EX-99.1 2 c74077exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
P.F. CHANG’S CHINA BISTRO, INC.
P.F. CHANG’S EARNS $0.39 PER SHARE
SCOTTSDALE, ARIZONA, (July 23, 2008) — P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported consolidated net income of $9.4 million for the second quarter ended June 29, 2008 compared to $9.3 million for the second quarter of the prior year. Net income per diluted share for the second quarter of fiscal 2008 was $0.39 and the prior year was $0.36.
                 
(000 except per share data)   2Q08     2Q07  
Revenues
   $ 304,079     $ 266,823  
 
                
Income from continuing operations
   $ 9,631     $ 9,630  
Net income
   $ 9,398     $ 9,277  
 
                
Income from continuing operations per diluted share
   $ 0.40     $ 0.37  
Net income per diluted share
   $ 0.39     $ 0.36  
 
                
Weighted average shares — diluted
     24,247       26,129  
For the second quarter of 2008, consolidated revenues were $304.1 million compared to $266.8 million for the second quarter of 2007. Sales at company-owned P.F. Chang’s China Bistro restaurants accounted for $231.8 million of consolidated revenues and sales at the Company’s Pei Wei Asian Diner restaurants accounted for $72.1 million of consolidated revenues.
For the 13 weeks ended June 29, 2008, comparable store sales decreased 2.3% at the Bistro as a reduction in overall guest traffic more than offset the benefit of a 4% to 5% average check increase reflecting the net impact of price increases and menu mix changes. Comparable store sales at the Bistro decreased 2.5%, 1.4%, and 2.9% in April, May and June, respectively.
For the 13 weeks ended June 29, 2008, comparable store sales decreased 3.2% at Pei Wei as a reduction in overall guest traffic more than offset the benefit of a slightly higher average check reflecting the net impact of price increases and menu mix changes. Comparable store sales at Pei Wei decreased 2.2%, 4.2%, and 3.5% for April, May and June, respectively.
Net income for both years includes a loss from discontinued operations related to the Company’s previously announced decision to exit operation of its Taneko business. The Company has reached an agreement to sell Taneko’s long-lived assets and the transaction is expected to close on August 1, 2008.
During the second quarter of 2008, the Company opened five new Bistro restaurants and four new Pei Wei restaurants.
2008 Expectations
“Revenues at both concepts for the second quarter were slightly below our expectations and we continue to believe that consumers will remain under economic pressure for the rest of the year”, noted Rick Federico, CEO. “Despite our lower than anticipated revenue performance, we are pleased with our second quarter earnings which reflect better than anticipated operating results, as we continued to focus on improving operating margins and general & administrative costs, both of which were more favorable than expected during the quarter. We continue to remain optimistic about our business and given our better than expected results for the past two quarters, we are modestly increasing our earnings expectations for the year from a range of $1.34 — $1.40 per share to a range of $1.36- $1.42 per share.”
The Company plans to open a total of 17 new Bistro restaurants and 25 new Pei Wei restaurants during 2008 and expects full year fiscal 2008 consolidated revenues to increase 12 to 13 percent.

 

Page 1 of 10

 

2009 Development
The Company has reduced its planned 2009 development and currently expects to open 12 to 14 new Bistro restaurants and 6 to 10 new Pei Wei restaurants during fiscal 2009 primarily reflecting the current macroeconomic environment.
Share Repurchase Program
During the second quarter of fiscal 2008, the Company repurchased a total of 0.4 million shares of common stock for $10.0 million at an average price of $25.38 using cash on hand. The Company’s current remaining share repurchase authorization was $40.0 million at June 29, 2008.
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. 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 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.

 

Page 2 of 10

 

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.
             
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

 

Page 3 of 10

 

P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                 
    13 Weeks Ended  
    June 29,     July 1,  
    2008     2007  
Revenues
   $ 304,079     $ 266,823  
Costs and expenses:
                
Cost of sales
     82,869       72,766  
Labor
     101,109       90,307  
Operating
     49,907       42,198  
Occupancy
     17,836       15,561  
General & administrative
     19,128       15,684  
Depreciation & amortization
     17,431       13,500  
Preopening expense
     1,809       3,296  
Partner investment expense
     (500 )     (468 )
 
            
Total costs and expenses
     289,589       252,844  
 
            
Income from operations
     14,490       13,979  
Interest and other income (expense), net
     (949 )     179  
Minority interest
     (487 )     (1,121 )
 
            
Income from continuing operations before provision for income taxes
     13,054       13,037  
Provision for income taxes
     (3,423 )     (3,407 )
 
            
Income from continuing operations
     9,631       9,630  
Loss from discontinued operations, net of tax
     (233 )     (353 )
 
            
Net income
   $ 9,398     $ 9,277  
 
            
 
                
Basic income per share:
                
Income from continuing operations
   $ 0.40     $ 0.37  
Loss from discontinued operations, net of tax
     (0.01 )     (0.01 )
 
            
Net income
   $ 0.39     $ 0.36  
 
            
 
                
Diluted income per share:
                
Income from continuing operations
   $ 0.40     $ 0.37  
Loss from discontinued operations, net of tax
     (0.01 )     (0.01 )
 
            
Net income
   $ 0.39     $ 0.36  
 
            
 
                
Weighted average shares used in computation — basic
     23,898       25,708  
 
            
Weighted average shares used in computation — diluted
     24,247       26,129  
 
            

 

Page 4 of 10

 

P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                 
    26 Weeks Ended  
    June 29,     July 1,  
    2008     2007  
Revenues
   $ 612,659     $ 530,507  
Costs and expenses:
                
Cost of sales
     167,173       145,398  
Labor
     205,667       179,170  
Operating
     98,569       83,264  
Occupancy
     35,755       30,414  
General & administrative
     37,649       32,178  
Depreciation & amortization
     34,083       26,078  
Preopening expense
     4,633       5,835  
Partner investment expense
     (89 )     (1,869 )
 
            
Total costs and expenses
     583,440       500,468  
 
            
Income from operations
     29,219       30,039  
Interest and other income (expense), net
     (1,883 )     522  
Minority interest
     (1,192 )     (2,768 )
 
            
Income from continuing operations before provision for income taxes
     26,144       27,793  
Provision for income taxes
     (6,849 )     (7,405 )
 
            
Income from continuing operations
     19,295       20,388  
Loss from discontinued operations, net of tax
     (276 )     (646 )
 
            
Net income
   $ 19,019     $ 19,742  
 
            
 
                
Basic income per share:
                
Income from continuing operations
   $ 0.81     $ 0.80  
Loss from discontinued operations, net of tax
     (0.02 )     (0.03 )
 
            
Net income
   $ 0.79     $ 0.77  
 
            
 
                
Diluted income per share:
                
Income from continuing operations
   $ 0.79     $ 0.78  
Loss from discontinued operations, net of tax
     (0.01 )     (0.02 )
 
            
Net income
   $ 0.78     $ 0.76  
 
            
 
                
Weighted average shares used in computation — basic
     23,935       25,598  
 
            
Weighted average shares used in computation — diluted
     24,271       26,088  
 
            

 

Page 5 of 10

 

P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
                                                                         
    2006     1Q07     2Q07     3Q07     4Q07     2007     1Q08     2Q08     YTD Q2 2008  
 
                                                                        
Units
     259       269       283       299       316       316       332       341       341  
Sales weeks
     11,848       3,425       3,588       3,776       4,060       14,849       4,252       4,386       8,638  
AWS
     79,074       76,988       74,365       71,579       71,905       73,589       72,573       69,329       70,926  
 
                                                                        
Revenues
     936,864       263,684       266,823       270,282       291,933       1,092,722       308,580       304,079       612,659  
 
                                                                        
Operating costs
                                                                        
Cost of sales
     256,259       72,632       72,766       73,865       80,450       299,713       84,304       82,869       167,173  
Labor
     309,774       88,863       90,307       91,789       97,100       368,059       104,558       101,109       205,667  
Operating
     146,247       41,066       42,198       43,816       46,913       173,993       48,662       49,907       98,569  
Occupancy
     52,408       14,853       15,561       15,970       16,727       63,111       17,919       17,836       35,755  
Minority interest
     8,116       1,647       1,121       808       593       4,169       705       487       1,192  
Depreciation & amortization
     44,793       12,578       13,500       14,749       16,005       56,832       16,652       17,431       34,083  
Restaurant operating income
     119,267       32,045       31,370       29,285       34,145       126,845       35,780       34,440       70,220  
 
                                                                        
Development costs
                                                                        
Preopening expenses
     12,286       2,539       3,296       4,939       4,209       14,983       2,824       1,809       4,633  
Partner investment expense
     4,371       (1,401 )     (468 )     (71 )     (72 )     (2,012 )     411       (500 )     (89 )
 
                                                                        
Other expenses
                                                                        
General and
administrative (1)
     56,030       16,494       15,684       17,186       17,604       66,968       18,521       19,128       37,649  
Interest and other (income) expense, net
     (1,315 )     (343 )     (179 )     10       612       100       934       949       1,883  
Provision for income taxes
     13,712       3,998       3,407       1,618       2,540       11,563       3,398       3,451       6,849  
Income from continuing operations
     34,183       10,758       9,630       5,603       9,252       35,243       9,692       9,603       19,295  
Loss from discontinued operations, net of tax
     (930 )     (293 )     (353 )     (328 )     (2,206 )     (3,180 )     (43 )     (233 )     (276 )
Net income
     33,253       10,465       9,277       5,275       7,046       32,063       9,649       9,370       19,019  
 
                                                                        
Income from continuing operations per FDS
   $ 1.28     $ 0.41     $ 0.37     $ 0.21     $ 0.37     $ 1.36     $ 0.40     $ 0.40     $ 0.79  
 
                                                                        
Fully diluted shares (FDS)
     26,737       26,046       26,129       26,105       25,257       25,899       24,295       24,247       24,271  
 
                                                                        
Revenues
     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
Cost of sales
     27.4 %     27.5 %     27.3 %     27.3 %     27.6 %     27.4 %     27.3 %     27.3 %     27.3 %
Labor
     33.1 %     33.7 %     33.8 %     34.0 %     33.3 %     33.7 %     33.9 %     33.3 %     33.6 %
Operating
     15.6 %     15.6 %     15.8 %     16.2 %     16.1 %     15.9 %     15.8 %     16.4 %     16.1 %
Occupancy
     5.6 %     5.6 %     5.8 %     5.9 %     5.7 %     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 %     0.2 %
Depreciation & amortization
     4.8 %     4.8 %     5.1 %     5.5 %     5.5 %     5.2 %     5.4 %     5.7 %     5.6 %
 
                                                      
Restaurant operating income
     12.7 %     12.2 %     11.8 %     10.8 %     11.7 %     11.6 %     11.6 %     11.3 %     11.5 %
 
                                                      
Preopening expenses
     1.3 %     1.0 %     1.2 %     1.8 %     1.4 %     1.4 %     0.9 %     0.6 %     0.8 %
Partner investment expense
     0.5 %     (0.5 %)     (0.2 %)     (0.0 %)     (0.0 %)     (0.2 %)     0.1 %     (0.2 %)     (0.0 %)
General and
administrative (1)
     6.0 %     6.3 %     5.9 %     6.4 %     6.0 %     6.1 %     6.0 %     6.3 %     6.1 %
Interest and other (income) expense, net
     (0.1 %)     (0.1 %)     (0.1 %)     0.0 %     0.2 %     0.0 %     0.3 %     0.3 %     0.3 %
Provision for income taxes
     1.5 %     1.5 %     1.3 %     0.6 %     0.9 %     1.1 %     1.1 %     1.1 %     1.1 %
 
                                                      
Income from continuing operations
     3.6 %     4.1 %     3.6 %     2.1 %     3.2 %     3.2 %     3.1 %     3.2 %     3.1 %
 
                                                      
Loss from discontinued operations, net of tax
     (0.1 %)     (0.1 %)     (0.1 %)     (0.1 %)     (0.8 %)     (0.3 %)     (0.0 %)     (0.1 %)     (0.0 %)
 
                                                      
Net income
     3.5 %     4.0 %     3.5 %     2.0 %     2.4 %     2.9 %     3.1 %     3.1 %     3.1 %
 
                                                      
 
                                                                        
Reconciliation of Non-GAAP Financial Information to GAAP measures:
                                                                        
Restaurant operating income
     119,267       32,045       31,370       29,285       34,145       126,845       35,780       34,440       70,220  
Add: Minority interest
     8,116       1,647       1,121       808       593       4,169       705       487       1,192  
Less: General and
administrative (1)
     (56,030 )     (16,494 )     (15,684 )     (17,186 )     (17,604 )     (66,968 )     (18,521 )     (19,128 )     (37,649 )
Less: Preopening expenses
     (12,286 )     (2,539 )     (3,296 )     (4,939 )     (4,209 )     (14,983 )     (2,824 )     (1,809 )     (4,633 )
Less: Partner investment expense
     (4,371 )     1,401       468       71       72       2,012       (411 )     500       89  
 
                                                      
Income from operations
     54,696       16,060       13,979       8,039       12,997       51,075       14,729       14,490       29,219  
 
                                                      
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

 

Page 6 of 10

 

Concept: P.F. Chang’s China Bistro
Supplemental Financial Information
                                                                         
    2006     1Q07     2Q07     3Q07     4Q07     2007     1Q08     2Q08     YTD Q2 2008  
 
                                                                        
Units
     152       153       157       162       172       172       177       182       182  
Sales weeks
     7,187       1,979       2,028       2,078       2,204       8,289       2,275       2,330       4,605  
AWS
     105,265       104,592       102,615       100,325       102,514       102,486       103,763       99,502       101,607  
Revenues
     756,634       207,028       208,174       208,544       225,997       849,743       236,089       231,972       468,061  
 
                                                                        
Operating costs
                                                                        
Cost of sales
     206,567       56,781       56,696       56,943       62,158       232,578       64,410       62,999       127,409  
Labor
     247,097       69,312       69,827       69,946       73,834       282,919       79,318       76,153       155,471  
Operating
     115,465       31,684       32,194       32,981       35,004       131,863       36,324       36,603       72,927  
Occupancy
     40,683       11,217       11,598       11,739       12,505       47,059       12,981       12,730       25,711  
Minority interest
     6,993       1,333       837       599       582       3,351       497       370       867  
Depreciation & amortization
     34,451       9,483       10,054       10,861       11,896       42,294       12,265       12,794       25,059  
Restaurant operating income
     105,378       27,218       26,968       25,475       30,018       109,679       30,294       30,323       60,617  
 
                                                                        
Revenues
     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 %     27.2 %
Labor
     32.7 %     33.5 %     33.5 %     33.5 %     32.7 %     33.3 %     33.6 %     32.8 %     33.2 %
Operating
     15.3 %     15.3 %     15.5 %     15.8 %     15.5 %     15.5 %     15.4 %     15.8 %     15.6 %
Occupancy
     5.4 %     5.4 %     5.6 %     5.6 %     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 %     0.2 %
Depreciation & amortization
     4.6 %     4.6 %     4.8 %     5.2 %     5.3 %     5.0 %     5.2 %     5.5 %     5.4 %
 
                                                      
Restaurant operating income
     13.9 %     13.1 %     13.0 %     12.2 %     13.3 %     12.9 %     12.8 %     13.1 %     13.0 %
 
                                                      
 
                                                                        
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       60,617  
Add: Minority interest
     6,993       1,333       837       599       582       3,351       497       370       867  
Less: Preopening expenses
     (8,004 )     (1,256 )     (1,790 )     (2,974 )     (2,992 )     (9,012 )     (1,729 )     (1,271 )     (3,000 )
Less: Partner investment expense
     (3,475 )     1,926       753       433       246       3,358       245       500       745  
 
                                                      
Income from operations
     100,892       29,221       26,768       23,533       27,854       107,376       29,307       29,922       59,229  
 
                                                      
Note: General and administrative expenses are reflected in the Company’s consolidated results

 

Page 7 of 10

 

Concept: Pei Wei Asian Diner
Supplemental Financial Information
                                                                         
    2006     1Q07     2Q07     3Q07     4Q07     2007     1Q08     2Q08     YTD Q2 2008  
 
                                                                        
Units
     107       116       126       137       144       144       155       159       159  
Sales weeks
     4,661       1,446       1,560       1,698       1,856       6,560       1,977       2,056       4,033  
AWS
     38,668       39,177       37,592       36,359       35,523       37,037       36,667       35,071       35,854  
Revenues
     180,230       56,656       58,649       61,738       65,936       242,979       72,491       72,107       144,598  
 
                                                                        
Operating costs
                                                                        
Cost of sales
     49,692       15,851       16,070       16,922       18,292       67,135       19,894       19,870       39,764  
Labor
     62,677       19,551       20,480       21,843       23,266       85,140       25,240       24,956       50,196  
Operating
     30,782       9,382       10,004       10,835       11,909       42,130       12,338       13,304       25,642  
Occupancy
     11,725       3,636       3,963       4,231       4,222       16,052       4,938       5,106       10,044  
Minority interest
     1,123       314       284       209       11       818       208       117       325  
Depreciation & amortization
     9,205       2,823       3,164       3,417       3,718       13,122       4,056       4,276       8,332  
Restaurant operating income
     15,026       5,099       4,684       4,281       4,518       18,582       5,817       4,478       10,295  
 
                                                                        
Revenues
     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 %     27.4 %     27.4 %     27.7 %     27.6 %     27.4 %     27.6 %     27.5 %
Labor
     34.8 %     34.5 %     34.9 %     35.4 %     35.3 %     35.0 %     34.8 %     34.6 %     34.7 %
Operating
     17.1 %     16.6 %     17.1 %     17.5 %     18.1 %     17.3 %     17.0 %     18.5 %     17.7 %
Occupancy
     6.5 %     6.4 %     6.8 %     6.9 %     6.4 %     6.6 %     6.8 %     7.1 %     6.9 %
Minority interest
     0.6 %     0.6 %     0.5 %     0.3 %     0.0 %     0.3 %     0.3 %     0.2 %     0.2 %
Depreciation & amortization
     5.1 %     5.0 %     5.4 %     5.5 %     5.6 %     5.4 %     5.6 %     5.9 %     5.8 %
 
                                                      
Restaurant operating income
     8.3 %     9.0 %     8.0 %     6.9 %     6.9 %     7.6 %     8.0 %     6.2 %     7.1 %
 
                                                      
 
                                                                        
Reconciliation of Non-GAAP Financial Information to GAAP measures:
                                                                        
Restaurant operating income
     15,026       5,099       4,684       4,281       4,518       18,582       5,817       4,478       10,295  
Add: Minority interest
     1,123       314       284       209       11       818       208       117       325  
Less: Preopening expenses
     (4,283 )     (1,283 )     (1,506 )     (1,965 )     (1,217 )     (5,971 )     (1,095 )     (538 )     (1,633 )
Less: Partner investment expense
     (896 )     (525 )     (285 )     (362 )     (174 )     (1,346 )     (656 )     —       (656 )
 
                                                      
Income from operations
     10,970       3,605       3,177       2,163       3,138       12,083       4,274       4,057       8,331  
 
                                                      
     
Note:  
General and administrative expenses are reflected in the Company’s consolidated results

 

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       10       182  
 
                                                                                
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  
 
                                                                                
2008
     151,654       37,127       35,669       49,545       40,192       41,450       46,861       52,098       13,304       467,900  
 
                                                                                
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  
 
                                                                                
2008
     114,370       109,842       97,990       105,867       85,879       88,569       90,118       100,187       100,028       101,607  
 
                                                                                
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 %
 
                                                                                
2008
     -1.7 %     0.5 %     0.3 %     0.1 %     -1.1 %     -1.0 %     -6.4 %     -13.1 %     —       -1.7 %
 
                                                                                
Year-Over-Year Change Comp Store Sales (3)
 
                                                                                
Units
     51       13       14       18       18       18       20       —       —       152  
 
                                                                                
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 %
 
                                                                                
2008
     -1.7 %     0.5 %     0.3 %     0.1 %     -1.1 %     -1.0 %     -3.8 %     —       —       -1.1 %
     
(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.

 

Page 9 of 10

 

Pei Wei Asian Diner

Supplemental Sales Information
Year of Unit Opening (1)
                                                                                 
    2000     2001     2002     2003     2004     2005     2006     2007     2008     Total  
 
Units
     1       4       11       17       20       24       30       37       15       159  
 
                                                                                
Sales (000)
 
                                                                                
1Q08
     730       2,086       5,725       8,942       10,617       11,441       13,494       15,167       4,289       72,491  
2Q08
     697       1,988       5,393       8,570       10,296       11,049       13,121       14,515       6,478       72,107  
 
                                                                                
2008
     1,427       4,074       11,118       17,512       20,913       22,490       26,615       29,682       10,767       144,598  
 
                                                                                
Average Weekly Sales (AWS)
 
                                                                                
1Q08
     56,165       40,115       40,034       40,460       40,833       36,669       34,599       31,531       40,863       36,667  
2Q08
     53,587       38,234       37,713       38,776       39,601       35,412       33,645       30,178       35,204       35,071  
 
                                                                                
2008
     54,876       39,175       38,874       39,618       40,217       36,040       34,122       30,855       37,260       35,854  
 
                                                                                
Year-Over-Year Change in AWS (2)
 
                                                                                
1Q08
     -6.7 %     -8.4 %     -7.6 %     -4.7 %     -0.7 %     -0.5 %     -2.1 %     -18.7 %     —       -3.5 %
2Q08
     -5.5 %     -5.1 %     -8.1 %     -7.0 %     -1.7 %     -0.9 %     -1.6 %     -14.8 %     —       -4.5 %
 
                                                                                
2008
     -6.1 %     -6.8 %     -7.9 %     -5.8 %     -1.2 %     -0.7 %     -1.9 %     -15.8 %     —       -4.0 %
 
                                                                                
Year-Over-Year Change Comp Store Sales (3)
 
                                                                                
Units
     1       4       11       17       20       24       30       3       —       110  
 
                                                                                
1Q08
     -6.7 %     -8.4 %     -7.6 %     -4.7 %     -0.7 %     -0.5 %     1.4 %     —       —       -2.4 %
2Q08
     -5.5 %     -5.1 %     -8.1 %     -7.0 %     -1.7 %     -0.9 %     -1.3 %     -0.9 %     —       -3.2 %
 
                                                                                
2008
     -6.1 %     -6.8 %     -7.9 %     -5.8 %     -1.2 %     -0.7 %     -0.2 %     -0.9 %     —       -2.8 %
     
(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.

 

Page 10 of 10