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.
Page 1 of 9
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 operationsrefers to income from continuing operations, net of tax, attributable to PFCB common stockholders. | ||
• | Net incomerefers to Net income attributable to PFCB common stockholders | ||
• | Comparable store sales changesinclude 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. |
Page 2 of 9
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 athttp://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 |
Page 3 of 9
P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
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 | ||||||||
Page 4 of 9
P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
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 |
Page 5 of 9
Concept: P.F. Chang’s China Bistro
Supplemental Financial Information
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
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