SCOTTSDALE Ariz. P.F. Chang’s China Bistro Inc. said Wednesday that third-quarter earnings would fall below projections because of lower-than-anticipated restaurant revenues and unexpected costs.
P.F. Chang’s, the Scottsdale-based operator of the 162-unit namesake casual-dining chain and the 137-unit quick-casual Pei Wei Asian Diner, reported revenues of $270.8 million for the third quarter ended Sept. 30, up 17 percent from the $231 million in revenues a year ago. However, the most recent results were still about $2.2 million short of the company’s expectations.
Third-quarter same-store sales at the China Bistro chain decreased 1.6 percent from the comparable period a year ago, despite price increases of between 2 percent to 3 percent. Same-store sales slipped 1 percent at Pei Wei.
The weak sales, along with unexpected increases in labor, repair, maintenance and supply costs, as well as the costs for an accelerated rollout of the new grill menu for the China Bistro chain, led the company to revise downwards its third-quarter projections. P.F. Chang’s now expects to record third-quarter profits of between 18 cents and 20 cents per share. The company’s previous forecast was 25 cents per share in profit, which is what it recorded in the year-ago third quarter.
Earnings also were affected by a fire at a restaurant in Nashville, Tenn., the company added. Full results will be reported Oct. 24.
For the third quarter, China Bistro restaurants accounted for $208.5 million of consolidated revenues and Pei Wei restaurants generated $61.7 million, the company reported. Taneko Japanese Tavern, an izakaya-style Japanese restaurant in Scottsdale, accounted for $600,000.
Monthly same-store sales results during the quarter included declines of 1.9 percent in July, 1 percent in August and 1.9 percent in September for the China Bistro concept. At Pei Wei, same-store sales slipped 0.8 percent in July, 0.7 percent in August and 1.4 percent in September.
During the third quarter, the company opened five China Bistro restaurants and 11 Pei Wei restaurants, it reported.
P.F. Chang's stock fell 2.81 percent on Wednesday to close at $29.41.