P.F. Chang's Reports Third Quarter Earnings

P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB) today reported consolidated income from continuing operations(1) of $6.2 million for the third quarter ended September 27, 2009 compared to $7.7 million for the third quarter of the prior year. Net income (2) for the third quarter of fiscal 2009 totaled $6.2 million compared to $3.0 million for the third quarter of the prior year.

Income from continuing operations(1) per diluted share for the third quarter of fiscal 2009 was $0.27 compared to $0.32 for the third quarter of the prior year. Net income (2) per diluted share was $0.27 compared to $0.12 in the prior year. Prior year net income includes $7.5 million in pre-tax, non-cash asset impairment charges included in discontinued operations that were recognized during the third quarter in connection with the closure of 10 Pei Wei restaurants during the fourth quarter of 2008.

(1) Income from continuing operations refers to Income from continuing operations, net of tax attributable to PFCB common stockholders
(2) Net income refers to Net income attributable to PFCB common stockholders
For the third quarter of 2009, consolidated revenues were $290.3 million compared to $295.9 million for the third quarter of 2008. Sales at company-owned P.F. Chang's China Bistro restaurants accounted for $217.1 million of consolidated revenues and sales at the Company's Pei Wei Asian Diner restaurants accounted for $73.2 million of consolidated revenues.

For the 13 weeks ended September 27, 2009, comparable store sales declined 8.5% at the Bistro due to a 6% to 7% reduction in overall guest traffic combined with a slight decline in average check reflecting the net impact of menu mix changes. Comparable store sales at the Bistro decreased 8.0%, 9.4%, and 8.1% in July, August and September, respectively.

For the 13 weeks ended September 27, 2009, comparable store sales declined 0.7% at Pei Wei due to a slight decline in average check reflecting the net impact of menu mix changes partially offset by a flat to 1% increase in overall guest traffic. Comparable store sales at Pei Wei decreased 1.8% and 2.5% in July and August, respectively and increased 2.5% in September.

During the third quarter of 2009, the Company opened two new Bistro and three new Pei Wei restaurants.

2009 Expectations

The Company expects average weekly sales for the fourth quarter of fiscal 2009 to decline approximately 6% at the Bistro and increase approximately 1% at Pei Wei versus the prior year. The Company expects to open five new Bistro restaurants and two new Pei Wei restaurants during the fourth quarter of fiscal 2009. Based on the foregoing, consolidated revenues for the fourth quarter are anticipated to range from $318 million to $320 million. The Company has increased full year earnings expectations and now expects fiscal 2009 EPS from continuing operations to range from $1.70 to $1.75 per share.

2010 Development

The Company currently expects to open five new Bistro restaurants and five new Pei Wei restaurants during fiscal 2010.

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