Positive traffic trends and a menu price hike contributed to a 10.1-percent increase in second quarter profit at P.F. Chang’s China Bistro Inc., the company said Wednesday.
For the quarter ended July 4, the operator of the P.F. Chang’s China Bistro casual-dining chain and fast-casual sister brand, Pei Wei Asian Diner, reported earnings of $12.8 million, or 55 cents per share, compared with $11.6 million, or 49 cents per share, in the second quarter a year ago.
Latest-quarter revenue rose 3.8 percent to $312.8 million, including $1.3 million from the company’s four licensed international locations and new line of licensed frozen food entrees available in grocery stores.
Same-store sales for the P.F. Chang’s China Bistro chain rose 0.1 percent, reflecting a 2.6-percent increase in traffic that was hurt by a 2.5-percent decline in average check. Officials noted, however, that the average ticket improved in May — with help from a 1-percent-to-2-percent increase in menu prices — as well as a year-over-year jump in high-dollar tickets.
At Pei Wei, same-store sales increased 3 percent for the quarter, including a 1.5-percent increase in traffic and a 1.5-percent increase in average ticket — also partly the result of a 1-percent menu price increase taken in April.
Two new bistro locations and one new Pei Wei are expected to open during the second half of the fiscal year, the company said. Earlier this month, the company also signed a development and licensing agreement with International Restaurant Services Inc. to develop four bistro locations in Puerto Rico over the next six years. The first is scheduled to open during the first half of fiscal 2012.
The company also plans to repurchase about $40 million in common shares under its current share repurchase authorization.
P.F. Chang’s China Bistro Inc. operates 366 restaurants, including 199 bistro locations and 167 Pei Wei units.
Contact Lisa Jennings at [email protected].
