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8-K - 8-K - P F CHANGS CHINA BISTRO INCq311earningsrelease.htm
EX-99.2 - EX-99.2 - P F CHANGS CHINA BISTRO INCex992transcript.htm



 
P.F. Chang's China Bistro, Inc.
 

P.F. CHANG'S REPORTS THIRD QUARTER 2011 RESULTS

SCOTTSDALE, ARIZONA, October 27, 2011 - P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the third quarter of fiscal 2011, which ended on October 2, 2011. Total revenues were $300.6 million in the third quarter of fiscal 2011 as compared to $308.4 million in the prior year. For the three months ended October 2, 2011 and October 3, 2010, net income was $6.3 million and $10.5 million, respectively, and diluted net income per share was $0.29 and $0.45, respectively.

Results for the third quarter of fiscal 2011 included the benefit of lower share-based compensation expense ($0.21 per share), the impact of non-cash asset impairment charges related to three restaurants that continue to operate ($0.16 per share) and charges related to the departure of the Bistro's Chief Operating Officer and the streamlining of certain support functions during the third quarter of fiscal 2011 ($0.03 per share).

Comparable Store Sales
Comparable store sales decreased 3.7% at the Bistro and 3.6% at Pei Wei in the third quarter of 2011 due, in both cases, to declines in guest traffic. Current quarter comparable store sales at the Bistro were impacted by approximately 40 basis points due to Hurricane Irene. Quarterly sales results include a one to two percent menu price increase at the Bistro and a two to three percent menu price increase at Pei Wei.

On a monthly basis, comparable store sales for July, August and September decreased 4.6%, 4.1%, and 2.2%, respectively, at the Bistro and decreased 3.9%, 3.7%, and 3.0%, respectively, at Pei Wei. August comparable store sales at the Bistro were impacted by approximately 130 basis points due to Hurricane Irene.

2011 Expectations
The Company anticipates that full year fiscal 2011 consolidated revenues will be flat to slightly down from fiscal 2010, which assumes estimated same store sales declines of two to three percent at both concepts. The Company also expects fiscal 2011 restaurant operating income to decline approximately 150 basis points compared to fiscal 2010. Overall, the Company continues to expect consolidated diluted earnings per share to range from $1.60 to $1.70 for fiscal 2011.

The Company expects to open two new Bistro restaurants during the fourth quarter of fiscal 2011. In addition, the Company expects its international partners to collectively open two Bistro restaurants and the first Pei Wei restaurant in international markets during the fourth quarter of fiscal 2011.

The Company also expects the first two Pei Wei Asian Diner airport locations to open late this year through a licensing agreement.

2012 Development
The Company currently expects to open three to five new Bistro restaurants and 16 to 20 new Pei Wei restaurants during fiscal 2012.

In addition, the Company expects its international partners to open approximately 12 Bistro restaurants and two Pei Wei restaurants through licensing agreements during fiscal 2012. Also, through licensing agreements, the Company expects three Pei Wei airport locations to open during fiscal 2012.

Share Repurchase Program
During the third quarter of fiscal 2011, the Company repurchased 1.2 million shares of common stock for $35.6 million, fully utilizing the remaining amount available under the current share repurchase authorization.

On October 17, 2011, the Company's Board of Directors authorized a new share repurchase program under which the

1



Company may repurchase up to $100.0 million of its outstanding shares of common stock from time to time in the open market or in private transactions at prevailing market prices during the period ending December 31, 2013.

Credit Facility
On October 26, 2011, the Company amended and restated its Credit Facility to provide additional flexibility in its capital structure. The amendment increased the borrowings allowed to $150.0 million from $75.0 million and extended the expiration to October 25, 2016 from August 30, 2013.

Quarterly Dividend
The Company's Board of Directors authorized a cash dividend payment of $0.25 per share on the Company's outstanding common stock. The next quarterly dividend is payable on November 21, 2011 to shareholders of record at the close of business on November 7, 2011.

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

Conference Call Information
The Company is hosting a conference call today at 8:30 am Eastern Time during 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 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 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 2011 expectations, 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; inability to successfully expand our operations; 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

2



the Company's business; adverse impact if information technology and computer systems do not perform properly. More detailed information about the Company and the risk factors that may affect the realization of any forward-looking statements is set forth in the Company's filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.

Contacts:
 
 
 
     Investor:
Allison Schulder
(480) 888-3000
allison.schulder@pfcb.com
 
 
 
 
     Media:
Krissy Zotaley
(312) 577-1764
kzotaley@oco.com





































3



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 2,
 
October 3,
 
October 2,
 
October 3,
 
 
2011
 
2010
 
2011
 
2010
Revenues:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
298,976

 
$
307,499

 
$
924,921

 
$
929,243

Restaurant licensing
 
764

 
394

 
2,097

 
1,631

Retail licensing
 
877

 
517

 
1,982

 
745

   Total revenues
 
300,617

 
308,410

 
929,000

 
931,619

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of sales
 
77,821

 
78,380

 
243,318

 
244,110

Labor
 
102,146

 
101,620

 
313,931

 
308,390

Operating
 
54,456

 
52,058

 
160,734

 
156,408

Occupancy
 
18,390

 
18,504

 
55,496

 
54,951

General and administrative (1)
 
12,664

 
23,226

 
52,108

 
62,044

Depreciation and amortization (2)
 
24,845

 
19,318

 
65,323

 
57,654

Preopening expense
 
629

 
572

 
1,240

 
1,537

Partner investment expense
 
(60
)
 
(147
)
 
(236
)
 
(271
)
   Total costs and expenses
 
290,891

 
293,531

 
891,914

 
884,823

Income from operations
 
9,726

 
14,879

 
37,086

 
46,796

Interest and other income (expense), net
 
(947
)
 
175

 
(615
)
 
(905
)
Income from continuing operations before taxes
 
8,779

 
15,054

 
36,471

 
45,891

Provision for income taxes
 
(2,439
)
 
(4,417
)
 
(10,137
)
 
(13,349
)
Income from continuing operations, net of tax
 
6,340

 
10,637

 
26,334

 
32,542

Income (loss) from discontinued operations, net of tax
 
10

 

 
(19
)
 
6

Net income
 
6,350

 
10,637

 
26,315

 
32,548

Less net income attributable to noncontrolling interests
 
39

 
172

 
316

 
619

Net income attributable to PFCB
 
$
6,311

 
$
10,465

 
$
25,999

 
$
31,929

 
 
 
 
 
 
 
 
 
Basic income per share:
 
 
 
 
 
 
 
 
Income from continuing operations attributable to PFCB common stockholders
 
$
0.29

 
$
0.46

 
$
1.18

 
$
1.41

Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders
 
0.00

 
0.00

 
0.00

 
0.00

Net income attributable to PFCB common stockholders
 
$
0.29

 
$
0.46

 
$
1.18

 
$
1.41

 
 
 
 
 
 
 
 
 
Diluted income per share:
 
 
 
 
 
 
 
 
Income from continuing operations attributable to PFCB common stockholders
 
$
0.29

 
$
0.45

 
$
1.16

 
$
1.38

Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders
 
0.00

 
0.00

 
0.00

 
0.00

Net income attributable to PFCB common stockholders
 
$
0.29

 
$
0.45

 
$
1.16

 
$
1.38

 
 
 
 
 
 
 
 
 
Weighted average shares used in computation:
 
 
 
 
 
 
 
 
Basic
 
21,479

 
22,697

 
22,084

 
22,719

Diluted
 
21,758

 
23,070

 
22,413

 
23,150

 
 
 
 
 
 
 
 
 
Cash dividends declared per share
 
$
0.25

 
$
0.21

 
$
0.71

 
$
0.63

 
 
 
 
 
 
 
 
 
Amounts attributable to PFCB:
 
 
 
 
 
 
 
 
Income from continuing operations, net of tax
 
$
6,301

 
$
10,465

 
$
26,018

 
$
31,923

Income (loss) from discontinued operations, net of tax
 
10

 

 
(19
)
 
6

Net income attributable to PFCB
 
$
6,311

 
$
10,465

 
$
25,999

 
$
31,929

(1)
General and administrative includes the benefit of lower share-based compensation expense of $6.2 million and charges related to separation agreements of $1.0 million during the three months ended October 2, 2011.
(2)
Depreciation and amortization includes the impact of non-cash asset impairment charges of $4.8 million related to three restaurants that continue to operate during the three months ended October 2, 2011.

4





P.F. Chang's China Bistro, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2009 (3)
 
 1Q10
 2Q10
 3Q10
 4Q10
2010
 
 1Q11
2Q11
 3Q11
YTD Q3 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Units
363

 
364

366

368

369

369

 
372

374

375

375

Sales weeks
18,756

 
4,731

4,736

4,770

4,791

19,028

 
4,819

4,852

4,859

14,530

AWS
65,482

 
65,604

66,055

64,656

64,951

65,314

 
65,858

64,100

61,868

63,937

 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues (1)
 
 
 
 
 
 
 
 
 
 
 
 
 Restaurant sales
1,228,045

 
310,242

311,502

307,499

310,260

1,239,503

 
316,304

309,641

298,976

924,921

 Restaurant licensing
134

 
129

1,108

394

474

2,105

 
684

649

764

2,097

 Retail licensing

 

228

517

446

1,191

 
381

724

877

1,982

 Total revenues
1,228,179

 
310,371

312,838

308,410

311,180

1,242,799

 
317,369

311,014

300,617

929,000

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating costs
 
 
 
 
 
 
 
 
 
 
 
 
 Cost of sales
326,421

 
84,013

81,717

78,380

80,621

324,731

 
83,322

82,175

77,821

243,318

 Labor
401,583

 
104,475

102,295

101,620

101,610

410,000

 
106,464

105,321

102,146

313,931

 Operating
203,859

 
52,753

51,597

52,058

51,886

208,294

 
53,807

52,471

54,456

160,734

 Occupancy
70,635

 
17,838

18,609

18,504

18,756

73,707

 
18,425

18,681

18,390

55,496

 Net income attributable to noncontrolling interests
1,408

 
206

241

172

165

784

 
157

120

39

316

 Depreciation & amortization
74,429

 
19,001

19,335

19,318

19,832

77,486

 
19,698

20,780

24,845

65,323

Restaurant operating income
149,844

 
32,085

39,044

38,358

38,310

147,797

 
35,496

31,466

22,920

89,882

 
 
 
 
 
 
 
 
 
 
 
 
 
Development costs
 
 
 
 
 
 
 
 
 
 
 
 
 Preopening expense
3,919

 
133

832

572

439

1,976

 
398

213

629

1,240

 Partner investment expense
(629
)
 
11

(135
)
(147
)
(47
)
(318
)
 
(126
)
(50
)
(60
)
(236
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expenses
 
 
 
 
 
 
 
 
 
 
 
 
 General and administrative (2)
82,749

 
19,053

19,765

23,226

19,839

81,883

 
20,280

19,164

12,664

52,108

 Interest and other (income) expense, net
1,637

 
415

665

(175
)
(333
)
572

 
(204
)
(128
)
947

615

 Provision for income taxes
18,492

 
3,788

5,144

4,417

3,773

17,122

 
4,555

3,143

2,439

10,137

Income from continuing operations
43,676

 
8,685

12,773

10,465

14,639

46,562

 
10,593

9,124

6,301

26,018

Income (loss) from discontinued operations, net of tax
(479
)
 
6



40

46

 
3

(32
)
10

(19
)
Net income attributable to PFCB
43,197

 
8,691

12,773

10,465

14,679

46,608

 
10,596

9,092

6,311

25,999

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations per FDS
$
1.87

 
$
0.38

$
0.55

$
0.45

$
0.64

$
2.01

 
$
0.46

$
0.40

$
0.29

$
1.16

 
 
 
 
 
 
 
 
 
 
 
 
 
Fully diluted shares (FDS)
23,413

 
23,104

23,277

23,070

23,011

23,115

 
22,901

22,581

21,758

22,413

 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
100.0
%
 
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
 
100.0
%
100.0
 %
100.0
 %
100.0
 %
Cost of sales
26.6
%
 
27.1
%
26.1
%
25.4
%
25.9
%
26.1
%
 
26.3
%
26.4
 %
25.9
 %
26.2
 %
Labor
32.7
%
 
33.7
%
32.7
%
32.9
%
32.7
%
33.0
%
 
33.5
%
33.9
 %
34.0
 %
33.8
 %
Operating
16.6
%
 
17.0
%
16.5
%
16.9
%
16.7
%
16.8
%
 
17.0
%
16.9
 %
18.1
 %
17.3
 %
Occupancy
5.8
%
 
5.7
%
5.9
%
6.0
%
6.0
%
5.9
%
 
5.8
%
6.0
 %
6.1
 %
6.0
 %
Net income attributable to noncontrolling interests
0.1
%
 
0.1
%
0.1
%
0.1
%
0.1
%
0.1
%
 
0.0
%
0.0
 %
0.0
 %
0.0
 %
Depreciation & amortization
6.1
%
 
6.1
%
6.2
%
6.3
%
6.4
%
6.2
%
 
6.2
%
6.7
 %
8.3
 %
7.0
 %
Restaurant operating income
12.2
%
 
10.3
%
12.5
%
12.4
%
12.3
%
11.9
%
 
11.2
%
10.1
 %
7.6
 %
9.7
 %
Preopening expenses
0.3
%
 
0.0
%
0.3
%
0.2
%
0.1
%
0.2
%
 
0.1
%
0.1
 %
0.2
 %
0.1
 %
Partner investment expense
(0.1%)

 
0.0
%
(0.0%)

(0.0%)

(0.0%)

(0.0%)

 
0.0
%
0.0
 %
0.0
 %
0.0
 %
General and administrative (2)
6.7
%
 
6.1
%
6.3
%
7.5
%
6.4
%
6.6
%
 
6.4
%
6.2
 %
4.2
 %
5.6
 %
Interest and other (income) expense, net
0.1
%
 
0.1
%
0.2
%
(0.1%)

(0.1%)

0.0
%
 
(0.1%)

0.0
 %
0.3
 %
0.1
 %
Provision for income taxes
1.5
%
 
1.2
%
1.6
%
1.4
%
1.2
%
1.4
%
 
1.4
%
1.0
 %
0.8
 %
1.1
 %
Income from continuing operations
3.6
%
 
2.8
%
4.1
%
3.4
%
4.7
%
3.7
%
 
3.3
%
2.9
 %
2.1
 %
2.8
 %
Income (loss) from discontinued operations, net of tax
(0.0%)

 
0.0
%
0.0
%
0.0
%
0.0
%
0.0
%
 
0.0
%
0.0
 %
0.0
 %
0.0
 %
Net income attributable to PFCB
3.5
%
 
2.8
%
4.1
%
3.4
%
4.7
%
3.8
%
 
3.3
%
2.9
 %
2.1
 %
2.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Information to GAAP measures:
 
 
 
 
 
 
 
 
 
 
 
 
Restaurant operating income
149,844

 
32,085

39,044

38,358

38,310

147,797

 
35,496

31,466

22,920

89,882

Add: Net income attributable to noncontrolling interests
1,408

 
206

241

172

165

784

 
157

120

39

316

Less: General and administrative (2)
(82,749
)
 
(19,053
)
(19,765
)
(23,226
)
(19,839
)
(81,883
)
 
(20,280
)
(19,164
)
(12,664
)
(52,108
)
Less: Preopening expense
(3,919
)
 
(133
)
(832
)
(572
)
(439
)
(1,976
)
 
(398
)
(213
)
(629
)
(1,240
)
Less: Partner investment expense
629

 
(11
)
135

147

47

318

 
126

50

60

236

Income from operations
65,213

 
13,094

18,823

14,879

18,244

65,040

 
15,101

12,259

9,726

37,086

 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
            (3) 2009 results were comprised of a 53 week operating year

5



Concept: P.F. Chang's China Bistro
Supplemental Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2009
 
 1Q10
 2Q10
 3Q10
 4Q10
2010
 
 1Q11
 2Q11
 3Q11
YTD Q3 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 Units
197

 
197

199

200

201

201

 
201

201

202

202

 Sales weeks
10,150

 
2,561

2,565

2,593

2,607

10,326

 
2,613

2,613

2,610

7,836

 AWS
91,161

 
90,077

90,964

89,202

89,726

89,989

 
90,181

88,487

85,494

88,055

 
 
 
 
 
 
 
 
 
 
 
 
 
 Total revenues
925,321

 
230,767

233,365

231,309

233,931

929,372

 
235,782

231,226

223,118

690,126

 
 
 
 
 
 
 
 
 
 
 
 
 
 Operating costs
 
 
 
 
 
 
 
 
 
 
 
 
 Cost of sales
244,816

 
62,711

60,914

58,135

60,008

241,768

 
61,333

60,759

57,677

179,769

 Labor
300,775

 
78,192

76,769

76,533

76,667

308,161

 
79,792

78,442

76,273

234,507

 Operating
150,883

 
38,546

38,183

38,554

37,804

153,087

 
38,783

38,442

40,602

117,827

 Occupancy
50,186

 
12,640

13,254

13,242

13,368

52,504

 
13,074

13,125

12,955

39,154

 Net income attributable to noncontrolling interests
538

 
71

93

62

70

296

 
79

69

20

168

 Depreciation & amortization
54,521

 
13,854

14,043

14,018

14,519

56,434

 
14,384

14,550

17,958

46,892

 Restaurant operating income
123,602

 
24,753

30,109

30,765

31,495

117,122

 
28,337

25,839

17,633

71,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 Total revenues
100.0
%
 
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
 
100.0
%
100.0
%
100.0
%
100.0
%
 Cost of sales
26.5
%
 
27.2
%
26.1
%
25.1
%
25.7
%
26.0
%
 
26.0
%
26.3
%
25.9
%
26.0
%
 Labor
32.5
%
 
33.9
%
32.9
%
33.1
%
32.8
%
33.2
%
 
33.8
%
33.9
%
34.2
%
34.0
%
 Operating
16.3
%
 
16.7
%
16.4
%
16.7
%
16.2
%
16.5
%
 
16.4
%
16.6
%
18.2
%
17.1
%
 Occupancy
5.4
%
 
5.5
%
5.7
%
5.7
%
5.7
%
5.6
%
 
5.5
%
5.7
%
5.8
%
5.7
%
 Net income attributable to noncontrolling interests
0.1
%
 
0.0
%
0.0
%
0.0
%
0.0
%
0.0
%
 
0.0
%
0.0
%
0.0
%
0.0
%
 Depreciation & amortization
5.9
%
 
6.0
%
6.0
%
6.1
%
6.2
%
6.1
%
 
6.1
%
6.3
%
8.0
%
6.8
%
 Restaurant operating income
13.4
%
 
10.7
%
12.9
%
13.3
%
13.5
%
12.6
%
 
12.0
%
11.2
%
7.9
%
10.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 Reconciliation of Non-GAAP Financial Information to GAAP measures:
 
 
 
 
 
 
 
 
 
 
 
 
Restaurant operating income
123,602

 
24,753

30,109

30,765

31,495

117,122

 
28,337

25,839

17,633

71,809

Add: Net income attributable to noncontrolling interests
538

 
71

93

62

70

296

 
79

69

20

168

Less: Preopening expense
(2,835
)
 
(26
)
(765
)
(411
)
(265
)
(1,467
)
 
2

(28
)
(604
)
(630
)
Less: Partner investment expense
236

 





 




Income from operations
121,541

 
24,798

29,437

30,416

31,300

115,951

 
28,418

25,880

17,049

71,347


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


6



Concept: Pei Wei Asian Diner (A)
Supplemental Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2009
 
 1Q10
 2Q10
 3Q10
 4Q10
2010
 
 1Q11
2Q11
 3Q11
YTD Q3 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 Units
166

 
167

167

168

168

168

 
171

173

173

173

 Sales weeks
8,606

 
2,170

2,171

2,177

2,184

8,702

 
2,206

2,239

2,249

6,694

 AWS
35,171

 
36,597

35,991

34,998

34,950

35,632

 
36,501

35,022

33,730

35,075

 
 
 
 
 
 
 
 
 
 
 
 
 
 Total revenues
302,724

 
79,475

78,137

76,190

76,329

310,131

 
80,522

78,415

75,858

234,795

 
 
 
 
 
 
 
 
 
 
 
 
 
 Operating costs
 
 
 
 
 
 
 
 
 
 
 
 
 Cost of sales
81,605

 
21,302

20,803

20,245

20,613

82,963

 
21,989

21,416

20,144

63,549

 Labor
100,808

 
26,283

25,526

25,087

24,943

101,839

 
26,672

26,879

25,873

79,424

 Operating
52,976

 
14,207

13,414

13,504

14,082

55,207

 
15,024

14,029

13,854

42,907

 Occupancy
20,449

 
5,198

5,355

5,262

5,388

21,203

 
5,351

5,556

5,435

16,342

 Net income attributable to noncontrolling interests
870

 
135

148

110

95

488

 
78

51

19

148

 Depreciation & amortization
18,103

 
4,647

4,762

4,772

4,761

18,942

 
4,767

5,560

6,206

16,533

 Restaurant operating income
27,913

 
7,703

8,129

7,210

6,447

29,489

 
6,641

4,924

4,327

15,892

 
 
 
 
 
 
 
 
 
 
 
 
 
 Total revenues
100.0
%
 
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
 
100.0
%
100.0
%
100.0
%
100.0
%
 Cost of sales
27.0
%
 
26.8
%
26.6
%
26.6
%
27.0
%
26.8
%
 
27.3
%
27.3
%
26.6
%
27.1
%
 Labor
33.3
%
 
33.1
%
32.7
%
32.9
%
32.7
%
32.8
%
 
33.1
%
34.3
%
34.1
%
33.8
%
 Operating
17.5
%
 
17.9
%
17.2
%
17.7
%
18.4
%
17.8
%
 
18.7
%
17.9
%
18.3
%
18.3
%
 Occupancy
6.8
%
 
6.5
%
6.9
%
6.9
%
7.1
%
6.8
%
 
6.6
%
7.1
%
7.2
%
7.0
%
 Net income attributable to noncontrolling interests
0.3
%
 
0.2
%
0.2
%
0.1
%
0.1
%
0.2
%
 
0.1
%
0.1
%
0.0
%
0.1
%
 Depreciation & amortization
6.0
%
 
5.8
%
6.1
%
6.3
%
6.2
%
6.1
%
 
5.9
%
7.1
%
8.2
%
7.0
%
 Restaurant operating income
9.2
%
 
9.7
%
10.4
%
9.5
%
8.4
%
9.5
%
 
8.2
%
6.3
%
5.7
%
6.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Information to GAAP measures:
 
 
 
 
 
 
 
 
 
 
 
 
Restaurant operating income
27,913

 
7,703

8,129

7,210

6,447

29,489

 
6,641

4,924

4,327

15,892

Add: Net income attributable to noncontrolling interests
870

 
135

148

110

95

488

 
78

51

19

148

Less: Preopening expense
(1,084
)
 
(107
)
(67
)
(161
)
(174
)
(509
)
 
(400
)
(185
)
(25
)
(610
)
Less: Partner investment expense
393

 
(11
)
135

147

47

318

 
126

50

60

236

Income from operations
28,092

 
7,720

8,345

7,306

6,415

29,786

 
6,445

4,840

4,381

15,666


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

7




 
 
 
 
 
 
 
 
 
 
 
 
P.F. Chang's China Bistro
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Sales Information (Company Owned)
 
 
 
 
 
 
 
 
 
 
 
 
Year of Unit Opening (1)
 
Pre-2003
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total
Units
78
18
18
18
20
20
17
8
4
1
202
 
 
 
 
 
 
 
 
 
 
 
 
Sales (000)
1Q11
101,661
22,626
18,627
18,865
21,852
22,395
17,146
8,169
4,302
235,643
2Q11
99,024
22,227
18,929
18,425
21,522
22,117
16,720
7,955
4,297
231,216
3Q11
94,837
21,456
18,708
17,793
20,618
21,425
16,052
7,847
4,047
355
223,138
 
 
 
 
 
 
 
 
 
 
 
 
2011
295,522

66,309
56,264
55,083
63,992
65,937
49,918
23,971
12,646
355
689,997

 
 
 
 
 
 
 
 
 
 
 
 
Average Weekly Sales (AWS)
1Q11
100,257
96,694
79,602
80,618
84,045
86,133
77,586
78,551
82,724
90,181
2Q11
97,656
94,987
80,896
78,739
82,778
85,066
75,658
76,490
82,627
88,487
3Q11
94,085
91,693
79,948
76,040
79,300
82,404
72,631
75,456
77,824
118,172

85,494
 
 
 
 
 
 
 
 
 
 
 
 
2011
97,339
94,458
80,148
78,466
82,041
84,534
75,292
76,832
81,058
118,172
88,055
 
 
 
 
 
 
 
 
 
 
 
 
Year-Over-Year Change Comparable Store Sales (2)
Units
78
18
18
18
20
20
17
8
197
 
 
 
 
 
 
 
 
 
 
 
 
1Q11
0.8%
0.4%
2.5%
0.1%
0.6%
-0.7%
1.1%
-7.3%
0.5%
2Q11
-2.0%
-2.5%
-0.5%
-3.2%
-1.9%
-3.5%
-4.4%
-7.9%
-2.5%
3Q11
-3.5%
-4.3%
-1.6%
-3.5%
-2.9%
-4.4%
-5.7%
-6.9%
-3.7%
 
 
 
 
 
 
 
 
 
 
 
 
2011
-1.6%
-2.1%
0.1%
-2.2%
-1.4%
-2.8%
-3.0%
-7.4%
-1.9%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes all restaurants opened in the period indicated.
(2) A unit becomes comparable in the eighteenth month of operation.
 
 
 
 
 
 
 
 
 
 
 
 


8



 
 
 
 
 
 
 
 
 
 
 
 
Pei Wei Asian Diner
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Sales Information
 
 
 
 
 
 
 
 
 
 
 
 
Year of Unit Opening (1)
 
Pre-2003
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total
Units
16
17
19
23
27
32
25
7
2
5
173
 
 
 
 
 
 
 
 
 
 
 
 
Sales (000)
1Q11
7,956
8,638
10,048
11,243
13,240
14,022
10,515
3,035
892
933
80,522
2Q11
7,587
8,351
9,547
10,882
12,790
13,272
10,174
2,901
807
2,104
78,415
3Q11
7,295
8,033
9,241
10,501
12,427
12,798
9,687
2,812
795
2,269
75,858
 
 
 
 
 
 
 
 
 
 
 
 
2011
22,838

25,022
28,836
32,626
38,457
40,092
30,376
8,748
2,494
5,306
234,795
 
 
 
 
 
 
 
 
 
 
 
 
Average Weekly Sales (AWS)
1Q11
38,247
39,085
40,678
37,603
37,721
33,707
32,353
33,350
34,323
42,421
36,501
2Q11
36,477
37,787
38,653
36,393
36,439
31,904
31,304
31,879
31,014
38,242
35,022
3Q11
35,074
36,347
37,414
35,121
35,404
30,764
29,807
30,904
30,587
34,903
33,730
 
 
 
 
 
 
 
 
 
 
 
 
2011
36,600
37,740
38,915
36,372
36,521
32,125
31,155
32,044
31,974
37,361
35,075
 
 
 
 
 
 
 
 
 
 
 
 
Year-Over-Year Change Comparable Store Sales (2)
Units
16
17
19
23
27
32
25
7
1
167
1Q11
-4.2%
-1.5%
0.3%
0.8%
0.5%
0.5%
1.1%
-0.7%
-0.2%
2Q11
-3.1%
-2.5%
-3.2%
-1.4%
-2.3%
-3.8%
-2.5%
-3.5%
-9.8%
-2.7%
3Q11
-2.9%
-2.7%
-3.6%
-2.9%
-3.7%
-4.6%
-3.9%
-3.0%
-10.3%
-3.6%
 
 
 
 
 
 
 
 
 
 
 
 
2011
-3.4%
-2.2%
-2.1%
-1.1%
-1.8%
-2.6%
-1.7%
-2.5%
-10.2%
-2.1%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes all restaurants opened in the period indicated.
(2) A unit becomes comparable in the eighteenth month of operation.
 
 
 
 
 
 
 
 
 
 
 
 


9