Exhibit 99.1
P.F. Chang’s China Bistro, Inc.
P.F. CHANG’S THIRD QUARTER REVENUES GROW 17%;
THIRD QUARTER EARNINGS EXPECTATIONS LOWERED
THIRD QUARTER EARNINGS EXPECTATIONS LOWERED
SCOTTSDALE, ARIZONA (October 3, 2007)P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported consolidated revenues of $270.8 million for the third quarter ended September 30, 2007 compared to $231.0 million for the third quarter of 2006. Sales at company owned P.F. Chang’s China Bistro restaurants accounted for $208.5 million of consolidated revenues, sales at the company’s Pei Wei Asian Diner restaurants accounted for $61.7 million of consolidated revenues and sales at the company’s Taneko Japanese Tavern restaurant accounted for $0.6 million of consolidated revenues.
For the 13 weeks ended September 30, 2007 comparable store sales decreased 1.6% at the Bistro (including a 2% to 3% effective price increase) and decreased 1.0% at Pei Wei compared to the 13 weeks ended October 1, 2006. Comparable store sales at the Bistro decreased 1.9%, 1.0% and 1.9% for July, August and September, respectively, and decreased 0.8%, 0.7% and 1.4% for July, August and September, respectively, at Pei Wei.
During the third quarter of 2007, the company opened 5 new Bistro restaurants and 11 new Pei Wei restaurants.
Updated Third Quarter Expectations
Due primarily to the $2.2 million revenue shortfall compared to expectations of approximately $273.0 million, the company will report third quarter earnings below forecast. In addition to the impact on earnings of the revenue underperformance, the company has experienced unanticipated costs related to:
• | Continued labor pressure | ||
• | Higher repairs and maintenance and restaurant supplies | ||
• | The acceleration of the Bistro grill rollout | ||
• | A fire in the Nashville Bistro |
The company anticipates reporting third quarter diluted earnings per share between $0.05 and $0.07 below its previously released forecast of $0.25.
The company intends to release its third quarter earnings results on October 24, 2007 at approximately 7:00 am ET. A conference call will be held later that same day at 1:00 pm ET. A webcast of the conference call can be accessed at www.pfcb.com.
P.F. Chang’s China Bistro, Inc. owns and operates three restaurant concepts in the Asian niche. P.F. Chang’s China Bistro features a blend of high-quality, traditional Chinese cuisine and American hospitality in a sophisticated, contemporary bistro setting. Pei Wei Asian Diner offers a modest menu of freshly prepared Asian cuisine in a relaxed, warm environment offering attentive counter service and take-out flexibility. Taneko Japanese Tavern features natural, organic and seasonal ingredients highlighting the diverse cooking styles of Japan.
The statements contained in this press release that are not purely historical, including the company’s estimates of its revenues, earnings and comparable store sales, are forward-looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, the company’s ability to locate acceptable restaurant sites; open new restaurants and operate its restaurants profitably; the company’s ability to hire, train and retain skilled management and other personnel; the company’s ability to access sufficient financing on acceptable terms; changes in consumer tastes and trends; customer acceptance of new concepts; national, regional and local economic and weather conditions; changes in costs related to food, utilities and labor; and other risks described in the company’s recent SEC filings.
Contact: P.F. Chang’s China Bistro, Inc. (480) 888-3000
Media: | Laura Cherry | laura.cherry@pfcb.com | ||||
Investor: | Mark Mumford | mark.mumford@pfcb.com |
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P.F. Chang’s China Bistro
Supplemental Sales Information (Company Owned)
Year of Unit Opening (1)
Pre-2000 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | Total | |||||||||||||||||||||||||||||||
Units | 35 | 16 | 13 | 14 | 18 | 18 | 18 | 20 | 10 | 162 | ||||||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||||||
1Q07 | 54,138 | 23,539 | 18,803 | 18,201 | 24,965 | 20,158 | 21,081 | 25,819 | 283 | 206,987 | ||||||||||||||||||||||||||||||
2Q07 | 53,462 | 23,073 | 18,150 | 17,366 | 24,516 | 20,482 | 20,777 | 24,273 | 6,002 | 208,101 | ||||||||||||||||||||||||||||||
3Q07 | 52,397 | 22,804 | 17,605 | 16,646 | 24,173 | 20,438 | 20,522 | 23,248 | 10,643 | 208,475 | ||||||||||||||||||||||||||||||
2007 | 159,997 | 69,416 | 54,558 | 52,213 | 73,654 | 61,078 | 62,380 | 73,340 | 16,928 | 623,564 | ||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||||||
1Q07 | 118,984 | 113,168 | 111,264 | 100,004 | 106,687 | 86,144 | 90,092 | 99,305 | 94,358 | 104,592 | ||||||||||||||||||||||||||||||
2Q07 | 117,500 | 110,928 | 107,398 | 95,418 | 104,771 | 87,530 | 88,792 | 93,357 | 115,426 | 102,615 | ||||||||||||||||||||||||||||||
3Q07 | 115,158 | 109,637 | 104,171 | 91,461 | 103,302 | 87,340 | 87,700 | 89,414 | 104,344 | 100,325 | ||||||||||||||||||||||||||||||
2007 | 117,214 | 111,244 | 107,611 | 95,627 | 104,920 | 87,002 | 88,861 | 94,025 | 107,824 | 102,475 | ||||||||||||||||||||||||||||||
Year-Over-Year Change in AWS (2) | ||||||||||||||||||||||||||||||||||||||||
1Q07 | -2.5 | % | -3.2 | % | -3.4 | % | -2.2 | % | -1.4 | % | -2.2 | % | -7.9 | % | -37.5 | % | — | -3.3 | % | |||||||||||||||||||||
2Q07 | -1.1 | % | -2.7 | % | -2.2 | % | -1.8 | % | -0.3 | % | 0.7 | % | -2.9 | % | -13.8 | % | — | -1.6 | % | |||||||||||||||||||||
3Q07 | -1.3 | % | -2.2 | % | -2.4 | % | -2.8 | % | -1.0 | % | 0.0 | % | -1.9 | % | -7.6 | % | — | -1.8 | % | |||||||||||||||||||||
2007 | -1.6 | % | -2.7 | % | -2.7 | % | -2.3 | % | -0.9 | % | -0.5 | % | -4.3 | % | -11.6 | % | — | -2.2 | % | |||||||||||||||||||||
Year-Over-Year Change Comp Store Sales (3) | ||||||||||||||||||||||||||||||||||||||||
Units | 35 | 16 | 13 | 14 | 18 | 18 | 18 | 1 | — | 133 | ||||||||||||||||||||||||||||||
1Q07 | -2.5 | % | -3.2 | % | -3.4 | % | -2.2 | % | -1.4 | % | -2.2 | % | -3.4 | % | — | — | -2.5 | % | ||||||||||||||||||||||
2Q07 | -1.1 | % | -2.7 | % | -2.2 | % | -1.8 | % | -0.3 | % | 0.7 | % | -1.8 | % | -24.5 | % | — | -1.3 | % | |||||||||||||||||||||
3Q07 | -1.3 | % | -2.2 | % | -2.4 | % | -2.8 | % | -1.0 | % | 0.0 | % | -1.9 | % | -15.4 | % | — | -1.6 | % | |||||||||||||||||||||
2007 | -1.6 | % | -2.7 | % | -2.7 | % | -2.3 | % | -0.9 | % | -0.5 | % | -2.3 | % | -17.6 | % | — | -1.8 | % |
(1) | Includes all restaurants opened in the period indicated. | |
(2) | A unit is included in the year-over-year change in AWS in the thirteenth month of operation. | |
(3) | A unit becomes comparable in the eighteenth month of operation. |
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Pei Wei Asian Diner
Supplemental Sales Information
Year of Unit Opening (1)
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | Total | ||||||||||||||||||||||||||||
Units | 1 | 4 | 11 | 17 | 20 | 24 | 30 | 30 | 137 | |||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||
1Q07 | 782 | 2,278 | 6,196 | 9,378 | 10,689 | 11,502 | 13,784 | 2,040 | 56,649 | |||||||||||||||||||||||||||
2Q07 | 737 | 2,095 | 5,869 | 9,212 | 10,474 | 11,150 | 13,337 | 5,769 | 58,643 | |||||||||||||||||||||||||||
3Q07 | 685 | 1,944 | 5,544 | 8,731 | 10,385 | 11,113 | 13,121 | 10,214 | 61,738 | |||||||||||||||||||||||||||
2007 | 2,205 | 6,317 | 17,609 | 27,321 | 31,548 | 33,765 | 40,242 | 18,023 | 177,030 | |||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||
1Q07 | 60,181 | 43,804 | 43,330 | 42,436 | 41,111 | 36,866 | 35,343 | 37,086 | 39,177 | |||||||||||||||||||||||||||
2Q07 | 56,700 | 40,283 | 41,043 | 41,683 | 40,286 | 35,736 | 34,198 | 34,137 | 37,592 | |||||||||||||||||||||||||||
3Q07 | 52,718 | 37,391 | 38,766 | 39,507 | 39,941 | 35,620 | 33,643 | 33,272 | 36,359 | |||||||||||||||||||||||||||
2007 | 56,533 | 40,493 | 41,047 | 41,209 | 40,446 | 36,074 | 34,395 | 33,942 | 37,634 | |||||||||||||||||||||||||||
Year-Over-Year Change in AWS (2) | ||||||||||||||||||||||||||||||||||||
1Q07 | -3.4 | % | -2.3 | % | -1.9 | % | 1.5 | % | 0.2 | % | 3.8 | % | -10.9 | % | — | 0.6 | % | |||||||||||||||||||
2Q07 | -3.5 | % | -2.6 | % | -1.6 | % | 2.5 | % | 1.0 | % | 3.2 | % | -4.7 | % | — | 0.8 | % | |||||||||||||||||||
3Q07 | -7.9 | % | -7.3 | % | -5.8 | % | -2.4 | % | 1.2 | % | 2.8 | % | -8.0 | % | — | -2.0 | % | |||||||||||||||||||
2007 | -4.9 | % | -4.0 | % | -3.1 | % | 0.5 | % | 0.8 | % | 3.3 | % | -7.4 | % | — | -0.3 | % | |||||||||||||||||||
Year-Over-Year Change Comp Store Sales (3) | ||||||||||||||||||||||||||||||||||||
Units | 1 | 4 | 11 | 17 | 20 | 24 | 5 | — | 82 | |||||||||||||||||||||||||||
1Q07 | -3.4 | % | -2.3 | % | -1.9 | % | 1.5 | % | 0.2 | % | 2.9 | % | — | — | 0.5 | % | ||||||||||||||||||||
2Q07 | -3.5 | % | -2.6 | % | -1.6 | % | 2.5 | % | 1.0 | % | 2.7 | % | -6.8 | % | — | 1.0 | % | |||||||||||||||||||
3Q07 | -7.9 | % | -7.3 | % | -5.8 | % | -2.4 | % | 1.2 | % | 2.8 | % | -2.2 | % | — | -1.0 | % | |||||||||||||||||||
2007 | -4.9 | % | -4.0 | % | -3.1 | % | 0.5 | % | 0.8 | % | 2.8 | % | -2.8 | % | — | 0.1 | % |
(1) | Includes all restaurants opened in the period indicated. | |
(2) | A unit is included in the year-over-year change in AWS in the thirteenth month of operation. | |
(3) | A unit becomes comparable in the eighteenth month of operation. |
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