P.F. Chang's Fourth Quarter Revenues Grow 36%

    Restaurant Writers/Business Editors

    SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 5, 2005--P.F. Chang's China Bistro, Inc. (Nasdaq:PFCB) reported today that revenues increased 36% to $199.3 million for the fourth quarter ended January 2, 2005 from $146.1 million in the fourth quarter of 2003. The company had an additional week in fiscal 2004 (a 53-week year versus the typical 52-week year) which is reflected in the fourth-quarter revenues noted above. Sales at the company's P.F. Chang's China Bistro units accounted for $169.7 million of consolidated revenues while sales at the company's Pei Wei Asian Diner units accounted for $29.6 million of consolidated revenues.
    Comparable store sales at the Bistro increased 2.0% for the fourth quarter of 2004 as compared to the fourth quarter of 2003. The increase was the result of customer traffic growth as well as a price increase of approximately one percent. Comparable store sales for the months of October, November and December increased 2.8%, 1.7% and 1.2%, respectively.
    During the fourth quarter of 2004, the company opened seven new Bistro units (Hillsboro, OR; West NY, NJ; Lynnwood, WA; Fort Worth, TX; Lakewood, CO; Atlantic City, NJ; and Oklahoma City, OK) and six new Pei Wei units (Webster, TX; San Antonio, TX; Oklahoma City, OK; Lakewood, CO; Austin, TX; and Houston, TX).
    The company intends to release its fourth quarter earnings results on February 16, 2005 at approximately 7:00 am ET. A conference call will be held later that same day at 12:00 pm ET. A webcast of the conference call can be accessed at www.pfchangs.com

    P.F. Chang's China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F. Chang's China Bistro combines high-quality, traditional Chinese cuisine with attentive service and a high-energy, contemporary bistro setting. Pei Wei Asian Diner offers a modest menu of freshly prepared Asian cuisine served in a relaxed, warm environment offering attentive counter service and take-out flexibility.

    The statements contained in this press release that are not purely historical, including the company's estimates of its revenues, earnings and comparable store sales, are forward-looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, the company's ability to locate acceptable restaurant sites; open new restaurants and operate its restaurants profitably; the company's ability to hire, train and retain skilled management and other personnel; the company's ability to access sufficient financing on acceptable terms; changes in consumer tastes and trends; national, regional and local economic and weather conditions; changes in costs related to food, utilities and labor; and other risks described in the company's recent SEC filings.

P.F. Chang's China Bistro Supplemental Sales Information Year of Unit Opening (1)

Pre-1998 1998 1999 2000 Units 13 10 13 16 --------------------------------------------------------------------- Sales (000)

1Q04 21,212 15,241 18,758 23,801 2Q04 20,898 14,962 18,803 23,680 3Q04 20,591 15,185 19,036 23,974 4Q04 22,459 16,296 20,536 25,749 2004 85,159 61,683 77,133 97,203

Average Weekly Sales (AWS)

1Q04 125,514 117,235 110,996 114,427 2Q04 123,655 115,091 111,261 113,844 3Q04 121,838 116,805 112,637 115,260 4Q04 123,402 116,398 112,832 114,949 2004 123,598 116,382 111,949 114,626

Year-Over-Year Change in AWS (3)

1Q04 2.7% 0.4% 3.7% 6.1% 2Q04 1.3% -0.1% 2.6% 3.3% 3Q04 1.2% 2.2% 5.2% 4.2% 4Q04 2.1% 0.1% 4.3% 2.3% 2004 1.8% 0.7% 3.9% 4.0%

Year-Over-Year Change Comp Store Sales (2) (3)

Units 13 10 13 16 --------------------------------------------------------------------- 1Q04 2.7% 0.4% 3.7% 6.1% 2Q04 1.3% -0.1% 2.6% 3.3% 3Q04 1.2% 2.2% 5.2% 4.2% 4Q04 2.1% 0.1% 4.3% 2.3% 2004 1.8% 0.7% 3.9% 4.0%

P.F. Chang's China Bistro Supplemental Sales Information Year of Unit Opening (1)

2001 2002 2003 2004 Total Units 13 14 18 18 115 --------------------------------------------------------------------- Sales (000)

1Q04 19,194 17,970 24,724 3,901 144,799 2Q04 18,573 17,340 24,114 8,842 147,211 3Q04 18,258 17,293 24,285 11,142 149,764 4Q04 19,912 18,908 25,640 20,196 169,695 2004 75,936 71,511 98,762 44,082 611,469

Average Weekly Sales (AWS)

1Q04 113,573 98,734 105,656 95,145 111,213 2Q04 109,898 95,276 103,049 93,074 108,562 3Q04 108,037 95,018 103,781 92,086 108,367 4Q04 109,404 96,469 101,747 93,937 107,880 2004 110,212 96,376 103,524 93,394 108,938

Year-Over-Year Change in AWS (3)

1Q04 5.7% 3.9% -21.7% - 1.4% 2Q04 3.6% 4.5% -14.0% - -0.5% 3Q04 4.4% 6.5% -5.9% - 0.9% 4Q04 0.9% 3.2% -5.9% - -1.4% 2004 3.7% 4.5% -7.9% - -2.0%

Year-Over-Year Change Comp Store Sales (2) (3)

Units 13 14 7 - 86 --------------------------------------------------------------------- 1Q04 5.7% 6.7% - - 4.2% 2Q04 3.6% 5.0% -13.0% - 2.5% 3Q04 4.4% 6.5% -1.7% - 3.6% 4Q04 0.9% 3.2% -1.1% - 2.0% 2004 3.7% 5.2% -2.1% - 3.0%

(1) Includes all restaurants opened in the period indicated.

(2) A unit becomes comparable in the eighteenth month of operation.

(3) The 53rd week of fiscal 2004 has been excluded for comparative purposes.

Pei Wei Asian Diner Supplemental Sales Information Year of Unit Opening (1)

2000 2001 2002 2003 2004 Total Units 1 4 11 17 20 53 --------------------------------------------------------------------- Sales (000)

1Q04 873 2,297 5,918 8,935 1,234 19,257 2Q04 864 2,203 5,750 8,758 4,816 22,391 3Q04 834 2,094 5,583 8,853 6,886 24,249 4Q04 945 2,332 6,151 9,486 10,661 29,575 2004 3,517 8,926 23,402 36,031 23,597 95,473

Average Weekly Sales (AWS)

1Q04 67,145 44,170 41,385 40,427 41,147 41,954 2Q04 66,490 42,368 40,210 39,628 43,388 41,466 3Q04 64,145 40,263 39,042 40,059 40,985 40,618 4Q04 67,526 41,649 39,943 39,857 41,002 40,963 2004 66,349 42,104 40,141 39,990 41,470 41,188

Year-Over-Year Change in AWS (3)

1Q04 1.7% -2.3% 4.1% -21.4% - -4.7% 2Q04 4.1% -0.3% 1.8% -23.2% - -6.5% 3Q04 3.9% -0.2% 1.2% -14.5% - -4.9% 4Q04 7.3% 2.6% 3.4% -0.9% - 1.3% 2004 4.2% -0.1% 2.6% -10.9% - -3.3%

Year-Over-Year Change Comp Store Sales (2) (3)

Units 1 4 11 8 - 24 --------------------------------------------------------------------- 1Q04 1.7% -2.3% 3.4% - - 1.6% 2Q04 4.1% -0.3% 1.8% -2.7% - 1.3% 3Q04 3.9% -0.2% 1.2% 0.5% - 1.0% 4Q04 7.3% 2.6% 3.4% 3.7% - 3.6% 2004 4.2% -0.1% 2.4% 2.1% - 2.0%

(1) Includes all restaurants opened in the period indicated.

(2) A unit becomes comparable in the eighteenth month of operation.

(3) The 53rd week of fiscal 2004 has been excluded for comparative purposes.

--30--KK/se*

CONTACT: P.F. Chang's China Bistro, Inc. Laura Cherry, 602-957-8986 (Media) laurac@pfchangs.com Kristina Cashman, 602-957-8986 (Investors) kristinac@pfchangs.com

KEYWORD: COLORADO ARIZONA TEXAS OREGON OKLAHOMA NEW JERSEY INDUSTRY KEYWORD: RESTAURANTS FOODS/BEVERAGES RETAIL EARNINGS SOURCE: P.F. Chang's China Bistro, Inc.

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