Chang's Continues Expansion

SCOTTSDALE, AZ-Despite rising costs, and declining comp sales and profits, PF Chang’s will continue to grow its namesake Bistro and Pei Wei Asian Diner concepts, executives said at the restaurant chain’s second quarter conference call.

The company will open between 35 and 38 new Pei Weis next year, with a larger proportion to be opened in new or underpenetrated markets, including Detroit, Tampa, Fla., Memphis, Miami, Boston, and metro Philadelphia. The company also plans to open 18 to 20 new Bistros next year.

Though second quarter revenues rose 14% to nearly $226 million, comparable-store sales decreased 1.0% at the Bistro and dropped 3.9% at Pei Wei. Net income declined to $8.1 million from $9.3 million, in part because of accounting changes. Now, the company has cut its comp-sales expectations for both the Bistro and Pei Wei, as diners literally tighten their belts.