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.
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