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8-K - FORM 8-K - P F CHANGS CHINA BISTRO INCc12980e8vk.htm
EX-99.2 - EX-99.2 - P F CHANGS CHINA BISTRO INCc12980exv99w2.htm
Exhibit 99.1
P.F. Chang’s China Bistro, Inc.
P.F. CHANG’S REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2010 RESULTS
SCOTTSDALE, ARIZONA, February 16, 2011 — P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the fourth quarter and fiscal year ended January 2, 2011.
                                                 
    13 Weeks     14 Weeks             52 Weeks     53 Weeks        
(000 except per share data)   Q4 2010     Q4 2009     % Change     FY 2010     FY 2009     % Change  
Revenues
  $ 311,180     $ 326,653       -4.7 %   $ 1,242,799     $ 1,228,179       1.2 %
 
                                               
Income from continuing operations
  $ 14,639     $ 11,980       22.2 %   $ 46,562     $ 43,676       6.6 %
Net income
  $ 14,679     $ 12,035       22.0 %   $ 46,608     $ 43,197       7.9 %
 
                                               
Diluted income per share:
                                               
Income from continuing operations
  $ 0.64     $ 0.52       23.1 %   $ 2.01     $ 1.87       7.5 %
Net income
  $ 0.64     $ 0.52       23.1 %   $ 2.02     $ 1.85       9.2 %
Highlights for the fourth quarter of 2010 compared to the prior year quarter include:
   
Consolidated revenues declined 4.7% to $311.2 million including the impact of one less operating week during the fourth quarter of fiscal 2010.
   
Comparable store sales increased 0.1% at the Bistro and 1.3% at Pei Wei.
   
Net income increased 22.0% to $14.7 million.
   
Net income per diluted share increased 23.1% to $0.64.
Highlights for fiscal 2010 compared to prior year include:
   
Consolidated revenues increased 1.2% to $1,242.8 million including the impact of one less operating week during fiscal 2010 compared to fiscal 2009.
   
Comparable store sales declined 0.1% at the Bistro and increased 1.8% at Pei Wei.
   
Net income increased 7.9% to $46.6 million.
   
Net income per diluted share increased 9.2% to $2.02.
Fourth quarter comparable store sales
                                 
    Fiscal 2010  
    October     November     December     Total Q4  
Bistro
                               
Traffic effect
    0.5 %     -0.3 %     -2.8 %     -0.9 %
Average ticket effect
    0.3 %     0.8 %     1.9 %     1.0 %
 
                       
Total comparable store sales
    0.8 %     0.5 %     -0.9 %     0.1 %
 
                       
 
                               
Pei Wei
                               
Traffic effect
    -1.1 %     -1.5 %     0.0 %     -0.9 %
Average ticket effect
    2.2 %     2.2 %     2.2 %     2.2 %
 
                       
Total comparable store sales
    1.1 %     0.7 %     2.2 %     1.3 %
 
                       
Bistro
The Bistro achieved positive same store sales in the fourth quarter of 2010. Average ticket at the Bistro was positive during the quarter due to the benefit of a menu price increase combined with improvements in high dollar transactions. Traffic declined during the fourth quarter partially due to the impact of severe winter weather in late December.

 


 

Pei Wei
Pei Wei achieved positive same store sales in the fourth quarter of 2010. Average ticket at Pei Wei was positive for the entire quarter including the collective impact of incremental sales of small plate menu items, greater online ordering usage and the benefit of a menu price increase.
Comparable store sales for the fourth 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 December 2010 reflect results from the 4 week operating period in the current year compared to the same 4 week operating period in the prior year.
Global Brand Development
Global Brand Development revenues totaled $0.9 million for the fourth quarter of 2010 related to fees from seven international Bistro restaurants and a retail 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.
Quarterly dividend
The Company’s Board of Directors authorized a cash dividend payment of $0.29 per share on the Company’s outstanding common stock. The dividend is payable on March 14, 2011 to shareholders of record at the close of business on February 28, 2011. The amount of the cash dividend was computed based on 45% of the Company’s net income for the quarter ended January 2, 2011.
2011 expectations
The Company anticipates that fiscal 2011 consolidated revenues will increase approximately three to four percent compared to fiscal 2010 due to expectations of positive same store sales at both concepts combined with revenues from nine to thirteen anticipated new restaurant openings during fiscal 2011 and the benefit of a full year of revenues for restaurants that opened during fiscal 2010.
The Company expects to experience higher commodity costs and increased labor wage rates during fiscal 2011 which will be partially offset with a slight menu price increase at both concepts. Despite these cost pressures, the Company anticipates that fiscal 2011 restaurant operating margins will increase compared to fiscal 2010, primarily due to lapping the impact of the first quarter 2010 Bistro Happy Hour rollout combined with a higher contribution from Global Brand Development businesses. In addition, the Company expects an increase in general and administrative expenses in fiscal 2011, primarily related to higher share-based compensation expense.
The Company expects to open three to five new Bistro restaurants and six to eight 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.
The Company plans to repurchase approximately $60 million in common shares under its current authorization during fiscal 2011.
Overall, the Company expects consolidated diluted earnings per share to range from $2.15 to $2.20 for fiscal 2011, an increase of approximately 10%.
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.

 

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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.
Financial reporting dates in fiscal 2011
The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2011 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 3, 2011
  April 27, 2011
July 3, 2011
  July 27, 2011
October 2, 2011
  October 26, 2011
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. 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 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 extension of 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 6 through 8 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.

 

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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; damage to our brands or reputation; development is critical to the Company’s long-term success; changes in general economic conditions and dependence on sales concentrated in certain geographic areas; intense competition in the restaurant industry; changes in government legislation that may increase labor costs; 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; federal and state tax rules could negatively impact results of operations and financial position; fluctuating insurance requirements and costs; seasonality of the Company’s business; adverse impact if information technology and computer systems do not perform properly and other risks described in the Company’s recent SEC filings.
Contacts:
             
Investor:
  Allison Schulder   (480) 888-3000   allison.schulder@pfcb.com
 
Media:
  Rachel Gillman
Dig Communications
  (312) 577-1759   rgillman@digcommunications.com

 

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P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations

(In thousands, except per share amounts)
(Unaudited)
                                 
    13 Weeks     14 Weeks     52 Weeks     53 Weeks  
    Ended     Ended     Ended     Ended  
    January 2,     January 3,     January 2,     January 3,  
    2011     2010     2011     2010  
Revenues
  $ 311,180     $ 326,653     $ 1,242,799     $ 1,228,179  
Costs and expenses:
                               
Cost of sales
    80,621       87,328       324,731     326,421  
Labor
    101,610       107,052       410,000     401,583  
Operating
    51,886       53,476       208,294     203,859  
Occupancy
    18,756       18,288       73,707     70,635  
General and administrative
    19,839       22,004       81,883     82,749  
Depreciation and amortization
    19,832       18,303       77,486     74,429  
Preopening expense
    439       1,420       1,976     3,919  
Partner investment expense
    (47 )     (92 )     (318 )   (629 )
 
                       
Total costs and expenses
    292,936       307,779       1,177,759       1,162,966  
 
                       
Income from operations
    18,244       18,874       65,040       65,213  
Interest and other income (expense), net
    333       (345 )     (572 )     (1,637 )
 
                       
Income from continuing operations before taxes
    18,577       18,529       64,468       63,576  
Provision for income taxes
    (3,773 )     (5,954 )     (17,122 )     (18,492 )
 
                       
Income from continuing operations, net of tax
    14,804       12,575       47,346       45,084  
Income (loss) from discontinued operations, net of tax
    40       55       46       (479 )
 
                       
Net income
    14,844       12,630       47,392       44,605  
Less: Net income attributable to noncontrolling interests
    165       595       784       1,408  
 
                       
Net income attributable to PFCB
  $ 14,679     $ 12,035     $ 46,608     $ 43,197  
 
                       
 
                               
Basic income per share:
                               
Income from continuing operations attributable to PFCB common stockholders
  $ 0.65     $ 0.53     $ 2.05     $ 1.90  
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders
    0.00       0.00       0.00       (0.02 )
 
                       
Net income attributable to PFCB common stockholders
  $ 0.65     $ 0.53     $ 2.05     $ 1.88  
 
                       
 
                               
Diluted income per share:
                               
Income from continuing operations attributable to PFCB common stockholders
  $ 0.64     $ 0.52     $ 2.01     $ 1.87  
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders
    0.00       0.00       0.01       (0.02 )
 
                       
Net income attributable to PFCB common stockholders
  $ 0.64     $ 0.52     $ 2.02     $ 1.85  
 
                       
 
                               
Weighted average shares used in computation:
                               
Basic
    22,599       22,633       22,689       22,986  
 
                       
Diluted
    23,011       23,045       23,115       23,413  
 
                       
 
                               
Cash dividends declared per share
  $ 0.29     $     $ 0.92     $  
 
                       
 
                               
Amounts attributable to PFCB:
                               
Income from continuing operations, net of tax
  $ 14,639     $ 11,980     $ 46,562     $ 43,676  
Income (loss) from discontinued operations, net of tax
    40       55       46       (479 )
 
                       
Net income attributable to PFCB
  $ 14,679     $ 12,035     $ 46,608     $ 43,197  
 
                       

 

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P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
                                                                                         
    2008     1Q09     2Q09     3Q09     4Q09     2009     1Q10     2Q10     3Q10     4Q10     YTD Q4 2010  
 
                                                                                       
Units
    348       350       351       356       363       363       364       366       368       369       369  
Sales weeks
    17,170       4,531       4,563       4,604       5,058       18,756       4,731       4,736       4,770       4,791       19,028  
AWS
    69,780       68,382       66,044       63,060       64,581       65,482       65,604       66,055       64,656       64,951       65,314  
 
                                                                                       
Revenues (1)
    1,198,124       309,837       301,360       290,329       326,653       1,228,179       310,371       312,838       308,410       311,180       1,242,799  
 
                                                                                       
Operating costs
                                                                                       
Cost of sales
    325,630       83,072       79,657       76,364       87,328       326,421       84,013       81,717       78,380       80,621       324,731  
Labor
    396,911       100,707       98,111       95,713       107,052       401,583       104,475       102,295       101,620       101,610       410,000  
Operating
    198,967       50,691       48,809       50,883       53,476       203,859       52,753       51,597       52,058       51,886       208,294  
Occupancy
    69,809       17,378       17,403       17,566       18,288       70,635       17,838       18,609       18,504       18,756       73,707  
Net income attributable to noncontrolling interests
    1,933       370       288       155       595       1,408       206       241       172       165       784  
Depreciation & amortization
    68,711       18,496       18,575       19,055       18,303       74,429       19,001       19,335       19,318       19,832       77,486  
Restaurant operating income
    136,163       39,123       38,517       30,593       41,611       149,844       32,085       39,044       38,358       38,310       147,797  
 
                                                                                       
Development costs
                                                                                       
Preopening expenses
    8,457       488       461       1,550       1,420       3,919       133       832       572       439       1,976  
Partner investment expense
    (354 )     (464 )     (91 )     18       (92 )     (629 )     11       (135 )     (147 )     (47 )     (318 )
 
                                                                                       
Other expenses
                                                                                       
General and administrative (2)
    77,488       19,814       20,523       20,408       22,004       82,749       19,053       19,765       23,226       19,839       81,883  
Interest and other (income) expense, net
    3,362       940       437       (85 )     345       1,637       415       665       (175 )     (333 )     572  
Provision for income taxes
    12,193       4,953       5,108       2,477       5,954       18,492       3,788       5,144       4,417       3,773       17,122  
Income from continuing operations
    35,017       13,392       12,079       6,225       11,980       43,676       8,685       12,773       10,465       14,639       46,562  
Income (loss) from discontinued operations, net of tax
    (7,591 )     (43 )     (474 )     (17 )     55       (479 )     6                   40       46  
Net income attributable to PFCB
    27,426       13,349       11,605       6,208       12,035       43,197       8,691       12,773       10,465       14,679       46,608  
 
                                                                                       
Income from continuing operations per FDS
  $ 1.45     $ 0.56     $ 0.51     $ 0.27     $ 0.52     $ 1.87     $ 0.38     $ 0.55     $ 0.45     $ 0.64     $ 2.01  
 
                                                                                       
Fully diluted shares (FDS)
    24,080       23,795       23,526       23,285       23,045       23,413       23,104       23,277       23,070       23,011       23,115  
 
                                                                                       
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
    27.2 %     26.8 %     26.4 %     26.3 %     26.7 %     26.6 %     27.1 %     26.1 %     25.4 %     25.9 %     26.1 %
Labor
    33.1 %     32.5 %     32.6 %     33.0 %     32.8 %     32.7 %     33.7 %     32.7 %     32.9 %     32.7 %     33.0 %
Operating
    16.6 %     16.4 %     16.2 %     17.5 %     16.4 %     16.6 %     17.0 %     16.5 %     16.9 %     16.7 %     16.8 %
Occupancy
    5.8 %     5.6 %     5.8 %     6.1 %     5.6 %     5.8 %     5.7 %     5.9 %     6.0 %     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 %     0.1 %
Depreciation & amortization
    5.7 %     6.0 %     6.2 %     6.6 %     5.6 %     6.1 %     6.1 %     6.2 %     6.3 %     6.4 %     6.2 %
 
                                                                 
Restaurant operating income
    11.4 %     12.6 %     12.8 %     10.5 %     12.7 %     12.2 %     10.3 %     12.5 %     12.4 %     12.3 %     11.9 %
 
                                                                 
Preopening expenses
    0.7 %     0.2 %     0.2 %     0.5 %     0.4 %     0.3 %     0.0 %     0.3 %     0.2 %     0.1 %     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 %)     (0.0 %)
General and administrative (2)
    6.5 %     6.4 %     6.8 %     7.0 %     6.7 %     6.7 %     6.1 %     6.3 %     7.5 %     6.4 %     6.6 %
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 %)     0.0 %
Provision for income taxes
    1.0 %     1.6 %     1.7 %     0.9 %     1.8 %     1.5 %     1.2 %     1.6 %     1.4 %     1.2 %     1.4 %
 
                                                                 
Income from continuing operations
    2.9 %     4.3 %     4.0 %     2.1 %     3.7 %     3.6 %     2.8 %     4.1 %     3.4 %     4.7 %     3.7 %
 
                                                                 
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 %     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 %     4.7 %     3.8 %
 
                                                                 
 
                                                                                       
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       38,310       147,797  
Add: Net income attributable to noncontrolling interests
    1,933       370       288       155       595       1,408       206       241       172       165       784  
Less: General and administrative (2)
    (77,488 )     (19,814 )     (20,523 )     (20,408 )     (22,004 )     (82,749 )     (19,053 )     (19,765 )     (23,226 )     (19,839 )     (81,883 )
Less: Preopening expenses
    (8,457 )     (488 )     (461 )     (1,550 )     (1,420 )     (3,919 )     (133 )     (832 )     (572 )     (439 )     (1,976 )
Less: Partner investment expense
    354       464       91       (18 )     92       629       (11 )     135       147       47       318  
 
                                                                 
Income from operations
    52,505       19,655       17,912       8,772       18,874       65,213       13,094       18,823       14,879       18,244       65,040  
 
                                                                 
 
     
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 as well as Global Brand Development initiatives

 

Page 6 of 10


 

Concept: P.F. Chang’s China Bistro
Supplemental Financial Information
                                                                                         
    2008     1Q09     2Q09     3Q09     4Q09     2009     1Q10     2Q10     3Q10     4Q10     YTD Q4 2010  
 
                                                                                       
Units
    189       190       190       192       197       197       197       199       200       201       201  
Sales weeks
    9,373       2,458       2,470       2,486       2,736       10,150       2,561       2,565       2,593       2,607       10,326  
AWS
    98,127       95,661       91,958       87,324       89,884       91,161       90,077       90,964       89,202       89,726       89,989  
Revenues
    919,963       235,141       227,144       217,093       245,943       925,321       230,767       233,365       231,309       233,931       929,372  
 
                                                                                       
Operating costs
                                                                                       
Cost of sales
    249,911       62,963       59,749       56,624       65,480       244,816       62,711       60,914       58,135       60,008       241,768  
Labor
    301,967       76,051       73,286       71,216       80,222       300,775       78,192       76,769       76,533       76,667       308,161  
Operating
    149,083       36,973       36,373       37,487       40,050       150,883       38,546       38,183       38,554       37,804       153,087  
Occupancy
    50,670       12,441       12,412       12,390       12,943       50,186       12,640       13,254       13,242       13,368       52,504  
Net income attributable to noncontrolling interests
    1,361       179       145       104       110       538       71       93       62       70       296  
Depreciation & amortization
    51,091       13,728       13,646       13,900       13,247       54,521       13,854       14,043       14,018       14,519       56,434  
Restaurant operating income
    115,880       32,806       31,533       25,372       33,891       123,602       24,753       30,109       30,765       31,495       117,122  
 
                                                                                       
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
    27.2 %     26.8 %     26.3 %     26.1 %     26.6 %     26.5 %     27.2 %     26.1 %     25.1 %     25.7 %     26.0 %
Labor
    32.8 %     32.3 %     32.3 %     32.8 %     32.6 %     32.5 %     33.9 %     32.9 %     33.1 %     32.8 %     33.2 %
Operating
    16.2 %     15.7 %     16.0 %     17.3 %     16.3 %     16.3 %     16.7 %     16.4 %     16.7 %     16.2 %     16.5 %
Occupancy
    5.5 %     5.3 %     5.5 %     5.7 %     5.3 %     5.4 %     5.5 %     5.7 %     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 %     0.0 %
Depreciation & amortization
    5.6 %     5.8 %     6.0 %     6.4 %     5.4 %     5.9 %     6.0 %     6.0 %     6.1 %     6.2 %     6.1 %
 
                                                                 
Restaurant operating income
    12.6 %     14.0 %     13.9 %     11.7 %     13.8 %     13.4 %     10.7 %     12.9 %     13.3 %     13.5 %     12.6 %
 
                                                                 
 
                                                                                       
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       31,495       117,122  
Add: Net income attributable to noncontrolling interests
    1,361       179       145       104       110       538       71       93       62       70       296  
Less: Preopening expenses
    (5,677 )     (294 )     (280 )     (1,004 )     (1,257 )     (2,835 )     (26 )     (765 )     (411 )     (265 )     (1,467 )
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       31,300       115,951  
 
                                                                 
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
                                                                                         
    2008     1Q09     2Q09     3Q09     4Q09     2009     1Q10     2Q10     3Q10     4Q10     YTD Q4 2010  
 
Units
    159       160       161       164       166       166       167       167       168       168       168  
Sales weeks
    7,797       2,073       2,093       2,118       2,322       8,606       2,170       2,171       2,177       2,184       8,702  
AWS
    35,675       36,011       35,459       34,578       34,701       35,171       36,597       35,991       34,998       34,950       35,632  
Revenues
    278,161       74,696       74,216       73,236       80,576       302,724       79,475       78,137       76,190       76,329       310,131  
 
                                                                                       
Operating costs
                                                                                       
Cost of sales
    75,719       20,109       19,908       19,740       21,848       81,605       21,302       20,803       20,245       20,613       82,963  
Labor
    94,944       24,656       24,825       24,497       26,830       100,808       26,283       25,526       25,087       24,943       101,839  
Operating
    49,884       13,718       12,436       13,396       13,426       52,976       14,207       13,414       13,504       14,082       55,207  
Occupancy
    19,139       4,937       4,991       5,176       5,345       20,449       5,198       5,355       5,262       5,388       21,203  
Net income attributable to noncontrolling interests
    572       191       143       51       485       870       135       148       110       95       488  
Depreciation & amortization
    16,158       4,350       4,440       4,647       4,666       18,103       4,647       4,762       4,772       4,761       18,942  
Restaurant operating income
    21,745       6,735       7,473       5,729       7,976       27,913       7,703       8,129       7,210       6,447       29,489  
 
                                                                                       
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
    27.2 %     26.9 %     26.8 %     27.0 %     27.1 %     27.0 %     26.8 %     26.6 %     26.6 %     27.0 %     26.8 %
Labor
    34.1 %     33.0 %     33.4 %     33.4 %     33.3 %     33.3 %     33.1 %     32.7 %     32.9 %     32.7 %     32.8 %
Operating
    17.9 %     18.4 %     16.8 %     18.3 %     16.7 %     17.5 %     17.9 %     17.2 %     17.7 %     18.4 %     17.8 %
Occupancy
    6.9 %     6.6 %     6.7 %     7.1 %     6.6 %     6.8 %     6.5 %     6.9 %     6.9 %     7.1 %     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 %     0.1 %     0.2 %
Depreciation & amortization
    5.8 %     5.8 %     6.0 %     6.3 %     5.8 %     6.0 %     5.8 %     6.1 %     6.3 %     6.2 %     6.1 %
 
                                                                 
Restaurant operating income
    7.8 %     9.0 %     10.1 %     7.8 %     9.9 %     9.2 %     9.7 %     10.4 %     9.5 %     8.4 %     9.5 %
 
                                                                 
 
                                                                                       
 
                                                                                       
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       6,447       29,489  
Add: Net income attributable to noncontrolling interests
    572       191       143       51       485       870       135       148       110       95       488  
Less: Preopening expenses
    (2,780 )     (194 )     (181 )     (546 )     (163 )     (1,084 )     (107 )     (67 )     (161 )     (174 )     (509 )
Less: Partner investment expense
    (712 )     316       71       (18 )     24       393       (11 )     135       147       47       318  
 
                                                                 
Income from operations
    18,825       7,048       7,506       5,216       8,322       28,092       7,720       8,345       7,306       6,415       29,786  
 
                                                                 
 
     
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     2010     Total  
Units   64     14     18     18     18     20     20     17     8     4     201  
 
                                                                                       
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  
4Q10
    84,993       16,280       22,489       18,539       18,639       21,607       22,143       17,058       8,100       4,068       233,916  
 
                                                                                       
2010
    337,558       64,559       90,234       74,745       74,966       86,487       90,008       68,518       34,170       7,982       929,227  
 
                                                                                       
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  
4Q10
    102,155       89,451       96,108       79,227       79,654       83,104       85,164       77,187       77,885       88,438       89,726  
 
                                                                                       
2010
    101,430       88,681       96,404       79,856       80,092       83,160       86,546       77,509       82,139       97,337       89,989  
 
                                                                                       
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 %
4Q10
    -0.6 %     1.2 %     0.6 %     1.4 %     0.0 %     1.7 %     -0.6 %     0.0 %     -12.5 %           0.1 %
 
                                                                                       
2010
    -1.1 %     0.2 %     0.7 %     1.5 %     0.4 %     1.6 %     0.7 %     -1.2 %     -13.0 %           -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 fiscal 2010 reflect results from the 52 week operating period in the current year compared to the same 52 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     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       13,418       10,079       2,900       726       76,190  
4Q10
    2,649       5,163       8,383       9,518       10,800       12,701       13,213       10,072       2,942       888       76,329  
 
                                                                                       
2010
    10,447       21,010       33,979       38,983       43,802       51,867       54,383       40,984       11,922       2,695       310,072  
 
                                                                                       
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  
4Q10
    40,753       36,103       37,930       38,534       36,122       36,185       31,763       30,991       32,330       34,154       34,950  
 
                                                                                       
2010
    40,179       36,731       38,437       39,456       36,624       36,942       32,682       31,526       32,754       38,505       35,632  
 
                                                                                       
Year-Over-Year Change Comparable Store Sales (2)(3)
Units
    5       11       17       19       23       27       32       25       4             163  
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 %
4Q10
    4.0 %     -0.3 %     1.1 %     1.5 %     1.7 %     1.1 %     0.3 %     2.7 %     2.5 %           1.3 %
 
                                                                                       
2010
    1.7 %     -0.2 %     1.0 %     0.5 %     2.1 %     2.7 %     2.4 %     3.0 %     0.7 %           1.8 %
 
     
(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 fiscal 2010 reflect results from the 52 week operating period in the current year compared to the same 52 week operating period in the prior year.

 

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