P.F. Chang's Reports Second Quarter Earnings and Raises Fiscal 2009 Earnings Guidance

For the second quarter of 2009, consolidated revenues were $301.4 million compared to $301.5 million for the second quarter of 2008. Sales at company-owned P.F. Chang's China Bistro restaurants accounted for $227.1 million of consolidated revenues and sales at the Company's Pei Wei Asian Diner restaurants accounted for $74.2 million of consolidated revenues.

For the 13 weeks ended June 28, 2009, comparable store sales declined 6.8% at the Bistro due to a significant reduction in overall guest traffic combined with a very slight decline in average check reflecting the net impact of menu mix changes. Comparable store sales at the Bistro decreased 6.6%, 7.3%, and 6.5% in April, May and June, respectively.

For the 13 weeks ended June 28, 2009, comparable store sales declined 0.1% at Pei Wei due to a decline in average check reflecting the net impact of menu mix changes offset by an overall increase in guest traffic. Comparable store sales at Pei Wei were flat in April, increased 0.7% in May and decreased 1.0% in June.

During the second quarter of 2009, the Company opened one new Pei Wei restaurant.

2009 Expectations

The Company continues to expect a negative sales environment for the remainder of 2009. As a result, the Company anticipates average weekly sales for fiscal 2009 to decline approximately 6% to 7% at the Bistro and approximately 3% to 4% at Pei Wei. Consolidated revenues for fiscal 2009 are expected to increase 1% to 2% compared to fiscal 2008.

Despite lower anticipated average weekly sales, as a result of continued restaurant operating margin improvements, the Company has increased its estimate of fiscal 2009 EPS from continuing operations to a range of $1.60 to $1.65 per share.

The Company currently expects to open eight new Bistro restaurants and seven new Pei Wei restaurants during fiscal 2009. As a result, the Company continues to anticipate a significant reduction in preopening expenses for fiscal 2009 compared to fiscal 2008. Gross capital expenditures for fiscal 2009 are expected to approximate $45.0 million to $55.0 million.

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