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P.F. Chang's 4th-Q profit slips on Taneko sale

SCOTTSDALE Ariz. P.F. Chang’s China Bistro Inc., parent to the casual-dining namesake chain and the fast-casual Pei Wei Asian Diner concept, said its fourth-quarter profit fell about 20 percent from a year earlier, on an asset impairment charge from the pending sale of its one Taneko Japanese Tavern restaurant.

Net income for the quarter ended Dec. 30 declined to $7.0 million, or 28 cents per share, compared with $8.8 million, or 34 cents per share, in the previous year’s fourth quarter. The latest results included a $3.1 million, or 8 cents per share, asset impairment charge related to Taneko, which is being sold to Dallas restaurateur Jack Baum.

Income from continuing operations edged up to $9.3 million, or 37 cents per share, from $9.0 million, or 35 cents per share a year earlier. P.F. Chang’s previously said it expected a per-share profit from continuing operations of between 32 cents and 34 cents. The higher-than-expected result was aided mostly by a beneficial tax rate, the company said.

Revenue rose 16 percent to $291.9 million. As previously reported, same-store sales fell 1 percent at the Bistro chain and dropped 0.5 percent at Pei Wei. P.F. Chang’s said that starting this year it will no longer prerelease its revenue and same-store sales results, and instead include those figures only in its quarterly earnings report.

Earnings for all of fiscal 2007 dipped 4 percent to $32.1 million, or $1.24 per share, compared with $33.3 million, or $1.24 per share, a year ago. Annual sales rose to $1.09 billion from $936.9 million in 2006. Income from continuing operations rose to $35.2 million, or $1.36 per share, from $34.2 million, or $1.28 per share.

Offering its first look into the current year, P.F. Chang’s said it expected to earn between $1.32 a share and $1.38 a share from continuing operations, on sales growth of between 13 percent and 14 percent. The company also said it expects to open 17 Bistro restaurants and 25 Pei Wei restaurants.

At the end of December, it had 316 Bistro units and 144 Pei Wei units.

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