P.F. Chang’s Reports Fourth Quarter and Full Year Fiscal 2010 Results

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the fourth quarter and fiscal year ended January 2, 2011.

	13 Weeks		14 Weeks				52 Weeks		53 Weeks
(000 except per share data)	Q4 2010		Q4 2009		% Change		FY 2010		FY 2009		% Change
Revenues	$	311,180	$	326,653	-4.7	%	$	1,242,799	$	1,228,179	1.2	%
Income from continuing operations	$	14,639	$	11,980	22.2	%	$	46,562	$	43,676	6.6	%
Net income	$	14,679	$	12,035	22.0	%	$	46,608	$	43,197	7.9	%
Diluted income per share:
Income from continuing operations	$	0.64	$	0.52	23.1	%	$	2.01	$	1.87	7.5	%
Net income	$	0.64	$	0.52	23.1	%	$	2.02	$	1.85	9.2	%

Highlights for the fourth quarter of 2010 compared to the prior year quarter include:

• Consolidated revenues declined 4.7% to $311.2 million including the impact of one less operating week during the fourth quarter of fiscal 2010.
• Comparable store sales increased 0.1% at the Bistro and 1.3% at Pei Wei.
• Net income increased 22.0% to $14.7 million.
• Net income per diluted share increased 23.1% to $0.64.

Highlights for fiscal 2010 compared to prior year include:

• Consolidated revenues increased 1.2% to $1,242.8 million including the impact of one less operating week during fiscal 2010 compared to fiscal 2009.
• Comparable store sales declined 0.1% at the Bistro and increased 1.8% at Pei Wei.
• Net income increased 7.9% to $46.6 million.
• Net income per diluted share increased 9.2% to $2.02.

Fourth quarter comparable store sales

	Fiscal 2010
	October		November		December		Total Q4
Bistro
Traffic effect	0.5	%	-0.3	%	-2.8	%	-0.9	%
Average ticket effect	0.3	%	0.8	%	1.9	%	1.0	%
Total comparable store sales	0.8	%	0.5	%	-0.9	%	0.1	%
Pei Wei
Traffic effect	-1.1	%	-1.5	%	0.0	%	-0.9	%
Average ticket effect	2.2	%	2.2	%	2.2	%	2.2	%
Total comparable store sales	1.1	%	0.7	%	2.2	%	1.3	%

Bistro

The Bistro achieved positive same store sales in the fourth quarter of 2010. Average ticket at the Bistro was positive during the quarter due to the benefit of a menu price increase combined with improvements in high dollar transactions. Traffic declined during the fourth quarter partially due to the impact of severe winter weather in late December.

Pei Wei

Pei Wei achieved positive same store sales in the fourth quarter of 2010. Average ticket at Pei Wei was positive for the entire quarter including the collective impact of incremental sales of small plate menu items, greater online ordering usage and the benefit of a menu price increase.

Comparable store sales for the fourth quarter of fiscal 2010 reflect results from the 13 week operating period in the current year compared to the same 13 week operating period in the prior year. Comparable store sales for December 2010 reflect results from the 4 week operating period in the current year compared to the same 4 week operating period in the prior year.

Global Brand Development

Global Brand Development revenues totaled $0.9 million for the fourth quarter of 2010 related to fees from seven international Bistro restaurants and a retail line of premium frozen food entrées, all of which operate under licensing agreements, as well as two Bistro restaurants operated in Hawaii under a joint venture arrangement.

Quarterly dividend

The Company’s Board of Directors authorized a cash dividend payment of $0.29 per share on the Company’s outstanding common stock. The dividend is payable on March 14, 2011 to shareholders of record at the close of business on February 28, 2011. The amount of the cash dividend was computed based on 45% of the Company’s net income for the quarter ended January 2, 2011.

2011 expectations

The Company anticipates that fiscal 2011 consolidated revenues will increase approximately three to four percent compared to fiscal 2010 due to expectations of positive same store sales at both concepts combined with revenues from nine to thirteen anticipated new restaurant openings during fiscal 2011 and the benefit of a full year of revenues for restaurants that opened during fiscal 2010.

The Company expects to experience higher commodity costs and increased labor wage rates during fiscal 2011 which will be partially offset with a slight menu price increase at both concepts. Despite these cost pressures, the Company anticipates that fiscal 2011 restaurant operating margins will increase compared to fiscal 2010, primarily due to lapping the impact of the first quarter 2010 Bistro Happy Hour rollout combined with a higher contribution from Global Brand Development businesses. In addition, the Company expects an increase in general and administrative expenses in fiscal 2011, primarily related to higher share-based compensation expense.

The Company expects to open three to five new Bistro restaurants and six to eight new Pei Wei restaurants during fiscal 2011. In addition, the Company expects its international partners collectively to open seven to ten Bistro restaurants in international markets during fiscal 2011.

The Company plans to repurchase approximately $60 million in common shares under its current authorization during fiscal 2011.

Overall, the Company expects consolidated diluted earnings per share to range from $2.15 to $2.20 for fiscal 2011, an increase of approximately 10%.

Definitions

The following definitions apply to these terms as used throughout this release:

• Income from continuing operations refers to income from continuing operations, net of tax, attributable to PFCB common stockholders.
• Net income refers to net income attributable to PFCB common stockholders.
• Comparable store sales changes include company-operated restaurants and represent the change in period-over-period sales for the comparable restaurant base. A restaurant becomes comparable in its eighteenth month of operation.

Financial reporting dates in fiscal 2011

The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2011 as outlined below. The earnings press releases will be issued at approximately 7:00 am ET and the conference calls will follow at 1:00 pm ET on the same day. Dates and times could be subject to change.

Quarter Ending	Earnings Release and Conference Call Dates
April 3, 2011	April 27, 2011
July 3, 2011	July 27, 2011
October 2, 2011	October 26, 2011

Conference call information

The Company is hosting a conference call today at 12:00 pm ET in which management will provide further details on the fourth quarter results. A webcast of the call can be accessed through the company’s website at http://www.pfcb.com.

About the Company

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, Chinese-inspired cuisine and American hospitality in a sophisticated, contemporary bistro setting. Pei Wei Asian Diner offers a modest menu of freshly prepared pan-Asian cuisine in a relaxed, warm environment offering attentive counter service and take-out flexibility. In addition, the Company has extended the P.F. Chang’s brand to international markets and retail products both of which are operated under licensing agreements.

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 preopening and partner investment expenses are associated with expansion of the Company’s business and vary in timing and magnitude, they make an accurate assessment of the health of ongoing operations more difficult and are therefore excluded. Additionally, general and administrative expenses are generally not specifically identifiable to individual business units and are only included in the Company’s consolidated financial presentation as these costs relate to support of both restaurant concepts and the extension of the Company’s brands into international markets and retail products. As the Company’s expansion is funded entirely from its ongoing restaurant operations, restaurant operating income is a consideration of management when determining whether and when to open additional restaurants. The non-GAAP financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Please see the non-GAAP to GAAP reconciliation at the bottom of pages 6 through 8 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.

Note with respect to forward-looking statements

The statements contained in this press release that are not purely historical, including the Company’s estimates of its earnings, revenues and anticipated new restaurants are forward-looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, failure of the Company’s existing or new restaurants to achieve expected results; damage to our brands or reputation; development is critical to the Company’s long-term success; changes in general economic conditions and dependence on sales concentrated in certain geographic areas; intense competition in the restaurant industry; changes in government legislation that may increase labor costs; litigation; adverse public or medical opinions about the health effects of consuming our products; failure to comply with governmental regulations; changes in food costs; the inability to retain key personnel; federal and state tax rules could negatively impact results of operations and financial position; fluctuating insurance requirements and costs; seasonality of the Company’s business; adverse impact if information technology and computer systems do not perform properly 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			14 Weeks Ended			52 Weeks Ended			53 Weeks Ended
	January 2,			January 3,			January 2,			January 3,
	2011			2010			2011			2010
Revenues	$	311,180		$	326,653		$	1,242,799		$	1,228,179
Costs and expenses:
Cost of sales		80,621			87,328			324,731			326,421
Labor		101,610			107,052			410,000			401,583
Operating		51,886			53,476			208,294			203,859
Occupancy		18,756			18,288			73,707			70,635
General and administrative		19,839			22,004			81,883			82,749
Depreciation and amortization		19,832			18,303			77,486			74,429
Preopening expense		439			1,420			1,976			3,919
Partner investment expense		(47	)		(92	)		(318	)		(629	)
Total costs and expenses		292,936			307,779			1,177,759			1,162,966
Income from operations		18,244			18,874			65,040			65,213
Interest and other income (expense), net		333			(345	)		(572	)		(1,637	)
Income from continuing operations before taxes		18,577			18,529			64,468			63,576
Provision for income taxes		(3,773	)		(5,954	)		(17,122	)		(18,492	)
Income from continuing operations, net of tax		14,804			12,575			47,346			45,084
Income (loss) from discontinued operations, net of tax		40			55			46			(479	)
Net income		14,844			12,630			47,392			44,605
Less: Net income attributable to noncontrolling interests		165			595			784			1,408
Net income attributable to PFCB	$	14,679		$	12,035		$	46,608		$	43,197
Basic income per share:
Income from continuing operations attributable to PFCB common stockholders	$	0.65		$	0.53		$	2.05		$	1.90
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders		0.00			0.00			0.00			(0.02	)
Net income attributable to PFCB common stockholders	$	0.65		$	0.53		$	2.05		$	1.88
Diluted income per share:
Income from continuing operations attributable to PFCB common stockholders	$	0.64		$	0.52		$	2.01		$	1.87
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders		0.00			0.00			0.01			(0.02	)
Net income attributable to PFCB common stockholders	$	0.64		$	0.52		$	2.02		$	1.85
Weighted average shares used in computation:
Basic		22,599			22,633			22,689			22,986
Diluted		23,011			23,045			23,115			23,413
Cash dividends declared per share	$	0.29		$	-		$	0.92		$	-
Amounts attributable to PFCB:
Income from continuing operations, net of tax	$	14,639		$	11,980		$	46,562		$	43,676
Income (loss) from discontinued operations, net of tax		40			55			46			(479	)
Net income attributable to PFCB	$	14,679		$	12,035		$	46,608		$	43,197

P.F. Chang's China Bistro, Inc.
Supplemental Financial Information
			2008			1Q09			2Q09			3Q09			4Q09			2009			1Q10			2Q10			3Q10			4Q10			YTD Q4 2010
Units				348			350			351			356			363			363			364			366			368			369			369
Sales weeks				17,170			4,531			4,563			4,604			5,058			18,756			4,731			4,736			4,770			4,791			19,028
AWS				69,780			68,382			66,044			63,060			64,581			65,482			65,604			66,055			64,656			64,951			65,314
Revenues (1)				1,198,124			309,837			301,360			290,329			326,653			1,228,179			310,371			312,838			308,410			311,180			1,242,799
Operating costs
	Cost of sales			325,630			83,072			79,657			76,364			87,328			326,421			84,013			81,717			78,380			80,621			324,731
	Labor			396,911			100,707			98,111			95,713			107,052			401,583			104,475			102,295			101,620			101,610			410,000
	Operating			198,967			50,691			48,809			50,883			53,476			203,859			52,753			51,597			52,058			51,886			208,294
	Occupancy			69,809			17,378			17,403			17,566			18,288			70,635			17,838			18,609			18,504			18,756			73,707
	Net income attributable to noncontrolling interests			1,933			370			288			155			595			1,408			206			241			172			165			784
	Depreciation & amortization			68,711			18,496			18,575			19,055			18,303			74,429			19,001			19,335			19,318			19,832			77,486
Restaurant operating income				136,163			39,123			38,517			30,593			41,611			149,844			32,085			39,044			38,358			38,310			147,797
Development costs
	Preopening expenses			8,457			488			461			1,550			1,420			3,919			133			832			572			439			1,976
	Partner investment expense			(354	)		(464	)		(91	)		18			(92	)		(629	)		11			(135	)		(147	)		(47	)		(318	)
Other expenses
	General and administrative (2)			77,488			19,814			20,523			20,408			22,004			82,749			19,053			19,765			23,226			19,839			81,883
	Interest and other (income) expense, net			3,362			940			437			(85	)		345			1,637			415			665			(175	)		(333	)		572
	Provision for income taxes			12,193			4,953			5,108			2,477			5,954			18,492			3,788			5,144			4,417			3,773			17,122
Income from continuing operations				35,017			13,392			12,079			6,225			11,980			43,676			8,685			12,773			10,465			14,639			46,562
Income (loss) from discontinued operations, net of tax				(7,591	)		(43	)		(474	)		(17	)		55			(479	)		6			-			-			40			46
Net income attributable to PFCB				27,426			13,349			11,605			6,208			12,035			43,197			8,691			12,773			10,465			14,679			46,608
		Income from continuing operations per FDS	$	1.45		$	0.56		$	0.51		$	0.27		$	0.52		$	1.87		$	0.38		$	0.55		$	0.45		$	0.64		$	2.01
Fully diluted shares (FDS)				24,080			23,795			23,526			23,285			23,045			23,413			23,104			23,277			23,070			23,011			23,115
Revenues				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales				27.2	%		26.8	%		26.4	%		26.3	%		26.7	%		26.6	%		27.1	%		26.1	%		25.4	%		25.9	%		26.1	%
Labor				33.1	%		32.5	%		32.6	%		33.0	%		32.8	%		32.7	%		33.7	%		32.7	%		32.9	%		32.7	%		33.0	%
Operating				16.6	%		16.4	%		16.2	%		17.5	%		16.4	%		16.6	%		17.0	%		16.5	%		16.9	%		16.7	%		16.8	%
Occupancy				5.8	%		5.6	%		5.8	%		6.1	%		5.6	%		5.8	%		5.7	%		5.9	%		6.0	%		6.0	%		5.9	%
Net income attributable to noncontrolling interests				0.2	%		0.1	%		0.1	%		0.1	%		0.2	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Depreciation & amortization				5.7	%		6.0	%		6.2	%		6.6	%		5.6	%		6.1	%		6.1	%		6.2	%		6.3	%		6.4	%		6.2	%
Restaurant operating income				11.4	%		12.6	%		12.8	%		10.5	%		12.7	%		12.2	%		10.3	%		12.5	%		12.4	%		12.3	%		11.9	%
Preopening expenses				0.7	%		0.2	%		0.2	%		0.5	%		0.4	%		0.3	%		0.0	%		0.3	%		0.2	%		0.1	%		0.2	%
Partner investment expense				(0.0	%)		(0.1	%)		(0.0	%)		0.0	%		(0.0	%)		(0.1	%)		0.0	%		(0.0	%)		(0.0	%)		(0.0	%)		(0.0	%)
General and administrative (2)				6.5	%		6.4	%		6.8	%		7.0	%		6.7	%		6.7	%		6.1	%		6.3	%		7.5	%		6.4	%		6.6	%
Interest and other (income) expense, net				0.3	%		0.3	%		0.1	%		(0.0	%)		0.1	%		0.1	%		0.1	%		0.2	%		(0.1	%)		(0.1	%)		0.0	%
Provision for income taxes				1.0	%		1.6	%		1.7	%		0.9	%		1.8	%		1.5	%		1.2	%		1.6	%		1.4	%		1.2	%		1.4	%
Income from continuing operations				2.9	%		4.3	%		4.0	%		2.1	%		3.7	%		3.6	%		2.8	%		4.1	%		3.4	%		4.7	%		3.7	%
Income (loss) from discontinued operations, net of tax				(0.6	%)		(0.0	%)		(0.2	%)		(0.0	%)		0.0	%		(0.0	%)		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Net income attributable to PFCB				2.3	%		4.3	%		3.9	%		2.1	%		3.7	%		3.5	%		2.8	%		4.1	%		3.4	%		4.7	%		3.8	%
Reconciliation of Non-GAAP Financial Information to GAAP measures:
Restaurant operating income				136,163			39,123			38,517			30,593			41,611			149,844			32,085			39,044			38,358			38,310			147,797
Add: Net income attributable to noncontrolling interests				1,933			370			288			155			595			1,408			206			241			172			165			784
Less: General and administrative (2)				(77,488	)		(19,814	)		(20,523	)		(20,408	)		(22,004	)		(82,749	)		(19,053	)		(19,765	)		(23,226	)		(19,839	)		(81,883	)
Less: Preopening expenses				(8,457	)		(488	)		(461	)		(1,550	)		(1,420	)		(3,919	)		(133	)		(832	)		(572	)		(439	)		(1,976	)
Less: Partner investment expense				354			464			91			(18	)		92			629			(11	)		135			147			47			318
Income from operations				52,505			19,655			17,912			8,772			18,874			65,213			13,094			18,823			14,879			18,244			65,040

Notes:	Consolidated results include the impact of Shared Services and Other as well as the Bistro and Pei Wei concepts
	(1)	Consolidated revenues include revenues related to the Bistro and Pei Wei concepts as well as Global Brand Development initiatives
	(2)	Consolidated general and administrative expenses includes the costs of supporting the Company, including all concepts as well as Global Brand Development initiatives

Concept: P.F. Chang's China Bistro
Supplemental Financial Information
		2008		1Q09		2Q09		3Q09		4Q09		2009		1Q10		2Q10		3Q10		4Q10		YTD Q4 2010
Units		189		190		190		192		197		197		197		199		200		201		201
Sales weeks		9,373		2,458		2,470		2,486		2,736		10,150		2,561		2,565		2,593		2,607		10,326
AWS		98,127		95,661		91,958		87,324		89,884		91,161		90,077		90,964		89,202		89,726		89,989
Revenues		919,963		235,141		227,144		217,093		245,943		925,321		230,767		233,365		231,309		233,931		929,372
Operating costs
	Cost of sales	249,911		62,963		59,749		56,624		65,480		244,816		62,711		60,914		58,135		60,008		241,768
	Labor	301,967		76,051		73,286		71,216		80,222		300,775		78,192		76,769		76,533		76,667		308,161
	Operating	149,083		36,973		36,373		37,487		40,050		150,883		38,546		38,183		38,554		37,804		153,087
	Occupancy	50,670		12,441		12,412		12,390		12,943		50,186		12,640		13,254		13,242		13,368		52,504
	Net income attributable to noncontrolling interests	1,361		179		145		104		110		538		71		93		62		70		296
	Depreciation & amortization	51,091		13,728		13,646		13,900		13,247		54,521		13,854		14,043		14,018		14,519		56,434
Restaurant operating income		115,880		32,806		31,533		25,372		33,891		123,602		24,753		30,109		30,765		31,495		117,122
Revenues		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales		27.2	%	26.8	%	26.3	%	26.1	%	26.6	%	26.5	%	27.2	%	26.1	%	25.1	%	25.7	%	26.0	%
Labor		32.8	%	32.3	%	32.3	%	32.8	%	32.6	%	32.5	%	33.9	%	32.9	%	33.1	%	32.8	%	33.2	%
Operating		16.2	%	15.7	%	16.0	%	17.3	%	16.3	%	16.3	%	16.7	%	16.4	%	16.7	%	16.2	%	16.5	%
Occupancy		5.5	%	5.3	%	5.5	%	5.7	%	5.3	%	5.4	%	5.5	%	5.7	%	5.7	%	5.7	%	5.6	%
Net income attributable to noncontrolling interests		0.1	%	0.1	%	0.1	%	0.0	%	0.0	%	0.1	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%
Depreciation & amortization		5.6	%	5.8	%	6.0	%	6.4	%	5.4	%	5.9	%	6.0	%	6.0	%	6.1	%	6.2	%	6.1	%
Restaurant operating income		12.6	%	14.0	%	13.9	%	11.7	%	13.8	%	13.4	%	10.7	%	12.9	%	13.3	%	13.5	%	12.6	%
Reconciliation of Non-GAAP Financial Information to GAAP measures:
Restaurant operating income		115,880		32,806		31,533		25,372		33,891		123,602		24,753		30,109		30,765		31,495		117,122
Add: Net income attributable to noncontrolling interests		1,361		179		145		104		110		538		71		93		62		70		296
Less: Preopening expenses		(5,677	)	(294	)	(280	)	(1,004	)	(1,257	)	(2,835	)	(26	)	(765	)	(411	)	(265	)	(1,467	)
Less: Partner investment expense		1,066		148		20		-		68		236		-		-		-		-		-
Income from operations		112,630		32,839		31,418		24,472		32,812		121,541		24,798		29,437		30,416		31,300		115,951

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

Concept: Pei Wei Asian Diner^(A)
Supplemental Financial Information
		2008		1Q09		2Q09		3Q09		4Q09		2009		1Q10		2Q10		3Q10		4Q10		YTD Q4 2010
Units		159		160		161		164		166		166		167		167		168		168		168
Sales weeks		7,797		2,073		2,093		2,118		2,322		8,606		2,170		2,171		2,177		2,184		8,702
AWS		35,675		36,011		35,459		34,578		34,701		35,171		36,597		35,991		34,998		34,950		35,632
Revenues		278,161		74,696		74,216		73,236		80,576		302,724		79,475		78,137		76,190		76,329		310,131
Operating costs
	Cost of sales	75,719		20,109		19,908		19,740		21,848		81,605		21,302		20,803		20,245		20,613		82,963
	Labor	94,944		24,656		24,825		24,497		26,830		100,808		26,283		25,526		25,087		24,943		101,839
	Operating	49,884		13,718		12,436		13,396		13,426		52,976		14,207		13,414		13,504		14,082		55,207
	Occupancy	19,139		4,937		4,991		5,176		5,345		20,449		5,198		5,355		5,262		5,388		21,203
	Net income attributable to noncontrolling interests	572		191		143		51		485		870		135		148		110		95		488
	Depreciation & amortization	16,158		4,350		4,440		4,647		4,666		18,103		4,647		4,762		4,772		4,761		18,942
Restaurant operating income		21,745		6,735		7,473		5,729		7,976		27,913		7,703		8,129		7,210		6,447		29,489
Revenues		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales		27.2	%	26.9	%	26.8	%	27.0	%	27.1	%	27.0	%	26.8	%	26.6	%	26.6	%	27.0	%	26.8	%
Labor		34.1	%	33.0	%	33.4	%	33.4	%	33.3	%	33.3	%	33.1	%	32.7	%	32.9	%	32.7	%	32.8	%
Operating		17.9	%	18.4	%	16.8	%	18.3	%	16.7	%	17.5	%	17.9	%	17.2	%	17.7	%	18.4	%	17.8	%
Occupancy		6.9	%	6.6	%	6.7	%	7.1	%	6.6	%	6.8	%	6.5	%	6.9	%	6.9	%	7.1	%	6.8	%
Net income attributable to noncontrolling interests		0.2	%	0.3	%	0.2	%	0.1	%	0.6	%	0.3	%	0.2	%	0.2	%	0.1	%	0.1	%	0.2	%
Depreciation & amortization		5.8	%	5.8	%	6.0	%	6.3	%	5.8	%	6.0	%	5.8	%	6.1	%	6.3	%	6.2	%	6.1	%
Restaurant operating income		7.8	%	9.0	%	10.1	%	7.8	%	9.9	%	9.2	%	9.7	%	10.4	%	9.5	%	8.4	%	9.5	%
Reconciliation of Non-GAAP Financial Information to GAAP measures:
Restaurant operating income		21,745		6,735		7,473		5,729		7,976		27,913		7,703		8,129		7,210		6,447		29,489
Add: Net income attributable to noncontrolling interests		572		191		143		51		485		870		135		148		110		95		488
Less: Preopening expenses		(2,780	)	(194	)	(181	)	(546	)	(163	)	(1,084	)	(107	)	(67	)	(161	)	(174	)	(509	)
Less: Partner investment expense		(712	)	316		71		(18	)	24		393		(11	)	135		147		47		318
Income from operations		18,825		7,048		7,506		5,216		8,322		28,092		7,720		8,345		7,306		6,415		29,786

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

(A) All current and historical operating results related to closed Pei Wei restaurants are reflected within discontinued operations for all periods presented

P.F. Chang's China Bistro
Supplemental Sales Information (Company Owned)
Year of Unit Opening (1)
	Pre-2002		2002		2003		2004		2005		2006		2007		2008		2009		2010	Total
Units	64		14		18		18		18		20		20		17		8		4	201
Sales (000)
1Q10	84,443		16,452		22,541		18,179		18,840		21,713		22,542		16,961		9,017		-	230,688
2Q10	84,934		16,111		22,795		19,015		19,043		21,928		22,913		17,483		8,620		481	233,323
3Q10	83,188		15,716		22,409		19,012		18,444		21,239		22,410		17,016		8,433		3,433	231,300
4Q10	84,993		16,280		22,489		18,539		18,639		21,607		22,143		17,058		8,100		4,068	233,916
2010	337,558		64,559		90,234		74,745		74,966		86,487		90,008		68,518		34,170		7,982	929,227
Average Weekly Sales (AWS)
1Q10	101,494		90,396		96,331		77,688		80,514		83,510		86,700		76,747		86,697		-	90,077
2Q10	102,084		88,522		97,414		81,262		81,380		84,339		88,125		79,106		82,887		120,210	90,964
3Q10	99,985		86,354		95,765		81,246		78,820		81,688		86,194		76,997		81,088		107,269	89,202
4Q10	102,155		89,451		96,108		79,227		79,654		83,104		85,164		77,187		77,885		88,438	89,726
2010	101,430		88,681		96,404		79,856		80,092		83,160		86,546		77,509		82,139		97,337	89,989
Year-Over-Year Change Comparable Store Sales (2)(3)
Units	64		14		18		18		18		20		20		17		1		-	190
1Q10	-4.0	%	-3.0	%	-1.7	%	-1.5	%	-1.8	%	-0.7	%	-0.9	%	-5.1	%	-		-	-2.7	%
2Q10	-1.0	%	0.2	%	1.1	%	2.4	%	1.0	%	1.8	%	1.1	%	-2.7	%	-		-	0.1	%
3Q10	1.4	%	2.8	%	3.0	%	3.7	%	2.7	%	3.6	%	3.2	%	1.6	%	-13.9	%	-	2.3	%
4Q10	-0.6	%	1.2	%	0.6	%	1.4	%	0.0	%	1.7	%	-0.6	%	0.0	%	-12.5	%	-	0.1	%
2010	-1.1	%	0.2	%	0.7	%	1.5	%	0.4	%	1.6	%	0.7	%	-1.2	%	-13.0	%	-	-0.1	%

(1)	Includes all restaurants opened in the period indicated.
(2)	A unit becomes comparable in the eighteenth month of operation.
(3)	Comparable store sales for each quarter of fiscal 2010 reflect results from the 13 week operating period in the current year compared to the same 13 week operating period in the prior year. Comparable store sales for fiscal 2010 reflect results from the 52 week operating period in the current year compared to the same 52 week operating period in the prior year.

Pei Wei Asian Diner
Supplemental Sales Information
Year of Unit Opening (1)
	Pre-2002		2002		2003		2004		2005		2006		2007		2008		2009		2010	Total
Units	5		11		17		19		23		27		32		25		7		2	168
Sales (000)
1Q10	2,748		5,557		8,770		10,017		11,151		13,175		13,954		10,399		3,075		570	79,416
2Q10	2,587		5,240		8,566		9,865		11,038		13,093		13,798		10,434		3,005		511	78,137
3Q10	2,463		5,050		8,260		9,583		10,813		12,898		13,418		10,079		2,900		726	76,190
4Q10	2,649		5,163		8,383		9,518		10,800		12,701		13,213		10,072		2,942		888	76,329
2010	10,447		21,010		33,979		38,983		43,802		51,867		54,383		40,984		11,922		2,695	310,072
Average Weekly Sales (AWS)
1Q10	42,270		38,861		39,683		40,556		37,295		37,535		33,543		31,997		33,796		47,443	36,597
2Q10	39,801		36,645		38,762		39,938		36,915		37,302		33,169		32,104		33,025		39,308	35,991
3Q10	37,893		35,317		37,374		38,797		36,165		36,747		32,253		31,013		31,864		38,211	34,998
4Q10	40,753		36,103		37,930		38,534		36,122		36,185		31,763		30,991		32,330		34,154	34,950
2010	40,179		36,731		38,437		39,456		36,624		36,942		32,682		31,526		32,754		38,505	35,632
Year-Over-Year Change Comparable Store Sales (2)(3)
Units	5		11		17		19		23		27		32		25		4		-	163
1Q10	1.8	%	0.6	%	0.7	%	-0.2	%	2.5	%	3.5	%	4.1	%	2.4	%	-		-	2.2	%
2Q10	1.4	%	0.2	%	2.3	%	1.7	%	3.1	%	4.2	%	3.7	%	3.8	%	-		-	3.0	%
3Q10	-0.6	%	-1.3	%	-0.2	%	-0.9	%	1.1	%	1.9	%	1.2	%	2.9	%	-2.6	%	-	0.8	%
4Q10	4.0	%	-0.3	%	1.1	%	1.5	%	1.7	%	1.1	%	0.3	%	2.7	%	2.5	%	-	1.3	%
2010	1.7	%	-0.2	%	1.0	%	0.5	%	2.1	%	2.7	%	2.4	%	3.0	%	0.7	%	-	1.8	%

(1)	Includes all restaurants opened in the period indicated.
(2)	A unit becomes comparable in the eighteenth month of operation.
(3)	Comparable store sales for each quarter of fiscal 2010 reflect results from the 13 week operating period in the current year compared to the same 13 week operating period in the prior year. Comparable store sales for fiscal 2010 reflect results from the 52 week operating period in the current year compared to the same 52 week operating period in the prior year.