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

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.