exv99w1

Exhibit 99.1

P.F. Chang’s China Bistro, Inc.

P.F. CHANG’S EARNS $0.30 PER SHARE

SCOTTSDALE, ARIZONA, July 26, 2006 - P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported earnings of $8.1 million for the second quarter ended July 2, 2006 compared to $9.3 million for the second quarter of the prior year. Earnings per share for the second quarter were $0.30 as compared to $0.34 for the second quarter of the prior year.


(000 except per share data)	2Q06		2Q05

Revenues	$	225,981	$	198,056
Net Income	$	8,089	$	9,252
Diluted Earnings Per Share	$	0.30	$	0.34
Shares Used in diluted EPS calculation		27,258		26,977

As noted in the proforma schedules that follow, earnings for the second quarter reflect three accounting changes that affect year over year comparisons. First, the Company recorded $2.6 million in equity-based compensation expense this quarter under the new SFAS 123R rules implemented at the beginning of the year. Second, the Company modified its accounting policies related to utility and rebate accruals, recording an additional $2.2 million in utility costs and a credit of approximately $900,000 in additional rebates due from cost of sales and operating expense vendors. This change adjusts the balance sheet, and results in four months of utility expenses and two quarters of rebate credits being included in the second quarter. Third, the Company incurred approximately $500,000 in additional preopening expenses that previously would have been capitalized before FASB’s Staff Position No. 13.1 regarding lease accounting went into effect earlier this year.

2006 Expectations

Due primarily to our expectation of lower revenue trends at both of our concepts as well as wage rate pressures particularly at Pei Wei, the Company is revising its full year forecast earnings per share to $1.12. Expectations of comparable store sales growth at the Bistro declined from 2.6% and 1.5% to (0.1)% and (0.0)% in the third and fourth quarters, respectively. At Pei Wei, expectations of comparable store sales growth declined from 1.4% and 2.4% to (2.4)% and (1.1)%, in the third and fourth quarters, respectively.

Authorization of Share Repurchase Program and Credit Facility

On July 24^th, 2006 the Company’s Board of Directors authorized a program to repurchase up to $50 million of the Company’s outstanding shares from time to time in the open market or in private during the twelve-month period ending July 31, 2007, at prevailing market prices. The Company intends to initially use cash on hand to repurchase shares under the program.

Page 1 of 11

The Board has also authorized management to negotiate a $50 million revolving credit facility to provide additional liquidity and offer flexibility in funding the repurchase. J.P. Morgan Securities, Inc. will act as agent for the Company’s stock repurchase program.

The Company is hosting a conference call today at 1:00 pm ET in which management will provide further details on the second quarter results as well as its expectations for the balance of the year. 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 Asian cuisine in a relaxed, warm environment offering attentive counter service and take-out flexibility.

Note with respect to non-GAAP financial measures contained within Supplemental Financial Information

In addition to using GAAP results in evaluating our business, management also believes it is useful to measure results on a pro forma basis excluding the impact of equity-based compensation, the current quarter’s utility and rebate accrual adjustment and the additional preopening rental costs during the construction period which we now expense versus capitalize. Estimated equity-based compensation, which impacts both labor and G&A costs, is excluded in part because of the unpredictability of equity based compensation charges. These equity-based compensation charges are affected by factors that may change on each grant date, including the Company’s stock price, stock market volatility, expected option term, risk-free interest rates and expected dividends, all of which can create great variability from period to period. Additionally, the pro forma presentation provides a more comparable set of financial performance measures for the Company on a year over year basis, due to the fact that none of these expenses and adjustments was included in the comparable period of 2005. This also allows investors, as well as management, to focus on the cash generating capacity and performance of our restaurant concepts, both of which are material to our rate of growth and ability to finance that growth from our operations. The non-GAAP pro forma 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 GAAP to non-GAAP reconciliation on pages ten and eleven of this press release, for a comparison of each non-GAAP measure to the most comparable GAAP measure, as well as a reconciliation of the two measures.

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 revenues, earnings and comparable sales, as well as statements concerning the Company’s development schedule, 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 operate its restaurants profitably; the Company’s ability to hire, train and retain skilled management and other personnel; changes in consumer tastes and trends, and national, regional and local economic and weather conditions; changes in costs related to food, utilities, labor shortages, our ability to develop and construct our restaurants within projected budgets and time periods; the inherent unpredictability of estimating equity-based compensation expense under FAS 123(R); changes to existing accounting rules or differing interpretations to our current accounting practices 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	laurac@pfchangs.com
Investor:	Mark Mumford	markmu@pfchangs.com

Page 2 of 11

P.F. Chang’s China Bistro, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


	13 Weeks Ended			13 Weeks Ended
	Jul 2			Jul 3
	2006			2005

Revenues	$	225,981		$	198,056
Cost of sales		61,285			54,493
Labor		75,380			64,765
Operating		36,210			29,505
Occupancy		12,725			10,767
General & administrative		14,037			10,495
Depreciation & amortization		10,565			8,519
Preopening expenses		2,817			2,496
Partner investment expense		925			1,581

Total costs and expenses		213,944			182,621

Income from operations		12,037			15,435
Interest income, net and other income		568			447
Minority interest		(2,033	)		(2,176	)

Income before provision for income taxes		10,572			13,706
Provision for income taxes		(2,483	)		(4,454	)

Net income	$	8,089		$	9,252

Basic net income per share	$	0.30		$	0.35
Diluted net income per share	$	0.30		$	0.34
Shares used in calculation of basic EPS		26,546			26,221
Shares used in calculation of diluted EPS		27,258			26,977


	Percentage of Revenues
	Jul 2			Jul 3
	2006			2005

Revenues		100.0	%		100.0	%
Cost of sales		27.1	%		27.5	%
Labor		33.4	%		32.7	%
Operating		16.0	%		14.9	%
Occupancy		5.6	%		5.4	%
General & administrative		6.2	%		5.3	%
Depreciation & amortization		4.7	%		4.3	%
Preopening expenses		1.2	%		1.3	%
Partner investment expense		0.4	%		0.8	%

Total costs and expenses		94.7	%		92.2	%

Income from operations		5.3	%		7.8	%
Interest income, net and other income		0.3	%		0.2	%
Minority interest		-0.9	%		-1.1	%

Income before provision for income taxes		4.7	%		6.9	%
Provision for income taxes		-1.1	%		-2.2	%

Net income		3.6	%		4.7	%

Certain percentage amounts do not sum to total due to rounding.

Page 3 of 11

P.F. Chang’s China Bistro, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


	26 Weeks Ended			26 Weeks Ended
	Jul 2			Jul 3
	2006			2005

Revenues	$	454,594		$	392,270
Cost of sales		124,725			108,475
Labor		152,317			128,293
Operating		71,051			57,755
Occupancy		25,218			21,041
General & administrative		27,289			21,077
Depreciation & amortization		20,920			16,653
Preopening expenses		4,511			3,830
Partner investment expense		1,125			1,854

Total costs and expenses		427,156			358,978

Income from operations		27,438			33,292
Interest income, net and other income		1,060			905
Minority interest		(4,055	)		(4,452	)

Income before provision for income taxes		24,443			29,745
Provision for income taxes		(6,541	)		(9,667	)

Net income	$	17,902		$	20,078

Basic net income per share	$	0.68		$	0.77
Diluted net income per share	$	0.66		$	0.75
Shares used in calculation of basic EPS		26,516			26,169
Shares used in calculation of diluted EPS		27,249			26,935


	Percentage of Revenues
	Jul 2			Jul 3
	2006			2005

Revenues		100.0	%		100.0	%
Cost of sales		27.4	%		27.7	%
Labor		33.5	%		32.7	%
Operating		15.6	%		14.7	%
Occupancy		5.5	%		5.4	%
General & administrative		6.0	%		5.4	%
Depreciation & amortization		4.6	%		4.2	%
Preopening expenses		1.0	%		1.0	%
Partner investment expense		0.2	%		0.5	%

Total costs and expenses		94.0	%		91.5	%

Income from operations		6.0	%		8.5	%
Interest income, net and other income		0.2	%		0.2	%
Minority interest		-0.9	%		-1.1	%

Income before provision for income taxes		5.4	%		7.6	%
Provision for income taxes		-1.4	%		-2.5	%

Net income		3.9	%		5.1	%

Certain percentage amounts do not sum to total due to rounding.

Page 4 of 11

P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information — Pro Forma Forecast


				53 weeks																								Forecast									YOY
	2003			2004			1Q05			2Q05			3Q05			4Q05			2005			1Q06A			2Q06A			3Q06			4Q06			2006			Change

Units		130			168			170			182			193			208			208			214			225			239			260			260
Sales weeks		5,749			7,931			2,190			2,273			2,438			2,596			9,497			2,751			2,840			3,006			3,274			11,871			25.0	%
AWS		93,915			89,136			88,682			87,134			83,285			82,371			85,201			83,102			79,571			77,071			77,837			79,278			-7.0	%

Sales		539,917			706,941			194,214			198,056			203,049			213,834			809,153			228,613			225,981			231,675			254,838			941,107			16.3	%
per FDS	$	20.57		$	26.60		$	7.22		$	7.34		$	7.50		$	7.90		$	29.97		$	8.39		$	8.29		$	8.49		$	9.33		$	34.51

Operating costs
COS		152,788			200,736			53,982			54,493			56,010			60,149			224,634			63,440			61,862			63,699			70,170			259,171
Labor		176,428			233,325			63,528			64,765			67,836			70,114			266,243			76,593			75,008			77,445			85,241			314,287
Operating		73,660			99,528			28,250			29,505			31,490			33,002			122,247			34,841			34,271			35,342			38,589			143,043
Occupancy		28,914			37,693			10,274			10,767			11,182			10,570			42,793			12,493			12,725			13,259			14,525			53,002
Minority interest		7,887			10,078			2,276			2,176			1,974			1,801			8,227			2,022			2,033			2,041			2,273			8,370
G&A		28,692			34,662			10,582			10,495			9,759			10,281			41,117			11,406			11,848			12,644			13,007			48,905

Restaurant cash operating income		71,548			90,919			25,322			25,855			24,798			27,917			103,892			27,818			28,234			27,246			31,033			114,331			10.0	%

Development costs
Preopening		8,790			7,995			1,334			2,496			2,712			2,703			9,245			1,405			2,304			3,613			3,764			11,086			19.9	%
Partner investment expense		4,196			17,671			273			1,581			1,472			1,474			4,800			200			925			1,621			2,940			5,686			18.5	%

Other expenses
Depreciation & amortization		21,817			29,155			8,134			8,519			9,258			11,039			36,950			10,355			10,565			10,960			11,660			43,541			17.8	%
Equity-based compensation		—			—			—			—			—			—			—			2,190			2,561			3,222			3,222			11,195
Utility and rebate accrual adjustment		—			—			—			—			—			—			—			—			1,362			—			—			1,362
Preopening during construction period		—			—			—			—			—			—			—			289			513			539			384			1,725
Interest (income) expense		(466	)		(612	)		(458	)		(447	)		(530	)		(406	)		(1,841	)		(492	)		(568	)		(485	)		(480	)		(2,025	)		10.0	%
Tax provision		12,424			10,656			5,213			4,454			3,447			3,828			16,942			4,058			2,483			2,158			2,648			11,347			-33.0	%

Net income		24,787			26,054			10,826			9,252			8,439			9,279			37,796			9,813			8,089			5,618			6,895			30,414			-19.5	%
per FDS	$	0.94		$	0.98		$	0.40		$	0.34		$	0.31		$	0.34		$	1.40		$	0.36		$	0.30		$	0.21		$	0.25		$	1.12			-20.3	%

Fully diluted shares (FDS)		26,250			26,575			26,893			26,977			27,073			27,058			27,000			27,239			27,258			27,275			27,300			27,268			1.0	%

Sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
COS		28.3	%		28.4	%		27.8	%		27.5	%		27.6	%		28.1	%		27.8	%		27.7	%		27.4	%		27.5	%		27.5	%		27.5	%
Labor		32.7	%		33.0	%		32.7	%		32.7	%		33.4	%		32.8	%		32.9	%		33.5	%		33.2	%		33.4	%		33.4	%		33.4	%
Operating		13.6	%		14.1	%		14.5	%		14.9	%		15.5	%		15.4	%		15.1	%		15.2	%		15.2	%		15.3	%		15.1	%		15.2	%
Occupancy		5.4	%		5.3	%		5.3	%		5.4	%		5.5	%		4.9	%		5.3	%		5.5	%		5.6	%		5.7	%		5.7	%		5.6	%
Minority interest		1.5	%		1.4	%		1.2	%		1.1	%		1.0	%		0.8	%		1.0	%		0.9	%		0.9	%		0.9	%		0.9	%		0.9	%
G&A		5.3	%		4.9	%		5.4	%		5.3	%		4.8	%		4.8	%		5.1	%		5.0	%		5.2	%		5.5	%		5.1	%		5.2	%

Restaurant cash operating income		13.3	%		12.9	%		13.0	%		13.1	%		12.2	%		13.1	%		12.8	%		12.2	%		12.5	%		11.8	%		12.2	%		12.1	%

Preopening		1.6	%		1.1	%		0.7	%		1.3	%		1.3	%		1.3	%		1.1	%		0.6	%		1.0	%		1.6	%		1.5	%		1.2	%
Partner investment expense		0.8	%		2.5	%		0.1	%		0.8	%		0.7	%		0.7	%		0.6	%		0.1	%		0.4	%		0.7	%		1.2	%		0.6	%
Depreciation & amortization		4.0	%		4.1	%		4.2	%		4.3	%		4.6	%		5.2	%		4.6	%		4.5	%		4.7	%		4.7	%		4.6	%		4.6	%
Equity-based compensation		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		1.0	%		1.1	%		1.4	%		1.3	%		1.2	%
Utility and rebate accrual adjustment		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.6	%		0.0	%		0.0	%		0.1	%
Preopening during construction period		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%		0.2	%		0.2	%		0.2	%		0.2	%
Interest (income) expense		-0.1	%		-0.1	%		-0.2	%		-0.2	%		-0.3	%		-0.2	%		-0.2	%		-0.2	%		-0.3	%		-0.2	%		-0.2	%		-0.2	%
Tax provision		2.3	%		1.5	%		2.7	%		2.2	%		1.7	%		1.8	%		2.1	%		1.8	%		1.1	%		0.9	%		1.0	%		1.2	%

Net income		4.6	%		3.7	%		5.6	%		4.7	%		4.2	%		4.3	%		4.7	%		4.3	%		3.6	%		2.4	%		2.7	%		3.2	%

Page 5 of 11

Shared Services
Supplemental Financial Information — Pro Forma Forecast


		53 weeks																						Forecast
	2003	2004	1Q05			2Q05			3Q05			4Q05			2005			1Q06A			2Q06A			3Q06			4Q06			2006
Units
Sales weeks
AWS
Comp sales change

Sales
per FDS

Operating costs
COS
Labor
Operating
Occupancy
Minority interest
G&A (inc. in concepts for ‘03 & ‘04)				4,895			4,906			4,384			4,513			18,698			4,631			4,797			5,265			5,780			20,472

Restaurant cash operating income				(4,895	)		(4,906	)		(4,384	)		(4,513	)		(18,698	)		(4,631	)		(4,797	)		(5,265	)		(5,780	)		(20,472	)

Development costs
Preopening
Partner investment expense

Other expenses
Depreciation & amortization				149			142			263			326			880			280			281			290			290			1,141
Equity-based compensation																			988			1,219			1,602			1,602			5,411
Utility and rebate accrual adjustment																															—
Preopening during construction period																															—
Interest (income) expense				(343	)		(420	)		(381	)		(431	)		(1,575	)		(489	)		(535	)		(485	)		(480	)		(1,989	)
Tax provision				(1,528	)		(1,504	)		(1,237	)		(1,303	)		(5,572	)		(1,677	)		(1,355	)		(1,852	)		(1,996	)		(6,879	)

Net income				(3,173	)		(3,124	)		(3,029	)		(3,105	)		(12,431	)		(3,733	)		(4,407	)		(4,821	)		(5,196	)		(18,156	)
per FDS			$	(0.12	)	$	(0.12	)	$	(0.11	)	$	(0.11	)	$	(0.46	)	$	(0.14	)	$	(0.16	)	$	(0.18	)	$	(0.19	)	$	(0.67	)

Fully diluted shares (FDS)				26,893			26,977			27,073			27,058			27,000			27,239			27,258			27,275			27,300			27,268

Page 6 of 11

Concept: P.F. Chang’s China Bistro
Supplemental Financial Information — Pro Forma Forecast


				53 weeks																								Forecast									YOY
	2003			2004			1Q05			2Q05			3Q05			4Q05			2005			1Q06A			2Q06A			3Q06			4Q06			2006			Change

Units		97			115			116			121			125			131			131			133			137			142			152			152
Sales weeks		4,494			5,613			1,492			1,531			1,594			1,649			6,266			1,720			1,751			1,798			1,935			7,204			15.0	%
AWS		108,280			108,938			109,637			108,699			105,779			107,092			107,757			108,677			104,914			103,264			105,093			105,449			-2.1	%
Comp sales change		5.1	%		3.0	%		2.9	%		1.9	%		-0.8	%		1.0	%		1.2	%		1.3	%		-1.0	%		-0.1	%		0.0	%		0.0	%
Sales		486,609			611,468			163,579			166,418			168,612			176,595			675,204			186,924			183,705			185,668			203,355			759,652			12.5	%
per FDS	$	18.54		$	23.01		$	6.08		$	6.17		$	6.23		$	6.53		$	25.01		$	6.86		$	6.74		$	6.81		$	7.45		$	27.86

Operating costs
COS		136,983			173,128			45,317			45,726			46,359			49,671			187,073			51,771			50,235			50,873			55,719			208,598
Labor		158,497			201,352			53,601			54,250			55,947			57,328			221,126			62,308			60,381			61,270			67,107			251,066
Operating		66,044			85,073			23,599			24,298			25,654			26,648			100,199			27,897			27,067			27,559			29,992			112,515
Occupancy		25,533			31,896			8,465			8,883			9,102			8,250			34,700			9,859			9,928			10,117			11,013			40,917
Minority interest		7,360			9,177			1,935			1,881			1,723			1,579			7,118			1,733			1,753			1,729			1,894			7,109
G&A		24,767			28,555			4,086			3,816			3,667			3,943			15,512			4,386			4,498			4,767			4,670			18,321

Restaurant cash operating income		67,425			82,287			26,576			27,564			26,160			29,176			109,476			28,970			29,843			29,353			32,961			121,127			10.6	%
Development costs
Preopening		7,026			5,852			965			1,544			1,651			1,868			6,028			908			1,295			2,507			2,537			7,247			20.2	%
Partner investment expense		3,941			15,075			208			1,126			1,303			889			3,526			426			570			1,090			2,180			4,266			21.0	%
Other expenses
Depreciation & amortization		19,414			24,778			6,679			7,033			7,462			8,919			30,093			8,096			8,220			8,396			8,808			33,520			11.4	%
Equity-based compensation																							1,075			1,193			1,451			1,451			5,171
Utility and rebate accrual adjustment																										1,161									1,161
Preopening during construction period																							158			280			341			205			984
Interest (income) expense		(461	)		(612	)		(115	)		(20	)		(146	)		30			(251	)		—			—									—
Tax provision		12,522			10,796			6,123			5,811			4,608			5,148			21,690			5,432			4,024			4,320			4,934			18,710			-13.7	%

Net income		24,983			26,398			12,716			12,070			11,282			12,322			48,390			12,875			13,100			11,248			12,845			50,068			3.5	%
per FDS	$	0.95		$	0.99		$	0.47		$	0.45		$	0.42		$	0.46		$	1.79		$	0.47		$	0.48		$	0.41		$	0.47		$	1.84

Fully diluted shares (FDS)		26,250			26,575			26,893			26,977			27,073			27,058			27,000			27,239			27,258			27,275			27,300			27,268

Sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
COS		28.2	%		28.3	%		27.7	%		27.5	%		27.5	%		28.1	%		27.7	%		27.7	%		27.3	%		27.4	%		27.4	%		27.5	%
Labor		32.6	%		32.9	%		32.8	%		32.6	%		33.2	%		32.5	%		32.7	%		33.3	%		32.9	%		33.0	%		33.0	%		33.1	%
Operating		13.6	%		13.9	%		14.4	%		14.6	%		15.2	%		15.1	%		14.8	%		14.9	%		14.7	%		14.8	%		14.7	%		14.8	%
Occupancy		5.2	%		5.2	%		5.2	%		5.3	%		5.4	%		4.7	%		5.1	%		5.3	%		5.4	%		5.4	%		5.4	%		5.4	%
Minority interest		1.5	%		1.5	%		1.2	%		1.1	%		1.0	%		0.9	%		1.1	%		0.9	%		1.0	%		0.9	%		0.9	%		0.9	%
G&A		5.1	%		4.7	%		2.5	%		2.3	%		2.2	%		2.2	%		2.3	%		2.3	%		2.4	%		2.6	%		2.3	%		2.4	%

Restaurant cash operating income		13.9	%		13.5	%		16.2	%		16.6	%		15.5	%		16.5	%		16.2	%		15.5	%		16.2	%		15.8	%		16.2	%		15.9	%

Preopening		1.4	%		1.0	%		0.6	%		0.9	%		1.0	%		1.1	%		0.9	%		0.5	%		0.7	%		1.4	%		1.2	%		1.0	%
Partner investment expense		0.8	%		2.5	%		0.1	%		0.7	%		0.8	%		0.5	%		0.5	%		0.2	%		0.3	%		0.6	%		1.1	%		0.6	%
Depreciation & amortization		4.0	%		4.1	%		4.1	%		4.2	%		4.4	%		5.1	%		4.5	%		4.3	%		4.5	%		4.5	%		4.3	%		4.4	%
Equity-based compensation		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.6	%		0.6	%		0.8	%		0.7	%		0.7	%
Utility and rebate accrual adjustment		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.6	%		0.0	%		0.0	%		0.2	%
Preopening during construction period		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%		0.2	%		0.2	%		0.1	%		0.1	%
Interest (income) expense		-0.1	%		-0.1	%		-0.1	%		0.0	%		-0.1	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Tax provision		2.6	%		1.8	%		3.7	%		3.5	%		2.7	%		2.9	%		3.2	%		2.9	%		2.2	%		2.3	%		2.4	%		2.5	%

Net income		5.1	%		4.3	%		7.8	%		7.3	%		6.7	%		7.0	%		7.2	%		6.9	%		7.1	%		6.1	%		6.3	%		6.6	%

Page 7 of 11

Concept: Pei Wei Asian Diner
Supplemental Financial Information — Pro Forma Forecast


				53 weeks																								Forecast									YOY
	2003			2004			1Q05			2Q05			3Q05			4Q05			2005			1Q06A			2Q06A			3Q06			4Q06			2006			Change

Units		33			53			54			61			68			77			77			81			88			97			107			107
Sales weeks		1,255			2,318			698			742			844			947			3,231			1,031			1,089			1,208			1,326			4,654			44.0	%
AWS		42,476			41,188			43,888			42,639			40,802			39,323			41,457			40,435			38,822			38,086			38,090			38,780			-6.5	%
Comp sales change		0.3	%		2.0	%		6.0	%		6.3	%		2.8	%		1.9	%		4.0	%		-2.0	%		-3.9	%		-2.4	%		-1.1	%		-2.3	%
Sales		53,308			95,473			30,635			31,638			34,437			37,239			133,949			41,689			42,276			46,007			50,508			180,480			34.7	%
per FDS	$	2.03		$	3.59		$	1.14		$	1.17		$	1.27		$	1.38		$	4.96		$	1.53		$	1.55		$	1.69		$	1.85		$	6.62

Operating costs
COS		15,805			27,608			8,665			8,767			9,651			10,478			37,561			11,669			11,627			12,826			14,115			50,237
Labor		17,931			31,973			9,927			10,515			11,889			12,786			45,117			14,285			14,627			16,175			17,749			62,836
Operating		7,616			14,455			4,651			5,207			5,836			6,354			22,048			6,944			7,204			7,783			8,398			30,329
Occupancy		3,381			5,797			1,809			1,884			2,080			2,320			8,093			2,634			2,797			3,142			3,447			12,020
Minority interest		527			901			341			295			251			222			1,109			289			280			312			379			1,261
G&A		3,925			6,107			1,601			1,773			1,708			1,825			6,907			2,194			2,363			2,355			2,355			9,267

Restaurant cash operating income		4,123			8,632			3,641			3,197			3,022			3,254			13,114			3,674			3,378			3,415			4,065			14,531			10.8	%

Development costs
Preopening		1,764			2,143			369			952			1,061			835			3,217			474			923			956			1,062			3,415			6.2	%
Partner investment expense		255			2,596			65			455			169			585			1,274			(226	)		355			531			590			1,250			-1.9	%

Other expenses
Depreciation & amortization		2,403			4,377			1,306			1,344			1,533			1,794			5,977			1,979			2,064			2,274			2,510			8,827			47.7	%
Equity-based compensation																							105			122			145			145			518
Utility and rebate accrual adjustment																										201									201
Preopening during construction period																							129			203			173			179			684
Interest (income) expense		(5	)					—			(7	)		(3	)		(5	)		(15	)		(3	)		(33	)								(36	)
Tax provision		(98	)		(141	)		618			147			76			(17	)		824			377			(107	)		(185	)		(117	)		(32	)		-103.9	%

Net income		(196	)		(343	)		1,283			306			186			62			1,837			839			(350	)		(480	)		(305	)		(296	)		-116.1	%
per FDS	$	(0.01	)	$	(0.01	)	$	0.05		$	0.01		$	0.01		$	0.00		$	0.07		$	0.03		$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.01	)

Fully diluted shares (FDS)		26,250			26,575			26,893			26,977			27,073			27,058			27,000			27,239			27,258			27,275			27,300			27,268

Sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
COS		29.6	%		28.9	%		28.3	%		27.7	%		28.0	%		28.1	%		28.0	%		28.0	%		27.5	%		27.9	%		27.9	%		27.8	%
Labor		33.6	%		33.5	%		32.4	%		33.2	%		34.5	%		34.3	%		33.7	%		34.3	%		34.6	%		35.2	%		35.1	%		34.8	%
Operating		14.3	%		15.1	%		15.2	%		16.5	%		16.9	%		17.1	%		16.5	%		16.7	%		17.0	%		16.9	%		16.6	%		16.8	%
Occupancy		6.3	%		6.1	%		5.9	%		6.0	%		6.0	%		6.2	%		6.0	%		6.3	%		6.6	%		6.8	%		6.8	%		6.7	%
Minority interest		1.0	%		0.9	%		1.1	%		0.9	%		0.7	%		0.6	%		0.8	%		0.7	%		0.7	%		0.7	%		0.8	%		0.7	%
G&A		7.4	%		6.4	%		5.2	%		5.6	%		5.0	%		4.9	%		5.2	%		5.3	%		5.6	%		5.1	%		4.7	%		5.1	%

Restaurant cash operating income		7.7	%		9.0	%		11.9	%		10.1	%		8.8	%		8.7	%		9.8	%		8.8	%		8.0	%		7.4	%		8.0	%		8.1	%

Preopening		3.3	%		2.2	%		1.2	%		3.0	%		3.1	%		2.2	%		2.4	%		1.1	%		2.2	%		2.1	%		2.1	%		1.9	%
Partner investment expense		0.5	%		2.7	%		0.2	%		1.4	%		0.5	%		1.6	%		1.0	%		-0.5	%		0.8	%		1.2	%		1.2	%		0.7	%
Depreciation & amortization		4.5	%		4.6	%		4.3	%		4.2	%		4.5	%		4.8	%		4.5	%		4.7	%		4.9	%		4.9	%		5.0	%		4.9	%
Equity-based compensation		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%
Utility and rebate accrual adjustment		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.5	%		0.0	%		0.0	%		0.1	%
Preopening during construction period		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.3	%		0.5	%		0.4	%		0.4	%		0.4	%
Interest (income) expense		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		-0.1	%		0.0	%		0.0	%		0.0	%
Tax provision		-0.2	%		-0.1	%		2.0	%		0.5	%		0.2	%		0.0	%		0.6	%		0.9	%		-0.3	%		-0.4	%		-0.2	%		0.0	%

Net income		-0.4	%		-0.4	%		4.2	%		1.0	%		0.5	%		0.2	%		1.4	%		2.0	%		-0.8	%		-1.0	%		-0.6	%		-0.2	%

Page 8 of 11

Concept: Taneko Japanese Tavern
Supplemental Financial Information — Pro Forma Forecast


								Forecast
		1Q06A			2Q06A			3Q06			4Q06			2006
Units												1			1
Sales weeks												13			13
AWS												75			75
Comp sales change
Sales												975			975
per FDS		$	—		$	—		$	—		$	0.04		$	0.04

Operating costs
COS												336			336
Labor												385			385
Operating												199			199
Occupancy												65			65
Minority interest
G&A	G&A expenses incurred in 2005 are shown under Shared Services		195			190			257			202			845

Restaurant cash operating income			(195	)		(190	)		(257	)		(212	)		(855	)

Development costs
Preopening			23			86			150			165			424
Partner investment expense												170			170

Other expenses
Depreciation & amortization												52			52
Equity-based compensation			22			27			23			23			95
Utility and rebate accrual adjustment															—
Preopening during construction period			2			30			25			—			57
Interest (income) expense															—
Tax provision			(74	)		(78	)		(126	)		(173	)		(451	)

Net income			(168	)		(255	)		(329	)		(450	)		(1,202	)
per FDS		$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.04	)

Fully diluted shares (FDS)			27,239			27,258			27,275			27,300			27,268


Sales												100.0	%		100.0	%
COS												34.5	%		34.5	%
Labor												39.5	%		39.5	%
Operating												20.4	%		20.4	%
Occupancy												6.7	%		6.7	%
Minority interest												0.0	%		0.0	%
G&A												20.8	%		86.6	%

Restaurant cash operating income												-21.8	%		-87.7	%

Preopening												16.9	%		43.5	%
Partner investment expense												17.4	%		17.4	%
Depreciation & amortization												5.4	%		5.4	%
Equity-based compensation												2.4	%		9.8	%
Utility and rebate accrual adjustment												0.0	%		0.0	%
Preopening during construction period												0.0	%		5.8	%
Interest (income) expense												0.0	%		0.0	%
Tax provision												-17.7	%		-46.3	%

Net income												-46.2	%		-123.3	%

Page 9 of 11

P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information — Reconciliation of Pro Forma Forecast to GAAP Forecast


							Pro Forma Forecast									Adjustments																					GAAP Forecast
	1Q06A			2Q06A			3Q06			4Q06			2006			1Q06A			2Q06A			3Q06			4Q06			2006			1Q06A			2Q06A			3Q06			4Q06			2006

Sales		228,613			225,981			231,675			254,838			941,107																		228,613			225,981			231,675			254,838			941,107
per FDS	$	8.39		$	8.29		$	8.49		$	9.33		$	34.51																	$	8.39		$	8.29		$	8.49		$	9.33		$	34.51

Operating costs
COS		63,440			61,862			63,699			70,170			259,171						(577	)								(577	)		63,440			61,285			63,699			70,170			258,594
Labor		76,593			75,008			77,445			85,241			314,287			344			372			350			350			1,416			76,937			75,380			77,795			85,591			315,703
Operating		34,841			34,271			35,342			38,589			143,043						1,939									1,939			34,841			36,210			35,342			38,589			144,982
Occupancy		12,493			12,725			13,259			14,525			53,002																		12,493			12,725			13,259			14,525			53,002
Minority interest		2,022			2,033			2,041			2,273			8,370																		2,022			2,033			2,041			2,273			8,370
G&A		11,406			11,848			12,644			13,007			48,905			1,846			2,189			2,872			2,872			9,779			13,252			14,037			15,516			15,879			58,684

Restaurant cash operating income		27,818			28,234			27,246			31,033			114,331			(2,190	)		(3,923	)		(3,222	)		(3,222	)		(12,557	)		25,628			24,311			24,024			27,811			101,774

Development costs
Preopening		1,405			2,304			3,613			3,764			11,086			289			513			539			384			1,725			1,694			2,817			4,152			4,148			12,811
Partner investment expense		200			925			1,621			2,940			5,686																		200			925			1,621			2,940			5,686

Other expenses
Depreciation & amortization		10,355			10,565			10,960			11,660			43,541																		10,355			10,565			10,960			11,660			43,541
Equity-based compensation		2,190			2,561			3,222			3,222			11,195			(2,190	)		(2,561	)		(3,222	)		(3,222	)		(11,195	)		—			—			—			—			—
Utility and rebate accrual adjustment		—			1,362			—			—			1,362						(1,362	)								(1,362	)		—			—			—			—			—
Preopening during construction period		289			513			539			384			1,725			(289	)		(513	)		(539	)		(384	)		(1,725	)		—			—			—			—			—
Interest (income) expense		(492	)		(568	)		(485	)		(480	)		(2,025	)																	(492	)		(568	)		(485	)		(480	)		(2,025	)
Tax provision		4,058			2,483			2,158			2,648			11,347																		4,058			2,483			2,158			2,648			11,347


Net income		9,813			8,089			5,618			6,895			30,414			—			—			—			—			—			9,813			8,089			5,618			6,895			30,414

per FDS	$	0.36		$	0.30		$	0.21		$	0.25		$	1.12																	$	0.36		$	0.30		$	0.21		$	0.25		$	1.12

Fully diluted shares (FDS)		27,239			27,258			27,275			27,300			27,268																		27,239			27,258			27,275			27,300			27,268

Sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%																	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
COS		27.7	%		27.4	%		27.5	%		27.5	%		27.5	%																	27.7	%		27.1	%		27.5	%		27.5	%		27.5	%
Labor		33.5	%		33.2	%		33.4	%		33.4	%		33.4	%																	33.7	%		33.4	%		33.6	%		33.6	%		33.5	%
Operating		15.2	%		15.2	%		15.3	%		15.1	%		15.2	%																	15.2	%		16.0	%		15.3	%		15.1	%		15.4	%
Occupancy		5.5	%		5.6	%		5.7	%		5.7	%		5.6	%																	5.5	%		5.6	%		5.7	%		5.7	%		5.6	%
Minority interest		0.9	%		0.9	%		0.9	%		0.9	%		0.9	%																	0.9	%		0.9	%		0.9	%		0.9	%		0.9	%
G&A		5.0	%		5.2	%		5.5	%		5.1	%		5.2	%																	5.8	%		6.2	%		6.7	%		6.2	%		6.2	%

Restaurant cash operating income		12.2	%		12.5	%		11.8	%		12.2	%		12.1	%																	11.2	%		10.8	%		10.4	%		10.9	%		10.8	%

Preopening		0.6	%		1.0	%		1.6	%		1.5	%		1.2	%																	0.7	%		1.2	%		1.8	%		1.6	%		1.4	%
Partner investment expense		0.1	%		0.4	%		0.7	%		1.2	%		0.6	%																	0.1	%		0.4	%		0.7	%		1.2	%		0.6	%
Depreciation & amortization		4.5	%		4.7	%		4.7	%		4.6	%		4.6	%																	4.5	%		4.7	%		4.7	%		4.6	%		4.6	%
Equity-based compensation		1.0	%		1.1	%		1.4	%		1.3	%		1.2	%																	0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Utility and rebate accrual adjustment		0.0	%		0.6	%		0.0	%		0.0	%		0.1	%																	0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Preopening during construction period		0.1	%		0.2	%		0.2	%		0.2	%		0.2	%																	0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Interest (income) expense		-0.2	%		-0.3	%		-0.2	%		-0.2	%		-0.2	%																	-0.2	%		-0.3	%		-0.2	%		-0.2	%		-0.2	%
Tax provision		1.8	%		1.1	%		0.9	%		1.0	%		1.2	%																	1.8	%		1.1	%		0.9	%		1.0	%		1.2	%

Net income		4.3	%		3.6	%		2.4	%		2.7	%		3.2	%																	4.3	%		3.6	%		2.4	%		2.7	%		3.2	%

Page 10 of 11

P.F. Chang’s, Inc.
Reconciliation of Non-GAAP to GAAP Measures
(in thousands, except per share data)
(Unaudited)


	GAAP Presentation												Reconciling Items									Non-GAAP Presentation
	Quarter Ended						Quarter Ended						Utility and Rebate			Preopening during			Equity-based			Quarter Ended
	Jul 3,			% of			Jul 2,			% of			Accrual Adjustment			Construction Period			Compensation			Jul 2,			% of
	2005			Sales			2006			Sales			(a)			(b)			(c)			2006			Sales

Revenues		198,056						225,981															225,981
Costs and expenses:
Cost of sales		54,493			27.5	%		61,285			27.1	%		577									61,862			27.4	%
Labor		64,765			32.7	%		75,380			33.4	%								(372	)		75,008			33.2	%
Operating		29,505			14.9	%		36,210			16.0	%		(1,939	)								34,271			15.2	%
Occupancy		10,767			5.4	%		12,725			5.6	%											12,725			5.6	%
General and administrative		10,495			5.3	%		14,037			6.2	%								(2,189	)		11,848			5.2	%
Depreciation and amortization		8,519			4.3	%		10,565			4.7	%											10,565			4.7	%
Preopening expense		2,496			1.3	%		2,817			1.2	%					(513	)					2,304			1.0	%
Partner investment expense		1,581			0.8	%		925			0.4	%											925			0.4	%

Total costs and expenses		182,621			92.2	%		213,944			94.7	%		(1,362	)		(513	)		(2,561	)		209,508			92.7	%

Income from operations		15,435			7.8	%		12,037			5.3	%											16,473			7.3	%
Interest and other income, net		447			0.2	%		568			0.3	%											568			0.3	%

Income before min. interest & taxes		15,882			8.0	%		12,605			5.6	%		1,362			513			2,561			17,041			7.5	%
Minority interest		(2,176	)		-1.1	%		(2,033	)		-0.9	%											(2,033	)		-0.9	%

Income before provision for income taxes		13,706			6.9	%		10,572			4.7	%											15,008			6.6	%
Provision for income taxes		(4,454	)		-32.5	%		(2,483	)		-23.5	%		(378	)		(142	)		(711	)		(3,714	)		-24.7	%

Net income		9,252			4.7	%		8,089			3.6	%		984			371			1,850			11,294			5.0	%

Net income per share:
Basic	$	0.35					$	0.30														$	0.43

Diluted	$	0.34					$	0.30														$	0.41

Weighted average shares used in computation:
Basic		26,221						26,546															26,546
Diluted		26,977						27,258															27,258


(a)		The Company modified its accounting policies related to utility and rebate accruals, recording an additional $2.2 million in utility costs and a credit of approximately $900,000 in additional rebates due from cost of sales and operating expense vendors.

(b)		The Company incurred approximately $500,000 in additional preopening expenses that previously would have been capitalized before FASB’s Staff Position No. 13.1 went into effect earlier this year.

(c)		The Company recorded $2.6 million in equity-based compensation expense this quarter under the new SFAS 123R rules implemented at the beginning of the year.

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