P.F. Chang's Reports Third Quarter Earnings

Wednesday, October 22, 2008 7:10 AM

P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported consolidated net income of $3.0 million for the third quarter ended September 28, 2008, compared to $5.3 million for the third quarter of the prior year. Net income per diluted share for the third quarter of fiscal 2008 was $0.12, and the prior year was $0.20. Current quarter results include the pre-tax impact of $7.5 million in non-cash asset impairment charges recognized in connection with the Company’s closure of 10 Pei Wei restaurants (discussed in further detail below). The asset impairment charges reduced current quarter diluted earnings per share by $0.19.

(000 except per share data)	3Q08		3Q07
Revenues	$	298,359	$	270,282

Income from continuing operations	$	2,786	$	5,603
Net income	$	2,962	$	5,275

Income from continuing operations per diluted share	$	0.12	$	0.21
Net income per diluted share	$	0.12	$	0.20

Weighted average shares - diluted		23,927		26,105

For the third quarter of 2008, consolidated revenues were $298.4 million compared to $270.3 million for the third quarter of 2007. Sales at company-owned P.F. Chang’s China Bistro restaurants accounted for $226.4 million of consolidated revenues, and sales at the Company’s Pei Wei Asian Diner restaurants accounted for $71.9 million of consolidated revenues.

For the 13 weeks ended September 28, 2008, comparable store sales decreased 3.1% at the Bistro as a significant 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 3.5%, 1.5%, and 4.4% in July, August and September, respectively. Additionally, the impact of Hurricane Ike resulted in $0.4 million of lost revenue during the third quarter of 2008 as a result of temporary store closures at five Bistro locations in the Houston area.

For the 13 weeks ended September 28, 2008, comparable store sales decreased 2.9% at Pei Wei as a significant 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 2.8%, 0.6%, and 5.2% in July, August and September, respectively. Additionally, the impact of Hurricane Ike resulted in $0.5 million of lost revenue during the third quarter of 2008 as a result of temporary store closures at 13 Pei Wei locations in the Houston area.

Net income for both years includes income (loss) from discontinued operations related to the Company’s previously announced planned exit from its Taneko business. On August 1, 2008, the Company completed the sale of Taneko’s long-lived assets.

During the third quarter of 2008, the Company opened six new Pei Wei restaurants. No Bistro restaurants opened during the third quarter of 2008.

Pei Wei Store Closures

As part of ongoing profitability initiatives, the Company will be closing 10 underperforming Pei Wei restaurants during the fourth quarter of 2008. This decision was a result of a rigorous evaluation of the Company’s entire store portfolio. The Company reviewed each location’s past, present and projected operating performance. The locations selected for closure represent restaurants with lower past and present profitability that are not projected to provide acceptable returns in the foreseeable future.

“We have made the tough decision to close 10 Pei Wei restaurants,” said Rick Federico, CEO. “We reached this conclusion as a result of a disciplined financial analysis which highlighted stores that were not performing to the financial standards that we and our investors have come to rely upon. We believe that the underperformance at these locations was primarily a result of poor site selection, and the closure of these stores will improve the overall health of Pei Wei and the Company. We continue to believe that Pei Wei is a strong concept, and we remain very optimistic about Pei Wei’s future.

“These decisions are extremely hard to make because of the personal and professional impact they have on all of our people,” Mr. Federico continued. “As a Company, we place high value on the remarkable dedication of our employees and truly appreciate their many contributions each and every day. At the same time, we recognize that it is necessary to take actions that will strengthen our Pei Wei concept and enable us to focus on enhancing operating efficiency and ensuring long-term value for our employees, guests and shareholders.”

During the third quarter of 2008, the Company recognized pre-tax, non-cash asset impairment charges of $7.5 million related to the 10 planned Pei Wei store closures. These asset impairment charges reduced current quarter diluted earnings per share by $0.19. The Company also anticipates additional charges will be recognized during the fourth quarter of 2008 related to lease termination costs and severance payments.

The Company expects Pei Wei restaurant operating income margins to improve by approximately 70-80 basis points in fiscal 2009 as a result of these store closures.

2008 Expectations

The Company has slightly reduced its full year 2008 forecasted earnings per share from continuing operations from a range of $1.36-$1.42 per share to a range of $1.34-$1.40 per share, reflecting expectations of continued economic pressure on consumers for the remainder of the year. This guidance excludes the impact of the asset impairment charges recognized during the third quarter as well as the impact of anticipated restructuring charges to be recognized during the fourth quarter, both of which the Company anticipates reflecting within discontinued operations effective fourth quarter upon restaurant closure.

The Company plans to open a total of 17 new Bistro restaurants and 25 new Pei Wei restaurants during 2008 and now expects full year fiscal 2008 consolidated revenues to increase 11 to 12 percent.

2009 Development

The Company has reduced its planned 2009 development and currently expects to open 8 to 10 new Bistro restaurants and 6 to 10 new Pei Wei restaurants during fiscal 2009, primarily reflecting the current macroeconomic environment.

The Company is hosting a conference call today at 1:00 p.m. ET in which management will provide further details on the third quarter results. A webcast of the call can be accessed through the company’s website 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 7 through 9 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.

P.F. Chang's China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	13 Weeks Ended
	September 28,		September 30,
	2008		2007
Revenues	$	298,359	$	270,282
Costs and expenses:
Cost of sales		81,075		73,865
Labor		99,140		91,789
Operating		52,767		43,816
Occupancy		17,594		15,970
General & administrative		18,152		17,186
Depreciation & amortization		17,510		14,749
Preopening expense		1,519		4,939
Partner investment expense		99		(71)
Asset impairment charge		7,510		-
Total costs and expenses		295,366		262,243
Income from operations		2,993		8,039
Interest and other income (expense), net		(895)		(10)
Minority interest		(367)		(808)
Income from continuing operations before provision for income taxes		1,731		7,221
Provision for income taxes		1,055		(1,618)
Income from continuing operations		2,786		5,603
Income (loss) from discontinued operations, net of tax		176		(328)
Net income	$	2,962	$	5,275

Basic income per share:
Income from continuing operations	$	0.12	$	0.22
Income (loss) from discontinued operations, net of tax		0.01		(0.02)
Net income	$	0.13	$	0.20

Diluted income per share:
Income from continuing operations	$	0.12	$	0.21
Income (loss) from discontinued operations, net of tax		0.00		(0.01)
Net income	$	0.12	$	0.20

Weighted average shares used in computation - basic		23,613		25,773
Weighted average shares used in computation - diluted		23,927		26,105

P.F. Chang's China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	39 Weeks Ended
	September 28,		September 30,
	2008		2007
Revenues	$	911,018	$	800,789
Costs and expenses:
Cost of sales		248,248		219,263
Labor		304,807		270,959
Operating		151,336		127,080
Occupancy		53,349		46,384
General & administrative		55,801		49,364
Depreciation & amortization		51,593		40,827
Preopening expense		6,152		10,774
Partner investment expense		10		(1,940)
Asset impairment charge		7,510		-
Total costs and expenses		878,806		762,711
Income from operations		32,212		38,078
Interest and other income (expense), net		(2,778)		512
Minority interest		(1,559)		(3,576)
Income from continuing operations before provision for income taxes		27,875		35,014
Provision for income taxes		(5,794)		(9,023)
Income from continuing operations		22,081		25,991
Loss from discontinued operations, net of tax		(100)		(974)
Net income	$	21,981	$	25,017

Basic income per share:
Income from continuing operations	$	0.93	$	1.01
Loss from discontinued operations, net of tax		(0.01)		(0.03)
Net income	$	0.92	$	0.98

Diluted income per share:
Income from continuing operations	$	0.91	$	1.00
Loss from discontinued operations, net of tax		0.00		(0.04)
Net income	$	0.91	$	0.96

Weighted average shares used in computation - basic		23,828		25,656
Weighted average shares used in computation - diluted		24,156		26,093

P.F. Chang's China Bistro, Inc.
Supplemental Financial Information

			2006			1Q07			2Q07			3Q07			4Q07			2007			1Q08			2Q08			3Q08			YTD Q3 2008

Units				259			269			283			299			316			316			332			341			347			347
Sales weeks				11,848			3,425			3,588			3,776			4,060			14,849			4,252			4,386			4,458			13,096
AWS				79,074			76,988			74,365			71,579			71,905			73,589			72,573			69,329			66,927			69,565

Revenues				936,864			263,684			266,823			270,282			291,933			1,092,722			308,580			304,079			298,359			911,018

Operating costs
	Cost of sales			256,259			72,632			72,766			73,865			80,450			299,713			84,304			82,869			81,075			248,248
	Labor			309,774			88,863			90,307			91,789			97,100			368,059			104,558			101,109			99,140			304,807
	Operating			146,247			41,066			42,198			43,816			46,913			173,993			48,662			49,907			52,767			151,336
	Occupancy			52,408			14,853			15,561			15,970			16,727			63,111			17,919			17,836			17,594			53,349
	Minority interest			8,116			1,647			1,121			808			593			4,169			705			487			367			1,559
	Depreciation & amortization			44,793			12,578			13,500			14,749			16,005			56,832			16,652			17,431			17,510			51,593
Restaurant operating income				119,267			32,045			31,370			29,285			34,145			126,845			35,780			34,440			29,906			100,126

Development costs
	Preopening expenses			12,286			2,539			3,296			4,939			4,209			14,983			2,824			1,809			1,519			6,152
	Partner investment expense			4,371			(1,401	)		(468	)		(71	)		(72	)		(2,012	)		411			(500	)		99			10

Other expenses
	General and administrative ⁽¹⁾			56,030			16,494			15,684			17,186			17,604			66,968			18,521			19,128			18,152			55,801
	Interest and other (income) expense, net			(1,315	)		(343	)		(179	)		10			612			100			934			949			895			2,778
	Asset impairment charge			-			-			-			-			-			-			-			-			7,510			7,510
	Provision for income taxes			13,712			3,998			3,407			1,618			2,540			11,563			3,398			3,451			(1,055	)		5,794
Income from continuing operations				34,183			10,758			9,630			5,603			9,252			35,243			9,692			9,603			2,786			22,081
Income (loss) from discontinued operations, net of tax				(930	)		(293	)		(353	)		(328	)		(2,206	)		(3,180	)		(43	)		(233	)		176			(100	)
Net income				33,253			10,465			9,277			5,275			7,046			32,063			9,649			9,370			2,962			21,981

		Income from continuing operations per FDS	$	1.28		$	0.41		$	0.37		$	0.21		$	0.37		$	1.36		$	0.40		$	0.40		$	0.12		$	0.91

Fully diluted shares (FDS)				26,737			26,046			26,129			26,105			25,257			25,899			24,295			24,247			23,927			24,156

Revenues				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales				27.4	%		27.5	%		27.3	%		27.3	%		27.6	%		27.4	%		27.3	%		27.3	%		27.2	%		27.2	%
Labor				33.1	%		33.7	%		33.8	%		34.0	%		33.3	%		33.7	%		33.9	%		33.3	%		33.2	%		33.5	%
Operating				15.6	%		15.6	%		15.8	%		16.2	%		16.1	%		15.9	%		15.8	%		16.4	%		17.7	%		16.6	%
Occupancy				5.6	%		5.6	%		5.8	%		5.9	%		5.7	%		5.8	%		5.8	%		5.9	%		5.9	%		5.9	%
Minority interest				0.9	%		0.6	%		0.4	%		0.3	%		0.2	%		0.4	%		0.2	%		0.2	%		0.1	%		0.2	%
Depreciation & amortization				4.8	%		4.8	%		5.1	%		5.5	%		5.5	%		5.2	%		5.4	%		5.7	%		5.9	%		5.7	%
Restaurant operating income				12.7	%		12.2	%		11.8	%		10.8	%		11.7	%		11.6	%		11.6	%		11.3	%		10.0	%		11.0	%
Preopening expenses				1.3	%		1.0	%		1.2	%		1.8	%		1.4	%		1.4	%		0.9	%		0.6	%		0.5	%		0.7	%
Partner investment expense				0.5	%		(0.5	%)		(0.2	%)		(0.0	%)		(0.0	%)		(0.2	%)		0.1	%		(0.2	%)		0.0	%		0.0	%
General and administrative (1)				6.0	%		6.3	%		5.9	%		6.4	%		6.0	%		6.1	%		6.0	%		6.3	%		6.1	%		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	%		0.3	%
Asset impairment charge				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		2.5	%		0.8	%
Provision for income taxes				1.5	%		1.5	%		1.3	%		0.6	%		0.9	%		1.1	%		1.1	%		1.1	%		(0.4	%)		0.6	%
Income from continuing operations				3.6	%		4.1	%		3.6	%		2.1	%		3.2	%		3.2	%		3.1	%		3.2	%		0.9	%		2.4	%
Income (loss) from discontinued operations, net of tax				(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)		(0.8	%)		(0.3	%)		(0.0	%)		(0.1	%)		0.1	%		(0.0	%)
Net income				3.5	%		4.0	%		3.5	%		2.0	%		2.4	%		2.9	%		3.1	%		3.1	%		1.0	%		2.4	%

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			29,906			100,126
Add: Minority interest				8,116			1,647			1,121			808			593			4,169			705			487			367			1,559
Less: General and administrative (1)				(56,030	)		(16,494	)		(15,684	)		(17,186	)		(17,604	)		(66,968	)		(18,521	)		(19,128	)		(18,152	)		(55,801	)
Less: Preopening expenses				(12,286	)		(2,539	)		(3,296	)		(4,939	)		(4,209	)		(14,983	)		(2,824	)		(1,809	)		(1,519	)		(6,152	)
Less: Partner investment expense				(4,371	)		1,401			468			71			72			2,012			(411	)		500			(99	)		(10	)
Less: Asset Impairment Charge				-			-			-			-			-			-			-			-			(7,510	)		(7,510	)
Income from operations				54,696			16,060			13,979			8,039			12,997			51,075			14,729			14,490			2,993			32,212

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

Concept: P.F. Chang's China Bistro
Supplemental Financial Information

		2006		1Q07		2Q07		3Q07		4Q07		2007		1Q08		2Q08		3Q08		YTD Q3 2008

Units		152		153		157		162		172		172		177		182		182		182
Sales weeks		7,187		1,979		2,028		2,078		2,204		8,289		2,275		2,330		2,355		6,960
AWS		105,265		104,592		102,615		100,325		102,514		102,486		103,763		99,502		96,139		99,756
Revenues		756,634		207,028		208,174		208,544		225,997		849,743		236,089		231,972		226,443		694,504

Operating costs
	Cost of sales	206,567		56,781		56,696		56,943		62,158		232,578		64,410		62,999		61,430		188,839
	Labor	247,097		69,312		69,827		69,946		73,834		282,919		79,318		76,153		74,387		229,858
	Operating	115,465		31,684		32,194		32,981		35,004		131,863		36,324		36,603		38,556		111,483
	Occupancy	40,683		11,217		11,598		11,739		12,505		47,059		12,981		12,730		12,536		38,247
	Minority interest	6,993		1,333		837		599		582		3,351		497		370		271		1,138
	Depreciation & amortization	34,451		9,483		10,054		10,861		11,896		42,294		12,265		12,794		12,771		37,830
Restaurant operating income		105,378		27,218		26,968		25,475		30,018		109,679		30,294		30,323		26,492		87,109

Revenues		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales		27.3	%	27.4	%	27.2	%	27.3	%	27.5	%	27.4	%	27.3	%	27.2	%	27.1	%	27.2	%
Labor		32.7	%	33.5	%	33.5	%	33.5	%	32.7	%	33.3	%	33.6	%	32.8	%	32.9	%	33.1	%
Operating		15.3	%	15.3	%	15.5	%	15.8	%	15.5	%	15.5	%	15.4	%	15.8	%	17.0	%	16.1	%
Occupancy		5.4	%	5.4	%	5.6	%	5.6	%	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	%	0.2	%
Depreciation & amortization		4.6	%	4.6	%	4.8	%	5.2	%	5.3	%	5.0	%	5.2	%	5.5	%	5.6	%	5.4	%
Restaurant operating income		13.9	%	13.1	%	13.0	%	12.2	%	13.3	%	12.9	%	12.8	%	13.1	%	11.7	%	12.5	%





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		87,109
Add: Minority interest		6,993		1,333		837		599		582		3,351		497		370		271		1,138
Less: Preopening expenses		(8,004	)	(1,256	)	(1,790	)	(2,974	)	(2,992	)	(9,012	)	(1,729	)	(1,271	)	(732	)	(3,732	)
Less: Partner investment expense		(3,475	)	1,926		753		433		246		3,358		245		500		103		848
Less: Asset impairment charge		-		-		-		-		-		-		-		-		-		-
Income from operations		100,892		29,221		26,768		23,533		27,854		107,376		29,307		29,922		26,134		85,363

Note: General and administrative expenses are reflected in the Company’s consolidated results

Concept: Pei Wei Asian Diner
Supplemental Financial Information

		2006		1Q07		2Q07		3Q07		4Q07		2007		1Q08		2Q08		3Q08		YTD Q3 2008

Units		107		116		126		137		144		144		155		159		165		165
Sales weeks		4,661		1,446		1,560		1,698		1,856		6,560		1,977		2,056		2,103		6,136
AWS		38,668		39,177		37,592		36,359		35,523		37,037		36,667		35,071		34,197		35,286
Revenues		180,230		56,656		58,649		61,738		65,936		242,979		72,491		72,107		71,916		216,514

Operating costs
	Cost of sales	49,692		15,851		16,070		16,922		18,292		67,135		19,894		19,870		19,645		59,409
	Labor	62,677		19,551		20,480		21,843		23,266		85,140		25,240		24,956		24,753		74,949
	Operating	30,782		9,382		10,004		10,835		11,909		42,130		12,338		13,304		14,211		39,853
	Occupancy	11,725		3,636		3,963		4,231		4,222		16,052		4,938		5,106		5,058		15,102
	Minority interest	1,123		314		284		209		11		818		208		117		96		421
	Depreciation & amortization	9,205		2,823		3,164		3,417		3,718		13,122		4,056		4,276		4,394		12,726
Restaurant operating income		15,026		5,099		4,684		4,281		4,518		18,582		5,817		4,478		3,759		14,054

Revenues		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales		27.6	%	28.0	%	27.4	%	27.4	%	27.7	%	27.6	%	27.4	%	27.6	%	27.3	%	27.4	%
Labor		34.8	%	34.5	%	34.9	%	35.4	%	35.3	%	35.0	%	34.8	%	34.6	%	34.4	%	34.6	%
Operating		17.1	%	16.6	%	17.1	%	17.5	%	18.1	%	17.3	%	17.0	%	18.5	%	19.8	%	18.4	%
Occupancy		6.5	%	6.4	%	6.8	%	6.9	%	6.4	%	6.6	%	6.8	%	7.1	%	7.0	%	7.0	%
Minority interest		0.6	%	0.6	%	0.5	%	0.3	%	0.0	%	0.3	%	0.3	%	0.2	%	0.1	%	0.2	%
Depreciation & amortization		5.1	%	5.0	%	5.4	%	5.5	%	5.6	%	5.4	%	5.6	%	5.9	%	6.1	%	5.9	%
Restaurant operating income		8.3	%	9.0	%	8.0	%	6.9	%	6.9	%	7.6	%	8.0	%	6.2	%	5.2	%	6.5	%





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		3,759		14,054
Add: Minority interest		1,123		314		284		209		11		818		208		117		96		421
Less: Preopening expenses		(4,283	)	(1,283	)	(1,506	)	(1,965	)	(1,217	)	(5,971	)	(1,095	)	(538	)	(787	)	(2,420	)
Less: Partner investment expense		(896	)	(525	)	(285	)	(362	)	(174	)	(1,346	)	(656	)	-		(202	)	(858	)
Less: Asset impairment charge		-		-		-		-		-		-		-		-		(7,510	)	(7,510	)
Income from operations		10,970		3,605		3,177		2,163		3,138		12,083		4,274		4,057		(4,644	)	3,687

Note: General and administrative expenses are reflected in the Company’s consolidated results

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
3Q08	71,081	17,282	16,651	23,528	20,016	19,341	22,201	24,190	12,116	226,406

2008	222,735	54,409	52,320	73,073	60,208	60,791	69,062	76,288	25,420	694,306


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

2008	112,606	107,315	95,822	104,094	85,766	86,597	88,542	97,805	96,651	99,756



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%

2008	-2.4%	-0.3%	0.2%	-0.8%	-1.4%	-2.5%	-5.8%	-12.7%	-	-2.4%



Year-Over-Year Change Comp Store Sales (3)

Units	50	13	14	18	18	18	20	3	-	154

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%

2008	-2.2%	-0.3%	0.2%	-0.8%	-1.4%	-2.5%	-4.1%	-3.4%	-	-1.8%



(1) Includes all restaurants opened in the period indicated.
(2) A unit is included in the year-over-year change in AWS in the thirteenth month of operation.
(3) A unit becomes comparable in the eighteenth month of operation.

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	21	165

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
3Q08	679	1,900	5,272	8,387	10,012	10,834	12,899	14,249	7,684	71,916

2008	2,106	5,974	16,390	25,899	30,925	33,324	39,514	43,931	18,451	216,514



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
3Q08	52,256	36,548	36,867	37,949	38,507	34,723	33,074	29,624	33,265	34,197

2008	54,003	38,299	38,205	39,062	39,647	35,601	33,773	30,444	35,485	35,286



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%
3Q08	-0.9%	-2.3%	-4.9%	-3.9%	-3.6%	-2.5%	-1.7%	-10.5%	-	-4.2%

2008	-4.5%	-5.4%	-6.9%	-5.2%	-2.0%	-1.3%	-1.8%	-12.8%	-	-4.1%



Year-Over-Year Change Comp Store Sales (3)

Units	1	4	11	17	20	24	30	11	-	118

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%
3Q08	-0.9%	-2.3%	-4.9%	-3.9%	-3.6%	-2.5%	-1.7%	-1.0%	-	-2.9%

2008	-4.5%	-5.4%	-6.9%	-5.2%	-2.0%	-1.3%	-0.8%	-1.0%	-	-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.

Investor:
P.F. Chang’s China Bistro, Inc.
Mark Mumford, 480-888-3000
mark.mumford@pfcb.com
or
Media:
Dig Communications
Pete Marino, 312-339-8833
pmarino@digcommunications.com

(Source: Business Wire )

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