SCOTTSDALE, Ariz. (AP) -- There were fewer diners walking through the doors at P.F. Chang's and same store sale slid, pushing second-quarter net income down 29 percent, the restaurateur said Wednesday.
The casual dining company cut its full-year earnings and revenue outlook. Its stock slid $3.80, or 9.7 percent, to $35.45 before the market open.
P.F. Chang's China Bistro Inc. earned $9.1 million, or 40 cents per share, in the quarter compared with $12.8 million, or 55 cents per share, in the same period last year.
Analysts surveyed by FactSet forecast much higher earnings of 56 cents per share.
Revenue for the period ended July 3 edged down 1 percent to $311 million from $312.8 million on lower restaurant sales and a decline in revenue from restaurant licensing.
That missed Wall Street expectations of $313.2 million as well.
Revenue from its namesake restaurants open at least a year fell 2.5 percent, while the figure slipped 2.7 percent at its other notable brand, the Pei Wei Diner.
That is a key metric used to gauge a restaurant's health because it excludes the volatile results from locations opened or closed during the year.
P.F. Chang's, which is based in Scottsdale, Ariz., said it had raised prices at its namesake restaurants by 1 percent to 2 percent and enacted 2 percent to 3 percent price hikes at Pei Wei locations. Almost every business sector is testing how much of a price hike consumers will absorb.
The company said it expects labor costs will climb, and now predicts full-year earnings of $1.60 to $1.70 per share with revenue up about 1 percent. P.F. Chang's prior guidance was for earnings between $2.15 and $2.20 per share, with revenue rising about 3 percent to 4 percent.
Analysts expect fiscal 2011 earnings of $2.09 per share on revenue of $1.26 billion.
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