P.F. Chang's Earns $0.36 Per Share

(000 except per share data)                 2Q07          2Q06

                                       ---------------------------

 Revenues                               $    267,409 $     225,981

 Net Income                             $      9,277 $       8,089

 Diluted Earnings Per Share             $       0.36 $        0.30

 Shares used in diluted EPS calculation       26,129        27,258

Bistro Results

Revenues for the Company's Bistro concept increased 13.3% to $208.2 million for the second quarter of 2007 compared to $183.7 million in the second quarter of 2006. Bistro revenues were $1.8 million below the Company's forecast primarily due to reduced guest traffic. Comparable store sales for the Bistro declined 1.3% compared to a forecasted decline of 0.1%.

Pei Wei Results

Revenues for the Company's Pei Wei concept increased 38.7% to $58.6 million for the second quarter of 2007 compared to $42.3 million in the second quarter of 2006. Pei Wei revenues were $2.0 million below the Company's forecast due to lower than expected sales at stores opened during 2007. Comparable store sales increased 1.0% compared to a forecasted increase of 1.7%.

2007 Expectations

The Company has revised its full year forecast earnings per share from $1.38 to $1.34 due primarily to expectations of lower revenues driven by changes to anticipated comparable store sales growth at both concepts and lower than expected sales at 2007 new Pei Wei store openings.

Bistro Expectations

The Company plans to open 19 new Bistro restaurants during 2007, five of which were open by the end of the second quarter. Fiscal year 2007 revenues are expected to increase 12.0% over prior year to $847.2 million compared to the Company's previous forecast of $850.4 million. Comparable store sales growth expectations have been modified to reflect reductions in anticipated guest traffic based on recent trends as follows:

                                           Previous       Revised

                                            Forecast      Forecast

                                       -----------------------------

Third Quarter                                    (0.2%)       (1.3%)

Fourth Quarter                                   (1.9%)       (1.9%)

Full Year                                        (1.2%)       (1.6%)

Pei Wei Expectations

The Company plans to open 37 new Pei Wei restaurants during 2007, 19 of which were open by the end of the second quarter. Fiscal year 2007 revenues are expected to increase 37.4% over prior year to $247.6 million compared to the Company's previous forecast of $253.9 million. The Company has lowered the full-year forecast of comparable store sales growth from 1.4% to 0.8%.

Authorization of Share Repurchase Program

On July 19, 2007, the Company's Board of Directors authorized a program to repurchase up to $50.0 million of the Company's outstanding shares of common stock from time to time in the open market or in private during the two-year period ending July 19, 2009, at prevailing market prices. The Company initially intends to use cash on hand and available credit lines to repurchase shares under the program.



Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet