SCOTTSDALE, Ariz.--(BUSINESS WIRE)--P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB) today announced its agreement to acquire a majority equity ownership position in True Food Kitchen, a Fox Restaurant Concept specializing in healthy, locally sourced and globally inspired meals.
Rick Federico, Chairman and CEO of P.F. Chang’s, said, “We are extremely excited about this opportunity, as True Food Kitchen is a great brand with tremendous potential. The True Food Kitchen concept is aligned with the rising demand for healthier menu options, and the restaurants provide a fun and innovative dining experience. True Food Kitchen has already established a dedicated consumer following, and we believe the concept has significant opportunities for growth.”
In 2009, P.F. Chang’s extended a loan facility to fund early stage development of True Food Kitchen, with a right to convert its loan into a majority equity ownership position. In February 2012, after receiving authorization from its Board of Directors, P.F. Chang’s and True Food Kitchen’s partners mutually agreed to exercise the Company’s conversion option, which is expected to be completed during the second quarter of 2012. Upon completion, P.F. Chang’s will own 51 percent of True Food Kitchen, with potential rights and obligations that would enable the Company to increase its ownership to 90 percent or more in the future. Further details on the terms of the True Food Kitchen agreement are contained within the Company’s Annual Report on Form 10-K that will be filed today.
Sam Fox, Founder and CEO of Fox Restaurant Concepts, said, “Dr. Andrew Weil and I believe True Food Kitchen is well positioned to capitalize on the current direction of the food industry. We have formed a great relationship with the P.F. Chang’s management team and are extremely pleased by their commitment to continue our partnership. We look forward to making a difference in the lives of so many guests through the continued expansion and development of our True Food Kitchen restaurants.”
Federico added, “Sam and his team have done a great job creating a unique concept in True Food Kitchen. Upon completion of the conversion, all operation and development activities will continue to be executed by Fox Restaurant Concepts and the True Food Kitchen team, as our primary focus remains on driving growth at P.F. Chang’s Bistro and Pei Wei concepts.”
True Food Kitchen currently has four locations, with two restaurants in Arizona and two in California. Two additional True Food Kitchens are planned for 2012.
About True Food Kitchen
True Food Kitchen is an innovative new eatery developed in partnership with Fox Restaurant Concepts and best-selling author Dr. Andrew Weil. True Food Kitchen offers great-tasting, globally inspired cuisine that nourishes body, mind, and spirit. Open for lunch, dinner and weekend brunch at The Biltmore Fashion Park since 2008, True Food Kitchen opened its doors in California for the first time in August 2010 at Fashion Island in Newport Beach, as well as opening a second Arizona location at the Scottsdale Quarter in November 2010. In 2011, the second California location opened in Santa Monica. For more information, visit www.truefoodkitchen.com.
About Fox Restaurant Concepts
Fox Restaurant Concepts is a collection of original, thriving boutique restaurants in Arizona, California, Colorado, Texas and Kansas. Founder Sam Fox began with a single restaurant, Wildflower, in 1998 and today heads a dynamic, growing restaurant group encompassing 12 unique concepts across 31 restaurants with more than 1,900 employees. Fox Restaurant Concepts creates gorgeous, contemporary settings, highly flavorful, fresh, innovative cuisine, and offers attentive, gracious service. For more information, visit www.foxrc.com.
About P.F. Chang’s
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 its brands to international markets and retail products, both of which are operated under licensing agreements.
Note with respect to forward-looking statements
The statements contained in this press release that are not purely historical 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 existing or new True Food Kitchen restaurants to achieve expected results, intense competition in the restaurant industry, damage to our or the True Food Kitchen’s brands or reputation, our ability to successfully expand operations and changes in general economic and political conditions that affect consumer spending. More detailed information about the Company and the risk factors that may affect the realization of any forward-looking statements is set forth in the Company's filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.