X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SCOTTSDALE, AZ-With declining comp sales at all its units, P.F. Chang’s China Bistro will moderate the expansion of its Bistro and Pei Wei concepts, and will not expand Taneko at all, executives said today at its second quarter conference call.

The company plans to open 19 new Bistro restaurants during 2007, and 15 to 17 new units next year, said Robert T. Vivian, president of P.F. Chang’s China Bistro. Three “very aggressive” deals scheduled for 2008 already have been scrapped, and two openings planned for 2008 may move into late 2007.

“There is no need for us to risk capital on deals that require everything to go right,” Vivian said.

The company plans to open 37 new Pei Wei restaurants during 2007, 19 of which were open by the end of the second quarter. The chain has reached a sales point where continuing to accelerate expansion will put pressure on performance.

“At this point, 2008 [openings] will look similar to 2007,” said Richard Federico, chairman and CEO. New units primarily will fill in markets that the chain entered in 2007 to create brand presence.

Expansion of Taneko has been halted, while the company focuses on strengthening the brand and marketing the existing unit to improve sales by September or October.

“Candidly, if we don’t see results in that time frame, by the end of the year we would have to reassess,” Federico said.

The chain reported earnings of $9.3 million for the second quarter, compared to $8.1 million for the second quarter of last year. Total revenues were $267.4 million, up from $226 million last year. By division, Bistro revenues rose 13.3% from last year to $208.2 million. Comp-store sales, however, declined 1.3%. Pei Wei revenues rose 38.7% from last year to $58.6 million. Comp-store sales rose 1%, lower than predicted.

P.F. Chang’s China Bistro, Inc. owns and operates 284 restaurants under the P.F. Chang’s China Bistro, Pei Wei Asian Diner and Taneko Japanese Tavern banners.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.