,262       81,380       84,339       88,125       79,106       82,887       120,210       90,964  
3Q10
    99,985       86,354       95,765       81,246       78,820       81,688       86,194       76,997       81,088       107,269       89,202  
 
                                                                                       
2010
    101,188       88,424       96,503       80,065       80,238       83,179       87,006       77,617       83,557       108,707       90,078  
 
                                                                                       
    Year-Over-Year Change Comparable Store Sales (2)(3)
       
Units
    64       14       18       18       18       20       20       17       1             190  
1Q10
    -4.0 %     -3.0 %     -1.7 %     -1.5 %     -1.8 %     -0.7 %     -0.9 %     -5.1 %                 -2.7 %
2Q10
    -1.0 %     0.2 %     1.1 %     2.4 %     1.0 %     1.8 %     1.1 %     -2.7 %                 0.1 %
3Q10
    1.4 %     2.8 %     3.0 %     3.7 %     2.7 %     3.6 %     3.2 %     1.6 %     -13.9 %           2.3 %
 
                                                                                       
2010
    -1.3 %     -0.1 %     0.7 %     1.5 %     0.6 %     1.5 %     1.1 %     -1.7 %     -13.9 %           -0.1 %
     
(1)  
Includes all restaurants opened in the period indicated.
 
(2)  
A unit becomes comparable in the eighteenth month of operation.
 
(3)  
Comparable store sales for each quarter of fiscal 2010 reflect results from the 13 week operating period in the current year compared to the same 13 week operating period in the prior year. Comparable store sales for the first three quarters of fiscal 2010 reflect results from the 39 week operating period in the current year compared to the same 39 week operating period in the prior year.

 

Page 8 of 9


 

Pei Wei Asian Diner
Supplemental Sales Information
Year of Unit Opening (1)
                                                                                         
    Pre-2002     2002     2003     2004     2005     2006     2007     2008     2009     2010     Total  
Units
    5       11       17       19       23       27       32       25       7       2       168  
 
                                                                                       
    Sales (000)
       
1Q10
    2,748       5,557       8,770       10,017       11,151       13,175       13,954       10,399       3,075       570       79,416  
2Q10
    2,587       5,240       8,566       9,865       11,038       13,093       13,798       10,434       3,005       511       78,137  
3Q10
    2,463       5,050       8,260       9,583       10,813       12,898       13,417       10,079       2,900       726       76,190  
 
                                                                                       
2010
    7,798       15,847       25,596       29,465       33,002       39,166       41,169       30,912       8,980       1,807       233,743  
 
                                                                                       
    Average Weekly Sales (AWS)
       
1Q10
    42,270       38,861       39,683       40,556       37,295       37,535       33,543       31,997       33,796       47,443       36,597  
2Q10
    39,801       36,645       38,762       39,938       36,915       37,302       33,169       32,104       33,025       39,308       35,991  
3Q10
    37,893       35,317       37,374       38,797       36,165       36,747       32,253       31,013       31,864       38,211       34,998  
 
                                                                                       
2010
    39,988       36,941       38,606       39,764       36,792       37,195       32,988       31,705       32,895       41,068       35,861  
 
                                                                                       
    Year-Over-Year Change Comparable Store Sales (2)(3)
       
Units
    5       11       17       19       23       27       32       25       2             161  
1Q10
    1.8 %     0.6 %     0.7 %     -0.2 %     2.5 %     3.5 %     4.1 %     2.4 %                 2.2 %
2Q10
    1.4 %     0.2 %     2.3 %     1.7 %     3.1 %     4.2 %     3.7 %     3.8 %                 3.0 %
3Q10
    -0.6 %     -1.3 %     -0.2 %     -0.9 %     1.1 %     1.9 %     1.2 %     2.9 %     -2.6 %           0.8 %
 
                                                                                       
2010
    0.9 %     -0.1 %     0.9 %     0.2 %     2.2 %     3.2 %     3.0 %     3.0 %     -2.6 %           2.0 %
     
(1)  
Includes all restaurants opened in the period indicated.
 
(2)  
A unit becomes comparable in the eighteenth month of operation.
 
(3)  
Comparable store sales for each quarter of fiscal 2010 reflect results from the 13 week operating period in the current year compared to the same 13 week operating period in the prior year. Comparable store sales for the first three quarters of fiscal 2010 reflect results from the 39 week operating period in the current year compared to the same 39 week operating period in the prior year.

 

Page 9 of 9