Exhibit 99.1
P.F. CHANG’S CHINA BISTRO, INC.
P.F. CHANG’S REPORTS FOURTH QUARTER EARNINGS
SCOTTSDALE, ARIZONA, February 11, 2009— P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported consolidated income from continuing operations of $7.5 million for the fourth quarter ended December 28, 2008 compared to $9.6 million for the fourth quarter of the prior year. Net income for the fourth quarter of fiscal 2008 totaled $5.4 million compared to $7.0 million for the fourth quarter of the prior year.
Net income for the fourth quarter of fiscal 2008 includes a loss from discontinued operations related to the Company’s previously announced decision to close 10 underperforming Pei Wei restaurants, comprised primarily of $2.7 million in pretax lease termination and severance charges. All current and historical operating results related to the closed Pei Wei restaurants are reflected within discontinued operations for all periods presented.
Income from continuing operations per diluted share for the fourth quarter of fiscal 2008 was $0.31 compared to $0.38 for the fourth quarter of the prior year. Net income per diluted share was $0.23 compared to $0.28 in the prior year.
(000 except per share data) | 4Q08 | 4Q07 | ||||||
Revenues | $ | 294,797 | $ | 289,399 | ||||
Income from continuing operations | $ | 7,489 | $ | 9,636 | ||||
Net income | $ | 5,445 | $ | 7,046 | ||||
Income from continuing operations per diluted share | $ | 0.31 | $ | 0.38 | ||||
Net income per diluted share | $ | 0.23 | $ | 0.28 | ||||
Weighted average shares — diluted | 23,851 | 25,257 |
For the fourth quarter of 2008, consolidated revenues were $294.8 million compared to $289.4 million for the fourth quarter of 2007. Sales at company-owned P.F. Chang’s China Bistro restaurants accounted for $225.4 million of consolidated revenues and sales at the Company’s Pei Wei Asian Diner restaurants accounted for $69.3 million of consolidated revenues.
For the 13 weeks ended December 28, 2008, comparable store sales decreased 7.1% at the Bistro as a significant reduction in overall guest traffic more than offset the benefit of a 1% to 2% average check increase reflecting the net impact of price increases and menu mix changes. Comparable store sales at the Bistro decreased 6.0%, 4.8%, and 10.2% in October, November and December, respectively.
For the 13 weeks ended December 28, 2008, comparable store sales decreased 6.1% at Pei Wei due to a significant reduction in overall guest traffic combined with a flat average check, reflecting the impact of price increases that were fully offset by menu mix changes. Comparable store sales at Pei Wei decreased 6.1%, 6.5%, and 5.7% in October, November and December, respectively.
During the fourth quarter of 2008, the Company opened seven new Bistro and four new Pei Wei restaurants.
2009 Expectations
The Company anticipates a significant reduction in average weekly sales during fiscal 2009, with an estimated decrease of approximately 6% at both the Bistro and Pei Wei. Consolidated revenues for fiscal 2009 are expected to be flat compared to fiscal 2008 due to projected average weekly sales declines offset by the benefit of a full year of revenues for restaurants that opened during fiscal 2008 combined with revenues from anticipated new restaurant openings during fiscal 2009.
As a result of lower anticipated average weekly sales, the Company expects to experience deleverage of certain operating expenses, primarily related to fixed costs such as labor and depreciation. Overall restaurant operating margins for fiscal 2009 are projected to decline approximately 150 basis points compared to fiscal 2008.
The Company has reduced its planned 2009 new restaurant development and currently expects to open 4 to 6 new Bistro restaurants and 2 to 4 new Pei Wei restaurants during fiscal 2009. As a result, the Company anticipates a significant reduction in preopening expenses for fiscal 2009.
Overall, the Company expects consolidated income from continuing operations for fiscal 2009 to decline approximately 20% compared to fiscal 2008.
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.
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, traditional Chinese 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.
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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 these costs are solely related to expansion of the Company’s business, they make an accurate assessment of the health of its ongoing operations more difficult and are therefore excluded. Additionally, general and administrative expenses are only included in the Company’s consolidated financial presentation as these costs relate to support of both restaurant concepts and are generally not specifically identifiable to individual restaurant operations. As the Company’s expansion is funded entirely from its ongoing restaurant operations, restaurant operating income is a primary 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.
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, 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.
Contacts:
Investor: | Mark Mumford | (480) 888-3000 | mark.mumford@pfcb.com | |||
Media: | Pete Marino | (312) 339-8833 | pmarino@digcommunications.com | |||
Dig Communications |
Page 3 of 10
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 | ||||||||
December 28, | December 30, | |||||||
2008 | 2007 | |||||||
Revenues | $ | 294,797 | $ | 289,399 | ||||
Costs and expenses: | ||||||||
Cost of sales | 79,600 | 79,705 | ||||||
Labor | 95,500 | 95,873 | ||||||
Operating | 49,339 | 46,366 | ||||||
Occupancy | 17,402 | 16,420 | ||||||
General & administrative | 21,687 | 17,604 | ||||||
Depreciation & amortization | 17,956 | 15,732 | ||||||
Preopening expense | 2,311 | 4,151 | ||||||
Partner investment expense | (364 | ) | (72 | ) | ||||
Total costs and expenses | 283,431 | 275,779 | ||||||
Income from operations | 11,366 | 13,620 | ||||||
Interest and other expense, net | (584 | ) | (612 | ) | ||||
Minority interest | (374 | ) | (593 | ) | ||||
Income from continuing operations before provision for income taxes | 10,408 | 12,415 | ||||||
Provision for income taxes | (2,919 | ) | (2,779 | ) | ||||
Income from continuing operations | 7,489 | 9,636 | ||||||
Loss from discontinued operations, net of tax | (2,044 | ) | (2,590 | ) | ||||
Net income | $ | 5,445 | $ | 7,046 | ||||
Basic income per share: | ||||||||
Income from continuing operations | $ | 0.32 | $ | 0.39 | ||||
Loss from discontinued operations, net of tax | (0.09 | ) | (0.11 | ) | ||||
Net income | $ | 0.23 | $ | 0.28 | ||||
Diluted income per share: | ||||||||
Income from continuing operations | $ | 0.31 | $ | 0.38 | ||||
Loss from discontinued operations, net of tax | (0.08 | ) | (0.10 | ) | ||||
Net income | $ | 0.23 | $ | 0.28 | ||||
Weighted average shares used in computation — basic | 23,623 | 24,923 | ||||||
Weighted average shares used in computation — diluted | 23,851 | 25,257 | ||||||
Page 4 of 10
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)
52 Weeks Ended | ||||||||
December 28, | December 30, | |||||||
2008 | 2007 | |||||||
Revenues | $ | 1,198,124 | $ | 1,084,193 | ||||
Costs and expenses: | ||||||||
Cost of sales | 325,630 | 297,242 | ||||||
Labor | 396,911 | 364,074 | ||||||
Operating | 198,967 | 172,147 | ||||||
Occupancy | 69,809 | 62,164 | ||||||
General & administrative | 77,488 | 66,968 | ||||||
Depreciation & amortization | 68,711 | 55,988 | ||||||
Preopening expense | 8,457 | 14,310 | ||||||
Partner investment expense | (354 | ) | (2,012 | ) | ||||
Total costs and expenses | 1,145,619 | 1,030,881 | ||||||
Income from operations | 52,505 | 53,312 | ||||||
Interest and other expense, net | (3,362 | ) | (100 | ) | ||||
Minority interest | (1,933 | ) | (4,169 | ) | ||||
Income from continuing operations before provision for income taxes | 47,210 | 49,043 | ||||||
Provision for income taxes | (12,193 | ) | (12,420 | ) | ||||
Income from continuing operations | 35,017 | 36,623 | ||||||
Loss from discontinued operations, net of tax | (7,591 | ) | (4,560 | ) | ||||
Net income | $ | 27,426 | $ | 32,063 | ||||
Basic income per share: | ||||||||
Income from continuing operations | $ | 1.47 | $ | 1.44 | ||||
Loss from discontinued operations, net of tax | (0.32 | ) | (0.18 | ) | ||||
Net income | $ | 1.15 | $ | 1.26 | ||||
Diluted income per share: | ||||||||
Income from continuing operations | $ | 1.45 | $ | 1.41 | ||||
Loss from discontinued operations, net of tax | (0.31 | ) | (0.17 | ) | ||||
Net income | $ | 1.14 | $ | 1.24 | ||||
Weighted average shares used in computation — basic | 23,776 | 25,473 | ||||||
Weighted average shares used in computation — diluted | 24,080 | 25,899 | ||||||
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P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
Supplemental Financial Information
2006 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | 1Q08 | 2Q08 | 3Q08 | 4Q08 | 2008 | ||||||||||||||||||||||||||||||||||
Units | 254 | 262 | 275 | 290 | 306 | 306 | 322 | 331 | 337 | 348 | 348 | |||||||||||||||||||||||||||||||||
Sales weeks | 11,645 | 3,353 | 3,490 | 3,669 | 3,931 | 14,443 | 4,122 | 4,256 | 4,328 | 4,464 | 17,170 | |||||||||||||||||||||||||||||||||
AWS | 80,044 | 78,143 | 75,834 | 73,077 | 73,620 | 75,067 | 74,216 | 70,849 | 68,363 | 66,039 | 69,780 | |||||||||||||||||||||||||||||||||
Revenues | 932,116 | 262,014 | 264,660 | 268,120 | 289,399 | 1,084,193 | 305,917 | 301,533 | 295,877 | 294,797 | 1,198,124 | |||||||||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 254,923 | 72,154 | 72,143 | 73,240 | 79,705 | 297,242 | 83,530 | 82,132 | 80,368 | 79,600 | 325,630 | |||||||||||||||||||||||||||||||||
Labor | 307,573 | 88,118 | 89,310 | 90,773 | 95,873 | 364,074 | 103,381 | 99,971 | 98,059 | 95,500 | 396,911 | |||||||||||||||||||||||||||||||||
Operating | 145,309 | 40,727 | 41,734 | 43,320 | 46,366 | 172,147 | 48,061 | 49,366 | 52,201 | 49,339 | 198,967 | |||||||||||||||||||||||||||||||||
Occupancy | 51,958 | 14,706 | 15,326 | 15,712 | 16,420 | 62,164 | 17,626 | 17,511 | 17,270 | 17,402 | 69,809 | |||||||||||||||||||||||||||||||||
Minority interest | 8,116 | 1,647 | 1,121 | 808 | 593 | 4,169 | 705 | 487 | 367 | 374 | 1,933 | |||||||||||||||||||||||||||||||||
Depreciation & amortization | 44,378 | 12,433 | 13,294 | 14,529 | 15,732 | 55,988 | 16,370 | 17,150 | 17,235 | 17,956 | 68,711 | |||||||||||||||||||||||||||||||||
Restaurant operating income | 119,859 | 32,229 | 31,732 | 29,738 | 34,710 | 128,409 | 36,244 | 34,916 | 30,377 | 34,626 | 136,163 | |||||||||||||||||||||||||||||||||
Development costs | ||||||||||||||||||||||||||||||||||||||||||||
Preopening expenses | 11,922 | 2,278 | 3,138 | 4,743 | 4,151 | 14,310 | 2,819 | 1,808 | 1,519 | 2,311 | 8,457 | |||||||||||||||||||||||||||||||||
Partner investment expense | 4,371 | (1,401 | ) | (468 | ) | (71 | ) | (72 | ) | (2,012 | ) | 411 | (500 | ) | 99 | (364 | ) | (354 | ) | |||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative (1) | 56,030 | 16,494 | 15,684 | 17,186 | 17,604 | 66,968 | 18,521 | 19,128 | 18,152 | 21,687 | 77,488 | |||||||||||||||||||||||||||||||||
Interest and other (income) expense, net | (1,315 | ) | (343 | ) | (179 | ) | 10 | 612 | 100 | 934 | 949 | 895 | 584 | 3,362 | ||||||||||||||||||||||||||||||
Provision for income taxes | 14,078 | 4,168 | 3,606 | 1,867 | 2,779 | 12,420 | 3,581 | 3,636 | 2,057 | 2,919 | 12,193 | |||||||||||||||||||||||||||||||||
Income from continuing operations | 34,773 | 11,033 | 9,951 | 6,003 | 9,636 | 36,623 | 9,978 | 9,895 | 7,655 | 7,489 | 35,017 | |||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (1,520 | ) | (568 | ) | (674 | ) | (728 | ) | (2,590 | ) | (4,560 | ) | (329 | ) | (525 | ) | (4,693 | ) | (2,044 | ) | (7,591 | ) | ||||||||||||||||||||||
Net income | 33,253 | 10,465 | 9,277 | 5,275 | 7,046 | 32,063 | 9,649 | 9,370 | 2,962 | 5,445 | 27,426 | |||||||||||||||||||||||||||||||||
Income from continuing operations per FDS | $ | 1.30 | $ | 0.42 | $ | 0.38 | $ | 0.23 | $ | 0.38 | $ | 1.41 | $ | 0.41 | $ | 0.41 | $ | 0.32 | $ | 0.31 | $ | 1.45 | ||||||||||||||||||||||
Fully diluted shares (FDS) | 26,737 | 26,046 | 26,129 | 26,105 | 25,257 | 25,899 | 24,295 | 24,247 | 23,927 | 23,851 | 24,080 | |||||||||||||||||||||||||||||||||
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 | 27.3 | % | 27.5 | % | 27.3 | % | 27.3 | % | 27.5 | % | 27.4 | % | 27.3 | % | 27.2 | % | 27.2 | % | 27.0 | % | 27.2 | % | ||||||||||||||||||||||
Labor | 33.0 | % | 33.6 | % | 33.7 | % | 33.9 | % | 33.1 | % | 33.6 | % | 33.8 | % | 33.2 | % | 33.1 | % | 32.4 | % | 33.1 | % | ||||||||||||||||||||||
Operating | 15.6 | % | 15.5 | % | 15.8 | % | 16.2 | % | 16.0 | % | 15.9 | % | 15.7 | % | 16.4 | % | 17.6 | % | 16.7 | % | 16.6 | % | ||||||||||||||||||||||
Occupancy | 5.6 | % | 5.6 | % | 5.8 | % | 5.9 | % | 5.7 | % | 5.7 | % | 5.8 | % | 5.8 | % | 5.8 | % | 5.9 | % | 5.8 | % | ||||||||||||||||||||||
Minority interest | 0.9 | % | 0.6 | % | 0.4 | % | 0.3 | % | 0.2 | % | 0.4 | % | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||||||||||||||||
Depreciation & amortization | 4.8 | % | 4.7 | % | 5.0 | % | 5.4 | % | 5.4 | % | 5.2 | % | 5.4 | % | 5.7 | % | 5.8 | % | 6.1 | % | 5.7 | % | ||||||||||||||||||||||
Restaurant operating income | 12.9 | % | 12.3 | % | 12.0 | % | 11.1 | % | 12.0 | % | 11.8 | % | 11.8 | % | 11.6 | % | 10.3 | % | 11.7 | % | 11.4 | % | ||||||||||||||||||||||
Preopening expenses | 1.3 | % | 0.9 | % | 1.2 | % | 1.8 | % | 1.4 | % | 1.3 | % | 0.9 | % | 0.6 | % | 0.5 | % | 0.8 | % | 0.7 | % | ||||||||||||||||||||||
Partner investment expense | 0.5 | % | (0.5 | %) | (0.2 | %) | (0.0 | %) | (0.0 | %) | (0.2 | %) | 0.1 | % | (0.2 | %) | 0.0 | % | (0.1 | %) | (0.0 | %) | ||||||||||||||||||||||
General and administrative (1) | 6.0 | % | 6.3 | % | 5.9 | % | 6.4 | % | 6.1 | % | 6.2 | % | 6.1 | % | 6.3 | % | 6.1 | % | 7.4 | % | 6.5 | % | ||||||||||||||||||||||
Interest and other (income) expense, net | (0.1 | %) | (0.1 | %) | (0.1 | %) | 0.0 | % | 0.2 | % | 0.0 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.2 | % | 0.3 | % | ||||||||||||||||||||||
Provision for income taxes | 1.5 | % | 1.6 | % | 1.4 | % | 0.7 | % | 1.0 | % | 1.1 | % | 1.2 | % | 1.2 | % | 0.7 | % | 1.0 | % | 1.0 | % | ||||||||||||||||||||||
Income from continuing operations | 3.7 | % | 4.2 | % | 3.8 | % | 2.2 | % | 3.3 | % | 3.4 | % | 3.3 | % | 3.3 | % | 2.6 | % | 2.5 | % | 2.9 | % | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (0.2 | %) | (0.2 | %) | (0.3 | %) | (0.3 | %) | (0.9 | %) | (0.4 | %) | (0.1 | %) | (0.2 | %) | (1.6 | %) | (0.7 | %) | (0.6 | %) | ||||||||||||||||||||||
Net income | 3.6 | % | 4.0 | % | 3.5 | % | 2.0 | % | 2.4 | % | 3.0 | % | 3.2 | % | 3.1 | % | 1.0 | % | 1.8 | % | 2.3 | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating income | 119,859 | 32,229 | 31,732 | 29,738 | 34,710 | 128,409 | 36,244 | 34,916 | 30,377 | 34,626 | 136,163 | |||||||||||||||||||||||||||||||||
Add: Minority interest | 8,116 | 1,647 | 1,121 | 808 | 593 | 4,169 | 705 | 487 | 367 | 374 | 1,933 | |||||||||||||||||||||||||||||||||
Less: General and administrative (1) | (56,030 | ) | (16,494 | ) | (15,684 | ) | (17,186 | ) | (17,604 | ) | (66,968 | ) | (18,521 | ) | (19,128 | ) | (18,152 | ) | (21,687 | ) | (77,488 | ) | ||||||||||||||||||||||
Less: Preopening expenses | (11,922 | ) | (2,278 | ) | (3,138 | ) | (4,743 | ) | (4,151 | ) | (14,310 | ) | (2,819 | ) | (1,808 | ) | (1,519 | ) | (2,311 | ) | (8,457 | ) | ||||||||||||||||||||||
Less: Partner investment expense | (4,371 | ) | 1,401 | 468 | 71 | 72 | 2,012 | (411 | ) | 500 | (99 | ) | 364 | 354 | ||||||||||||||||||||||||||||||
Income from operations | 55,652 | 16,505 | 14,499 | 8,688 | 13,620 | 53,312 | 15,198 | 14,967 | 10,974 | 11,366 | 52,505 | |||||||||||||||||||||||||||||||||
Note : Consolidated results include the impact of Shared Services and Other as well as the Bistro and Pei Wei concepts.
(1) | Consolidated general and administrative expenses includes the costs of supporting the Company, including all concepts. |
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Concept: P.F. Chang’s China Bistro
Supplemental Financial Information
Supplemental Financial Information
2006 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | 1Q08 | 2Q08 | 3Q08 | 4Q08 | 2008 | ||||||||||||||||||||||||||||||||||
Units | 152 | 153 | 157 | 162 | 172 | 172 | 177 | 182 | 182 | 189 | 189 | |||||||||||||||||||||||||||||||||
Sales weeks | 7,187 | 1,979 | 2,028 | 2,078 | 2,204 | 8,289 | 2,275 | 2,330 | 2,355 | 2,413 | 9,373 | |||||||||||||||||||||||||||||||||
AWS | 105,265 | 104,592 | 102,615 | 100,325 | 102,514 | 102,486 | 103,763 | 99,502 | 96,139 | 93,427 | 98,127 | |||||||||||||||||||||||||||||||||
Revenues | 756,634 | 207,028 | 208,174 | 208,544 | 225,997 | 849,743 | 236,089 | 231,972 | 226,443 | 225,459 | 919,963 | |||||||||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 206,567 | 56,781 | 56,696 | 56,943 | 62,158 | 232,578 | 64,410 | 62,999 | 61,430 | 61,072 | 249,911 | |||||||||||||||||||||||||||||||||
Labor | 247,097 | 69,312 | 69,827 | 69,946 | 73,834 | 282,919 | 79,318 | 76,153 | 74,387 | 72,109 | 301,967 | |||||||||||||||||||||||||||||||||
Operating | 115,465 | 31,684 | 32,194 | 32,981 | 35,004 | 131,863 | 36,324 | 36,603 | 38,556 | 37,600 | 149,083 | |||||||||||||||||||||||||||||||||
Occupancy | 40,683 | 11,217 | 11,598 | 11,739 | 12,505 | 47,059 | 12,981 | 12,730 | 12,536 | 12,423 | 50,670 | |||||||||||||||||||||||||||||||||
Minority interest | 6,993 | 1,333 | 837 | 599 | 582 | 3,351 | 497 | 370 | 271 | 223 | 1,361 | |||||||||||||||||||||||||||||||||
Depreciation & amortization | 34,451 | 9,483 | 10,054 | 10,861 | 11,896 | 42,294 | 12,265 | 12,794 | 12,771 | 13,261 | 51,091 | |||||||||||||||||||||||||||||||||
Restaurant operating income | 105,378 | 27,218 | 26,968 | 25,475 | 30,018 | 109,679 | 30,294 | 30,323 | 26,492 | 28,771 | 115,880 | |||||||||||||||||||||||||||||||||
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 | 27.3 | % | 27.4 | % | 27.2 | % | 27.3 | % | 27.5 | % | 27.4 | % | 27.3 | % | 27.2 | % | 27.1 | % | 27.1 | % | 27.2 | % | ||||||||||||||||||||||
Labor | 32.7 | % | 33.5 | % | 33.5 | % | 33.5 | % | 32.7 | % | 33.3 | % | 33.6 | % | 32.8 | % | 32.9 | % | 32.0 | % | 32.8 | % | ||||||||||||||||||||||
Operating | 15.3 | % | 15.3 | % | 15.5 | % | 15.8 | % | 15.5 | % | 15.5 | % | 15.4 | % | 15.8 | % | 17.0 | % | 16.7 | % | 16.2 | % | ||||||||||||||||||||||
Occupancy | 5.4 | % | 5.4 | % | 5.6 | % | 5.6 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | ||||||||||||||||||||||
Minority interest | 0.9 | % | 0.6 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||||
Depreciation & amortization | 4.6 | % | 4.6 | % | 4.8 | % | 5.2 | % | 5.3 | % | 5.0 | % | 5.2 | % | 5.5 | % | 5.6 | % | 5.9 | % | 5.6 | % | ||||||||||||||||||||||
Restaurant operating income | 13.9 | % | 13.1 | % | 13.0 | % | 12.2 | % | 13.3 | % | 12.9 | % | 12.8 | % | 13.1 | % | 11.7 | % | 12.7 | % | 12.6 | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating income | 105,378 | 27,218 | 26,968 | 25,475 | 30,018 | 109,679 | 30,294 | 30,323 | 26,492 | 28,771 | 115,880 | |||||||||||||||||||||||||||||||||
Add: Minority interest | 6,993 | 1,333 | 837 | 599 | 582 | 3,351 | 497 | 370 | 271 | 223 | 1,361 | |||||||||||||||||||||||||||||||||
Less: Preopening expenses | (8,004 | ) | (1,256 | ) | (1,790 | ) | (2,974 | ) | (2,992 | ) | (9,012 | ) | (1,729 | ) | (1,271 | ) | (732 | ) | (1,945 | ) | (5,677 | ) | ||||||||||||||||||||||
Less: Partner investment expense | (3,475 | ) | 1,926 | 753 | 433 | 246 | 3,358 | 245 | 500 | 103 | 218 | 1,066 | ||||||||||||||||||||||||||||||||
Income from operations | 100,892 | 29,221 | 26,768 | 23,533 | 27,854 | 107,376 | 29,307 | 29,922 | 26,134 | 27,267 | 112,630 | |||||||||||||||||||||||||||||||||
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
Supplemental Financial Information
2006 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | 1Q08 | 2Q08 | 3Q08 | 4Q08 | 2008 | ||||||||||||||||||||||||||||||||||
Units | 102 | 109 | 118 | 128 | 134 | 134 | 145 | 149 | 155 | 159 | 159 | |||||||||||||||||||||||||||||||||
Sales weeks | 4,458 | 1,374 | 1,462 | 1,591 | 1,727 | 6,154 | 1,847 | 1,926 | 1,973 | 2,051 | 7,797 | |||||||||||||||||||||||||||||||||
AWS | 39,363 | 40,014 | 38,632 | 37,445 | 36,712 | 38,095 | 37,806 | 36,117 | 35,192 | 33,806 | 35,675 | |||||||||||||||||||||||||||||||||
Revenues | 175,482 | 54,986 | 56,486 | 59,576 | 63,402 | 234,450 | 69,828 | 69,561 | 69,434 | 69,338 | 278,161 | |||||||||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 48,356 | 15,373 | 15,447 | 16,297 | 17,547 | 64,664 | 19,120 | 19,133 | 18,938 | 18,528 | 75,719 | |||||||||||||||||||||||||||||||||
Labor | 60,476 | 18,806 | 19,483 | 20,827 | 22,039 | 81,155 | 24,063 | 23,818 | 23,672 | 23,391 | 94,944 | |||||||||||||||||||||||||||||||||
Operating | 29,844 | 9,043 | 9,540 | 10,339 | 11,362 | 40,284 | 11,737 | 12,763 | 13,645 | 11,739 | 49,884 | |||||||||||||||||||||||||||||||||
Occupancy | 11,275 | 3,489 | 3,728 | 3,973 | 3,915 | 15,105 | 4,645 | 4,781 | 4,734 | 4,979 | 19,139 | |||||||||||||||||||||||||||||||||
Minority interest | 1,123 | 314 | 284 | 209 | 11 | 818 | 208 | 117 | 96 | 151 | 572 | |||||||||||||||||||||||||||||||||
Depreciation & amortization | 8,790 | 2,678 | 2,958 | 3,197 | 3,445 | 12,278 | 3,774 | 3,995 | 4,119 | 4,270 | 16,158 | |||||||||||||||||||||||||||||||||
Restaurant operating income | 15,618 | 5,283 | 5,046 | 4,734 | 5,083 | 20,146 | 6,281 | 4,954 | 4,230 | 6,280 | 21,745 | |||||||||||||||||||||||||||||||||
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 | 27.6 | % | 28.0 | % | 27.3 | % | 27.4 | % | 27.7 | % | 27.6 | % | 27.4 | % | 27.5 | % | 27.3 | % | 26.7 | % | 27.2 | % | ||||||||||||||||||||||
Labor | 34.5 | % | 34.2 | % | 34.5 | % | 35.0 | % | 34.8 | % | 34.6 | % | 34.5 | % | 34.2 | % | 34.1 | % | 33.7 | % | 34.1 | % | ||||||||||||||||||||||
Operating | 17.0 | % | 16.4 | % | 16.9 | % | 17.4 | % | 17.9 | % | 17.2 | % | 16.8 | % | 18.3 | % | 19.7 | % | 16.9 | % | 17.9 | % | ||||||||||||||||||||||
Occupancy | 6.4 | % | 6.3 | % | 6.6 | % | 6.7 | % | 6.2 | % | 6.4 | % | 6.7 | % | 6.9 | % | 6.8 | % | 7.2 | % | 6.9 | % | ||||||||||||||||||||||
Minority interest | 0.6 | % | 0.6 | % | 0.5 | % | 0.4 | % | 0.0 | % | 0.3 | % | 0.3 | % | 0.2 | % | 0.1 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||||||
Depreciation & amortization | 5.0 | % | 4.9 | % | 5.2 | % | 5.4 | % | 5.4 | % | 5.2 | % | 5.4 | % | 5.7 | % | 5.9 | % | 6.2 | % | 5.8 | % | ||||||||||||||||||||||
Restaurant operating income | 8.9 | % | 9.6 | % | 8.9 | % | 7.9 | % | 8.0 | % | 8.6 | % | 9.0 | % | 7.1 | % | 6.1 | % | 9.1 | % | 7.8 | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating income | 15,618 | 5,283 | 5,046 | 4,734 | 5,083 | 20,146 | 6,281 | 4,954 | 4,230 | 6,280 | 21,745 | |||||||||||||||||||||||||||||||||
Add: Minority interest | 1,123 | 314 | 284 | 209 | 11 | 818 | 208 | 117 | 96 | 151 | 572 | |||||||||||||||||||||||||||||||||
Less: Preopening expenses | (3,919 | ) | (1,022 | ) | (1,348 | ) | (1,769 | ) | (1,159 | ) | (5,298 | ) | (1,090 | ) | (537 | ) | (787 | ) | (366 | ) | (2,780 | ) | ||||||||||||||||||||||
Less: Partner investment expense | (896 | ) | (525 | ) | (285 | ) | (362 | ) | (174 | ) | (1,346 | ) | (656 | ) | — | (202 | ) | 146 | (712 | ) | ||||||||||||||||||||||||
Income from operations | 11,926 | 4,050 | 3,697 | 2,812 | 3,761 | 14,320 | 4,743 | 4,534 | 3,337 | 6,211 | 18,825 | |||||||||||||||||||||||||||||||||
Note: General and administrative expenses are reflected in the Company’s consolidated results.
(A) | All current and historical operating results related to the 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-2001 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Total | |||||||||||||||||||||||||||||||
Units | 51 | 13 | 14 | 18 | 18 | 18 | 20 | 20 | 17 | 189 | ||||||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 77,380 | 19,067 | 18,306 | 25,155 | 20,281 | 21,118 | 23,785 | 26,976 | 3,992 | 236,060 | ||||||||||||||||||||||||||||||
2Q08 | 74,274 | 18,060 | 17,363 | 24,390 | 19,911 | 20,332 | 23,076 | 25,122 | 9,312 | 231,840 | ||||||||||||||||||||||||||||||
3Q08 | 71,081 | 17,282 | 16,651 | 23,528 | 20,016 | 19,341 | 22,201 | 24,190 | 12,116 | 226,406 | ||||||||||||||||||||||||||||||
4Q08 | 71,412 | 17,021 | 16,552 | 22,667 | 18,645 | 19,084 | 21,640 | 22,468 | 15,949 | 225,438 | ||||||||||||||||||||||||||||||
2008 | 294,147 | 71,430 | 68,872 | 95,740 | 78,853 | 79,875 | 90,702 | 98,756 | 41,369 | 919,744 | ||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 116,712 | 112,823 | 100,580 | 107,502 | 86,670 | 90,248 | 91,482 | 103,752 | 102,364 | 103,763 | ||||||||||||||||||||||||||||||
2Q08 | 112,028 | 106,861 | 95,399 | 104,231 | 85,088 | 86,890 | 88,754 | 96,623 | 99,059 | 99,502 | ||||||||||||||||||||||||||||||
3Q08 | 109,020 | 102,261 | 91,487 | 100,548 | 85,539 | 82,654 | 85,390 | 93,040 | 93,196 | 96,139 | ||||||||||||||||||||||||||||||
4Q08 | 107,710 | 100,719 | 90,947 | 96,867 | 79,681 | 81,556 | 83,230 | 86,418 | 90,109 | 93,427 | ||||||||||||||||||||||||||||||
2008 | 111,377 | 105,666 | 94,603 | 102,287 | 84,245 | 85,337 | 87,214 | 94,958 | 94,019 | 98,127 | ||||||||||||||||||||||||||||||
Year-Over-Year Change in AWS (2) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | -0.4 | % | 1.4 | % | 0.6 | % | 0.8 | % | 0.6 | % | 0.2 | % | -7.9 | % | 3.5 | % | — | -0.8 | % | |||||||||||||||||||||
2Q08 | -3.0 | % | -0.5 | % | 0.0 | % | -0.5 | % | -2.8 | % | -2.1 | % | -4.9 | % | -13.9 | % | — | -2.7 | % | |||||||||||||||||||||
3Q08 | -3.9 | % | -1.8 | % | 0.0 | % | -2.7 | % | -2.1 | % | -5.8 | % | -4.5 | % | -12.5 | % | — | -3.8 | % | |||||||||||||||||||||
4Q08 | -6.9 | % | -7.0 | % | -3.6 | % | -7.3 | % | -7.6 | % | -8.6 | % | -7.7 | % | -20.2 | % | — | -8.5 | % | |||||||||||||||||||||
2008 | -3.5 | % | -2.0 | % | -0.7 | % | -2.4 | % | -3.0 | % | -4.1 | % | -6.3 | % | -17.2 | % | — | -4.0 | % | |||||||||||||||||||||
Year-Over-Year Change Comp Store Sales (3) | ||||||||||||||||||||||||||||||||||||||||
Units | 51 | 13 | 14 | 18 | 18 | 18 | 20 | 7 | — | 159 | ||||||||||||||||||||||||||||||
1Q08 | -0.4 | % | 1.4 | % | 0.6 | % | 0.8 | % | 0.6 | % | 0.2 | % | -2.0 | % | — | — | 0.1 | % | ||||||||||||||||||||||
2Q08 | -3.0 | % | -0.5 | % | 0.0 | % | -0.5 | % | -2.8 | % | -2.1 | % | -4.7 | % | — | — | -2.3 | % | ||||||||||||||||||||||
3Q08 | -3.4 | % | -1.8 | % | 0.0 | % | -2.7 | % | -2.1 | % | -5.8 | % | -4.5 | % | -3.4 | % | — | -3.1 | % | |||||||||||||||||||||
4Q08 | -6.9 | % | -7.0 | % | -3.6 | % | -7.3 | % | -7.6 | % | -8.6 | % | -7.7 | % | -8.7 | % | — | -7.1 | % | |||||||||||||||||||||
2008 | -3.4 | % | -2.0 | % | -0.7 | % | -2.4 | % | -3.0 | % | -4.1 | % | -5.1 | % | -7.7 | % | — | -3.2 | % |
(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. |
Page 9 of 10
Pei Wei Asian Diner
Supplemental Sales Information (4)
Year of Unit Opening (1)
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Total | |||||||||||||||||||||||||||||||
Units | 1 | 4 | 11 | 17 | 19 | 23 | 27 | 32 | 25 | 159 | ||||||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 730 | 2,086 | 5,725 | 8,942 | 10,269 | 11,104 | 12,798 | 13,885 | 4,289 | 69,828 | ||||||||||||||||||||||||||||||
2Q08 | 697 | 1,988 | 5,393 | 8,570 | 9,968 | 10,729 | 12,417 | 13,321 | 6,478 | 69,561 | ||||||||||||||||||||||||||||||
3Q08 | 679 | 1,900 | 5,272 | 8,387 | 9,683 | 10,518 | 12,204 | 13,107 | 7,684 | 69,434 | ||||||||||||||||||||||||||||||
4Q08 | 654 | 1,795 | 5,085 | 8,083 | 9,437 | 10,247 | 11,778 | 12,481 | 9,778 | 69,338 | ||||||||||||||||||||||||||||||
2008 | 2,760 | 7,769 | 21,475 | 33,982 | 39,357 | 42,598 | 49,197 | 52,794 | 28,229 | 278,161 | ||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 56,165 | 40,115 | 40,034 | 40,460 | 41,575 | 37,138 | 36,463 | 33,372 | 40,863 | 37,806 | ||||||||||||||||||||||||||||||
2Q08 | 53,587 | 38,234 | 37,713 | 38,776 | 40,358 | 35,883 | 35,375 | 32,024 | 35,204 | 36,117 | ||||||||||||||||||||||||||||||
3Q08 | 52,256 | 36,548 | 36,867 | 37,949 | 39,204 | 35,177 | 34,770 | 31,506 | 33,265 | 35,192 | ||||||||||||||||||||||||||||||
4Q08 | 50,326 | 34,502 | 35,559 | 36,575 | 38,205 | 34,272 | 33,555 | 30,002 | 31,644 | 33,806 | ||||||||||||||||||||||||||||||
2008 | 53,084 | 37,350 | 37,543 | 38,440 | 39,836 | 35,618 | 35,041 | 31,726 | 34,053 | 35,675 | ||||||||||||||||||||||||||||||
Year-Over-Year Change in AWS (2) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | -6.7 | % | -8.4 | % | -7.6 | % | -4.7 | % | -0.4 | % | -0.1 | % | -2.1 | % | -18.9 | % | — | -3.3 | % | |||||||||||||||||||||
2Q08 | -5.5 | % | -5.1 | % | -8.1 | % | -7.0 | % | -1.6 | % | -0.6 | % | -1.6 | % | -15.1 | % | — | -4.3 | % | |||||||||||||||||||||
3Q08 | -0.9 | % | -2.3 | % | -4.9 | % | -3.9 | % | -3.7 | % | -2.5 | % | -1.5 | % | -11.1 | % | — | -4.3 | % | |||||||||||||||||||||
4Q08 | -6.1 | % | -9.9 | % | -8.5 | % | -7.1 | % | -5.9 | % | -4.8 | % | -4.3 | % | -10.7 | % | — | -6.9 | % | |||||||||||||||||||||
2008 | -4.9 | % | -6.5 | % | -7.3 | % | -5.7 | % | -2.9 | % | -2.0 | % | -2.4 | % | -12.1 | % | — | -4.8 | % | |||||||||||||||||||||
Year-Over-Year Change Comp Store Sales (3) | ||||||||||||||||||||||||||||||||||||||||
Units | 1 | 4 | 11 | 17 | 19 | 23 | 27 | 18 | — | 120 | ||||||||||||||||||||||||||||||
1Q08 | -6.7 | % | -8.4 | % | -7.6 | % | -4.7 | % | -0.4 | % | -0.1 | % | 1.7 | % | — | — | -2.3 | % | ||||||||||||||||||||||
2Q08 | -5.5 | % | -5.1 | % | -8.1 | % | -7.0 | % | -1.6 | % | -0.6 | % | -1.2 | % | -0.9 | % | — | -3.2 | % | |||||||||||||||||||||
3Q08 | -0.9 | % | -2.3 | % | -4.9 | % | -3.9 | % | -3.7 | % | -2.5 | % | -1.5 | % | -1.8 | % | — | -2.9 | % | |||||||||||||||||||||
4Q08 | -6.1 | % | -9.9 | % | -8.5 | % | -7.1 | % | -5.9 | % | -4.8 | % | -4.3 | % | -7.5 | % | — | -6.1 | % | |||||||||||||||||||||
2008 | -4.9 | % | -6.5 | % | -7.3 | % | -5.7 | % | -2.9 | % | -2.0 | % | -1.6 | % | -5.6 | % | — | -3.7 | % |
(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. | |
(4) | As a result of our decision to close 10 Pei Wei stores in fiscal 2008, the information presented above has been restated to reflect revenues and AWS for Pei Wei continuing operations for all periods presented. |
Page 10 of 10