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| (Mark One) |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| R          | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|       | For the fiscal year ended December 27, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| OR         |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| £     | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|       | For the transition period from                                                                 to                                                           |

|   |   (Exact name of Registrant as specified in its charter) |   |
|--------|---------------------------------------------------------------|--------|

| Delaware                                                   | 62-1254388                           |
|------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of                            | (I.R.S. Employer Identification No.) |
| incorporation or organization)                             |                                 |
|                                                       |                                 |
| 6075 Poplar Ave. Suite 800 Memphis, TN                     | 38119                                |
| (Address of principal executive offices)                   | (Zip Code)                           |
| (901) 766-6400                                             |
| (Registrant’s telephone number, including area code) |

| Title of each class  | Name of each exchange on which registered  |
|---------------------------|-------------------------------------------------|

| Large accelerated filer£ | Accelerated filer£                       | Non-accelerated filerR | Smaller reporting company£ |
|-------------------------------|-----------------------------------------------|------------------------|---------------------------------|
|                          | (Do not check if a smaller reporting company) |

| Class: Common Stock, $.01 par value per share | Outstanding as of March 29, 2010: 10,820 shares |
|-----------------------------------------------|-------------------------------------------------|
| Documents incorporated by reference: None     |                                            |

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TABLE OF CONTENTS

| PART I                                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|
| Item 1. Business                                                                                                              | 3      |
| Item 1a. Risk Factors                                                                                                         | 9      |
| Item 1b. Unresolved Staff Comments                                                                                            | 18     |
| Item 2. Properties                                                                                                            | 19     |
| Item 3. Legal Proceedings                                                                                                     | 20     |
| Item 4. Reserved                                                                                                              | 20     |
| PART II                                                                                                                       |   |
| Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities | 21     |
| Item 6. Selected Financial Data                                                                                               | 22     |
| Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations                           | 23     |
| Item 7A. Quantitative and Qualitative Disclosures About Market Risk                                                           | 42     |
| Item 8. Financial Statements and Supplementary Data                                                                           | 42     |
| Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                  | 78     |
| Item 9A(T). Controls and Procedures                                                                                           | 78     |
| Item 9B. Other Information                                                                                                    | 79     |
| PART III                                                                                                                      |   |
| Item 10. Directors, Executive Officers and Corporate Governance                                                               | 80     |
| Item 11. Executive Compensation                                                                                               | 81     |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                       | 90     |
| Item 13. Certain Relationships and Related Transactions and Director Independence                                             | 91     |
| Item 14. Principal Accounting Fees And Services                                                                               | 92     |
| PART IV                                                                                                                       |   |
| Item 15. Exhibits and Financial Statement Schedules                                                                           | 93     |
| SIGNATURES                                                                                                                    | 95     |
| SCHEDULE II – Item 15(a)(2)                                                                                             | 96     |
| Ex-31.1 Section 302 Certification                                                                                             |   |
| Ex-31.2 Section 302 Certification                                                                                             |   |
| Ex-32.1 Section 906 Certification                                                                                             |   |
| Ex-32.2 Section 906 Certification                                                                                             |   |

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Item 1. Business

| ·   | Perkins & Marie Callender’s Holding Inc., which is a wholly-owned subsidiary of |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | P&MC’s Holding Corp, which is a wholly-owned subsidiary of |
|--------------------|----------------------------------------------------------------------|

| ·   | P&MC’s Real Estate Holding LLC, which is a wholly-owned subsidiary of |
|--------------------|---------------------------------------------------------------------------------|

| ·   | P&MC’s Holding LLC, which is principally owned by affiliates of Castle Harlan, Inc. (“Castle Harlan”). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

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|                                  |   | Perkins Restaurants |   |   | Marie Callender's Restaurants |   |
|---------------------------------------|--------|---------------------|--------|--------|-------------------------------|--------|
|                                  |   | Company-Operated    |   |   | Franchised                    |   |   | Company-Operated |   |   | Franchised |   |
|                                  |   |                |   |   |                          |   |   |   |   |   |   |   |
| Restaurants at December 31, 2006      |   |                | 155    |   |                          |   | 322 |   |   |   | 92 |   |   |   | 46 |   |
|                                  |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| New restaurants                       |   |                | 7      |   |                          |   | 8 |   |   |   | 0 |   |   |   | 0 |   |
| Restaurants acquired from franchisees |   |                | 3      |   |                          |   | (3) |   |   |   | 1 |   |   |   | (1) |   |
| Closed restaurants                    |   |                | (3)    |   |                          |   | (4) |   |   |   | (1) |   |   |   | (1) |   |
| Restaurants at December 30, 2007      |   |                | 162    |   |                          |   | 323 |   |   |   | 92 |   |   |   | 44 |   |
|                                  |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| New restaurants                       |   |                | 2      |   |                          |   | 2 |   |   |   | 0 |   |   |   | 1 |   |
| Closed restaurants                    |   |                | 0      |   |                          |   | (8) |   |   |   | (1) |   |   |   | (3 |   |
| Restaurants at December 28, 2008      |   |                | 164    |   |                          |   | 317 |   |   |   | 91 |   |   |   | 42 |   |
|                                  |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| New restaurants                       |   |                | 0      |   |                          |   | 1 |   |   |   | 0 |   |   |   | 0 |   |
| Restaurants acquired from franchisees |   |                | 0      |   |                          |   | 0 |   |   |   | 1 |   |   |   | (1) |   |
| Closed restaurants                    |   |                | (1)    |   |                          |   | (4) |   |   |   | 0 |   |   |   | (2) |   |
| Restaurants at December 27, 2009      |   |                | 163    |   |                          |   | 314 |   |   |   | 92 |   |   |   | 39 |   |

| # of        |   |   | Year-to-Date |              |      | # of        |   |   | Year-to-Date |   |
|-------------|--------|--------|--------------|-------------------|-----------|-------------|--------|--------|--------------|--------|
| Restaurants |   |   | Ended        |              |      | Restaurants |   |   | Ended        |   |
|        | (2009) |   |         | December 27, 2009 |      |        |   | (2008) |         |   | December 28, 2008 |   |
|        |   |   |         |              |      |        |   |   |         |   |   |   |
|        | 40     |   |         | $                 | 1,861,000 |        |   |   | 41           |   |   | $ | 1,926,000 |   |
|        | 27     |   |         |              | 1,420,000 |        |   |   | 27           |   |   |   | 1,452,000 |   |
|        | 21     |   |         |              | 1,427,000 |        |   |   | 21           |   |   |   | 1,500,000 |   |

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| # of        |   |   | Year-to-Date |              |    | # of        |   |   | Year-to-Date |   |
|-------------|--------|--------|--------------|-------------------|---------|-------------|--------|--------|--------------|--------|
| Restaurants |   |   | Ended        |              |    | Restaurants |   |   | Ended        |   |
|        | (2009) |   |         | December 27, 2009 |    |        |   | (2008) |         |   | December 28, 2008 |   |
|        |   |   |         |              |    |        |   |   |         |   |   |   |
|        | 4      |   |         | $                 | 371,000 |        |   |   | 5            |   |   | $ | 542,000 |   |
|        | 4      |   |         |              | 389,000 |        |   |   | 4            |   |   |   | 465,000 |   |
|        | 4      |   |         |              | 283,000 |        |   |   | 4            |   |   |   | 312,000 |   |

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Item 1a. Risk Factors

| ·   | make it more difficult for us to satisfy our obligations with respect to our indebtedness and our other financial obligations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | increase our vulnerability to general adverse economic and industry conditions; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures and other general corporate purposes; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | restrict us from making strategic acquisitions or exploiting business opportunities; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | place us at a competitive disadvantage compared to our competitors that have less debt; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | limit our ability to borrow additional funds. |
|--------------------|-----------------------------------------------|

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|   | • | find quality locations; |
|--------|---------|-------------------------|

|   | • | reach acceptable agreements regarding the lease or purchase of locations; |
|--------|---------|---------------------------------------------------------------------------|

|   | • | comply with applicable zoning, land use and environmental regulations; |
|--------|---------|------------------------------------------------------------------------|

|   | • | raise or have available an adequate amount of money for construction and opening costs; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | timely hire, train and retain the skilled management and other employees necessary to meet staffing needs; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | obtain, for an acceptable cost, required permits and approvals; |
|--------|---------|-----------------------------------------------------------------|

|   | • | efficiently manage the amount of time and money used to build and open each new restaurant; and |
|--------|---------|-------------------------------------------------------------------------------------------------|
|   | • | general economic conditions. |
|--------|---------|------------------------------|

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Item 1b. Unresolved Staff Comments

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Item 2. Properties

|           |   | Perkins Restaurants |   |   | Marie Callender's Restaurants |   |
|----------------|--------|---------------------|--------|--------|-------------------------------|--------|
|           |   | Company-Operated    |   |   | Franchise                     |   |   | Total |   |   | Company-Operated |   |   | Franchise |   |   | Total |   |
|           |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arizona        |   |                | -      |   |                          |   | 1 |   |   |   | 1 |   |   |   | 7 |   |   |   | - |   |   |   | 7 |   |
| Arkansas       |   |                | -      |   |                          |   | 2 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| California     |   |                | -      |   |                          |   | - |   |   |   | - |   |   |   | 62 |   |   |   | 33 |   |   |   | 95 |   |
| Colorado       |   |                | 8      |   |                          |   | 4 |   |   |   | 12 |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Delaware       |   |                | -      |   |                          |   | 1 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Florida        |   |                | 44     |   |                          |   | 15 |   |   |   | 59 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Georgia        |   |                | -      |   |                          |   | 1 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Idaho          |   |                | -      |   |                          |   | 8 |   |   |   | 8 |   |   |   | 1 |   |   |   | - |   |   |   | 1 |   |
| Illinois       |   |                | 7      |   |                          |   | - |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Indiana        |   |                | -      |   |                          |   | 5 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Iowa           |   |                | 16     |   |                          |   | 4 |   |   |   | 20 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Kansas         |   |                | 3      |   |                          |   | 4 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Kentucky       |   |                | -      |   |                          |   | 3 |   |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Maryland       |   |                | -      |   |                          |   | 2 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Michigan       |   |                | 7      |   |                          |   | 3 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Minnesota      |   |                | 39     |   |                          |   | 37 |   |   |   | 76 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Missouri       |   |                | 7      |   |                          |   | 1 |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Montana        |   |                | -      |   |                          |   | 9 |   |   |   | 9 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Nebraska       |   |                | -      |   |                          |   | 9 |   |   |   | 9 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Nevada         |   |                | -      |   |                          |   | - |   |   |   | - |   |   |   | 4 |   |   |   | 3 |   |   |   | 7 |   |
| New Jersey     |   |                | -      |   |                          |   | 17 |   |   |   | 17 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| New York       |   |                | -      |   |                          |   | 15 |   |   |   | 15 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| North Carolina |   |                | -      |   |                          |   | 2 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| North Dakota   |   |                | 4      |   |                          |   | 4 |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Ohio           |   |                | -      |   |                          |   | 36 |   |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oklahoma       |   |                | 2      |   |                          |   | - |   |   |   | 2 |   |   |   | 2 |   |   |   | - |   |   |   | 2 |   |
| Oregon         |   |                | -      |   |                          |   | - |   |   |   | - |   |   |   | 4 |   |   |   | 1 |   |   |   | 5 |   |
| Pennsylvania   |   |                | 6      |   |                          |   | 47 |   |   |   | 53 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| South Carolina |   |                | -      |   |                          |   | 4 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| South Dakota   |   |                | -      |   |                          |   | 11 |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Tennessee      |   |                | 4      |   |                          |   | 8 |   |   |   | 12 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Texas          |   |                | -      |   |                          |   | - |   |   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | 4 |   |
| Utah           |   |                | -      |   |                          |   | - |   |   |   | - |   |   |   | 5 |   |   |   | - |   |   |   | 5 |   |
| Virginia       |   |                | -      |   |                          |   | 4 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Washington     |   |                | -      |   |                          |   | 6 |   |   |   | 6 |   |   |   | 3 |   |   |   | - |   |   |   | 3 |   |
| West Virginia  |   |                | -      |   |                          |   | 2 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Wisconsin      |   |                | 16     |   |                          |   | 27 |   |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Wyoming        |   |                | -      |   |                          |   | 5 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Canada         |   |                | -      |   |                          |   | 17 |   |   |   | 17 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Mexico         |   |                | -      |   |                          |   | - |   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Total          |   |                | 163    |   |                          |   | 314 |   |   |   | 477 |   |   |   | 92 |   |   |   | 39 |   |   |   | 131 |   |

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|                                                |   | Number of Properties (1) |    |
|-----------------------------------------------------|--------|--------------------------|---------|
| Use                                                 |   | Owned                    |    |   | Leased |   |   | Total |   |
| Offices and Manufacturing Facilities (2)            |   |                     | — |   |   |   | 8 |   |   |   | 8 |   |
| Perkins Restaurant and Bakery (3)                   |   |                     | — |   |   |   | 163 |   |   |   | 163 |   |
| Marie Callender’s Restaurant and Bakery (4,5) |   |                     | — |   |   |   | 92 |   |   |   | 92 |   |

| (1) | In addition to the properties noted in the schedule above, we lease fifteen properties and own two other properties which are vacant or leased to others. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Our principal office is located in Memphis, Tennessee, and currently comprises approximately 43,000 square feet under a lease expiring on May 31, 2013, subject to a renewal by us for a maximum of 60 months. We also lease an office which comprises approximately 6,300 square feet in Mission Viejo, California, with a lease term through April 30, 2013, and no renewal option.  In addition to the two office locations, we lease two properties in Cincinnati, Ohio, consisting of 36,000 square feet and 120,000 square feet, and lease one property in Corona, California, consisting of 29,600 square feet, for use as manufacturing facilities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The average term of the remaining leases is approximately 11 years, excluding renewal options. The longest lease term will mature in approximately 19 years and the shortest lease term will mature in less than one year, excluding renewal options. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes two Callender’s Grill restaurants and the East Side Mario’s restaurant. |
|-----|----------------------------------------------------------------------------------------------|

| (5) | The average term of the remaining leases is approximately five years, excluding renewal options. The longest lease term will mature in approximately 32 years and the shortest lease term will mature in less than one year, excluding renewal options. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 3. Legal Proceedings

Item 4. Reserved

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Item 5. Market for Registrant’s Common Equity and Related Stockholder
Matters and Issuer Purchases of Equity Securities

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Item 6. Selected Financial Data

|                                                                         |   | 2009   |          |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| Statement of Operations Data:                                                |   |   |          |   |   |   |    |   |   |   |    |   |   |   |    |
| Revenues                                                                     |   | $      | 536,068       |   |   |   | 581,970 |   |   |   | 587,886 |   |   |   | 594,190 |   |   |   | 321,473 |   |
| Net loss                                                                     |   |   | (36,219       | )      |   |   | (52,953 | )      |   |   | (16,335 | )      |   |   | (9,372  | ) |   |   | (15,231 | ) |
| Balance Sheet Data (at year end):                                            |   |   |          |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total assets                                                                 |   |   | 291,641       |   |   |   | 323,508 |   |   |   | 362,942 |   |   |   | 346,845 |   |   |   | 346,276 |   |
| Long-term debt and capital leaseobligations (a)                              |   |   |  337,096 |   |   |   | 330,249 |   |   |   | 309,996 |   |   |   | 292,628 |   |   |   | 300,077 |   |
| Statistical Data:                                                            |   |   |          |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Full-service restaurants in operation at end of year:                        |   |   |          |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Company-operated Perkins                                                     |   |   | 163           |   |   |   | 164     |   |   |   | 162     |   |   |   | 155     |   |   |   | 151 |   |
| Franchised Perkins (b)                                                       |   |   | 314           |   |   |   | 317     |   |   |   | 323     |   |   |   | 322     |   |   |   | 331 |   |
| Total Perkins                                                                |   |   | 477           |   |   |   | 481     |   |   |   | 485     |   |   |   | 477     |   |   |   | 482 |   |
|                                                                         |   |   |          |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Company-operated Marie Callender’s                                     |   |   | 91            |   |   |   | 90      |   |   |   | 91      |   |   |   | 91      |   |   |   | 92 |   |
| Company-operated East Side Mario’s                                     |   |   | 1             |   |   |   | 1       |   |   |   | 1       |   |   |   | 1       |   |   |   | 1 |   |
| Franchised Marie Callender’s                                           |   |   | 39            |   |   |   | 42      |   |   |   | 44      |   |   |   | 46      |   |   |   | 47 |   |
| Total Marie Callender’s                                                |   |   | 131           |   |   |   | 133     |   |   |   | 136     |   |   |   | 138     |   |   |   | 140 |   |
| Average annual sales per Company-operated Perkins restaurant                 |   | $      |  1,715   |   |   |   | 1,840   |   |   |   | 1,890   |   |   |   | 1,944   |   |   |   | 1,866 |   |
| Average annual royalties per franchised Perkins restaurant                   |   |   |  60      |   |   |   | 62      |   |   |   | 64      |   |   |   | 66      |   |   |   | 64 |   |
| Average annual sales per Company-operated Marie Callender’s restaurant |   |   |  2,079   |   |   |   | 2,217   |   |   |   | 2,339   |   |   |   | 2,369   |   |   |   | 2,298 |   |
| Average annual royalties per franchised Marie Callender’s restaurant   |   |   |  86      |   |   |   | 98      |   |   |   | 102     |   |   |   | 105     |   |   |   | 107 |   |

| (a) | Excluding current maturities of $503, $382, $9,464, $1,706 and $3,311, respectively. |
|-----|--------------------------------------------------------------------------------------|

| (b) | Excludes one franchised Perkins Express. |
|-----|------------------------------------------|

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations

|   | • | general economic conditions, consumer preferences and demographic patterns, either nationally or in particular regions in which we operate; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our substantial indebtedness; |
|--------|---------|-------------------------------|

|   | • | our liquidity and capital resources; |
|--------|---------|--------------------------------------|

|   | • | competitive pressures and trends in the restaurant industry; |
|--------|---------|--------------------------------------------------------------|

|   | • | prevailing prices and availability of food, labor, raw materials, supplies and energy; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | a failure to obtain timely deliveries from our suppliers or other supplier issues; |
|--------|---------|------------------------------------------------------------------------------------|

|   | • | our ability to successfully implement our business strategy; |
|--------|---------|--------------------------------------------------------------|

|   | • | relationships with franchisees and the financial health of franchisees; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | legal proceedings and regulatory matters; and |
|--------|---------|-----------------------------------------------|

|   | • | our development and expansion plans. |
|--------|---------|--------------------------------------|

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|                   |   | Years  |          |
|------------------------|--------|--------|---------------|
| Land improvements      |   |   | 3 — 20  |   |
| Buildings              |   |   | 20 — 30 |   |
| Leasehold improvements |   |   | 3 — 20  |   |
| Equipment              |   |   | 1 — 7   |   |

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|                  |   | Percentage of Total Revenues |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | Year Ended                   |   |   | Year Ended |   |   | Year Ended |   |
|                  |   | December 27, 2009            |   |   | December 28, 2008 |   |   | December 30, 2007 |   |
|                  |   |                         |   |   |   |   |   |   |   |
| Restaurant operations |   |                         | 87.7   | % |   |   | 86.5 | % |   |   | 86.9 | % |
| Franchise operations  |   |                         | 4.2    | % |   |   | 4.1 | % |   |   | 4.4 | % |
| Foxtail               |   |                         | 7.0    | % |   |   | 8.5 | % |   |   | 7.8 | % |
| Other                 |   |                         | 1.1    | % |   |   | 0.9 | % |   |   | 0.9 | % |
| Total revenues        |   |                         | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |

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|                        |   | Consolidated Results |    |   | Restaurant Operations |   |    | Franchise Operations |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------------|--------|---------|----------------------|--------|
|                        |   | 2009                 |    |   | 2008                  |   |    | 2007                 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 528,815 |   |                  |   | 572,550 |                 |   |   | 576,816 |   |   |   | 470,346 |   |   |   | 503,242 |   |   |   | 510,863 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Franchise and other revenue | 28,305 |                 |    |   | 29,508                |   |    |                 | 30,896 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,532 |   |   |   | 24,141 |   |   |   | 25,982 |   |
| Intersegment revenue        |   |                 | (21,052 | )      |                  |   | (20,088 | )                    |   |   | (19,826 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total revenues              |   |                 | 536,068 |   |                  |   | 581,970 |                 |   |   | 587,886 |   |   |   | 470,346 |   |   |   | 503,242 |   |   |   | 510,863 |   |   |   | 22,532 |   |   |   | 24,141 |   |   |   | 25,982 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 26.0    | %      |                  |   | 29.2    | %                    |   |   | 28.5 | % |   |   | 25.4 | % |   |   | 26.9 | % |   |   | 27.1 | % |   |   | n/a |   |   |   | n/a |   |   |   | n/a |   |
| Labor and benefits          |   |                 | 33.1    | %      |                  |   | 32.4    | %                    |   |   | 32.2 | % |   |   | 36.1 | % |   |   | 35.5 | % |   |   | 35.3 | % |   |   | n/a |   |   |   | n/a |   |   |   | n/a |   |
| Operating expenses          |   |                 | 27.2    | %      |                  |   | 26.2    | %                    |   |   | 25.4 | % |   |   | 29.3 | % |   |   | 28.3 | % |   |   | 27.6 | % |   |   | 8.3 | % |   |   | 8.3 | % |   |   | 8.5 | % |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | (36,219 | )      |                  |   | (52,953 | )                    |   |   | (16,335 | ) |   |   | 24,551 |   |   |   | 26,806 |   |   |   | 32,459 |   |   |   | 20,665 |   |   |   | 3,603 |   |   |   | 23,774 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | Foxtail (a)          |    |   | Other (b)             |   |    |                 |   |
|                        |   |                 | 2009    |   |                  |   | 2008    |                 |   |   | 2007 |   |   |   | 2009 |   |   |   | 2008 |   |   |   | 2007 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 58,469  |   |                  |   | 69,308  |                 |   |   | 65,953 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Franchise and other revenue | -      |                 |    |   | -                     |   |    |                 | -      |   |   |   | 5,773 |   |   |   | 5,367 |   |   |   | 4,914 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment revenue        |   |                 | (21,052 | )      |                  |   | (20,088 | )                    |   |   | (19,826 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues              |   |                 | 37,417  |   |                  |   | 49,220  |                 |   |   | 46,127 |   |   |   | 5,773 |   |   |   | 5,367 |   |   |   | 4,914 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 56.8    | %      |                  |   | 65.9    | %                    |   |   | 60.9 | % |   |   | n/a |   |   |   | n/a |   |   |   | n/a |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Labor and benefits          |   |                 | 12.6    | %      |                  |   | 13.5    | %                    |   |   | 13.1 | % |   |   | n/a |   |   |   | n/a |   |   |   | n/a |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses          |   |                 | 10.5    | %      |                  |   | 11.0    | %                    |   |   | 9.7 | % |   |   | n/a |   |   |   | n/a |   |   |   | n/a |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | 4,162   |   |                  |   | (4,500  | )                    |   |   | 3,687 |   |   |   | (85,597 | ) |   |   | (78,862 | ) |   |   | (76,255 | ) |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | The percentages for food cost, labor and benefits, and operating expenses, as presented above, represent manufacturing costs at Foxtail. Foxtail’s selling, general and administrative expenses are included in general and administrative expenses in the Consolidated Statements of Operations and in the Foxtail segment profit or loss presented above. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Licensing revenue of $5,505,000, $5,125,000 and $4,564,000 for fiscal 2009, 2008 and 2007, respectively, is included in the other segment revenues. The other segment loss includes corporate general and administrative expenses, interest expense and other non-operational expenses. For details of the other segment loss, see Note 16, “Segment Reporting” in the Notes to Consolidated Financial Statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1. | The Company would, at the time of such Restricted Payments and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional indebtedness pursuant to the fixed charge coverage ratio tests as defined in the indenture. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 2. | Such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company after September 21, 2005, is less than the sum, without duplication, of (i) 50% of the consolidated net income of the Company for the period from the beginning of the first full fiscal quarter commencing after the date of the indenture to the end of the Company’s most recent ended fiscal quarter for which internal financial statements are available at the time of the Restricted Payment; (ii) 100% of the aggregate net proceeds received by the Company since the date of the indenture as a contribution to its equity capital or from the sale of equity interests of the Company or from the conversion of interests or debt securities that have been converted to equity interests; and (iii) to the extent that any Restricted Investment, as defined, that was made after the date of the indenture is sold for cash, the lesser of (a) the cash return of capital or (b) the aggregate amount of such restricted investment that was treated as a Restricted Payment when made. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                             |   | Year Ended        |   |   | Year Ended        |   |    | Year Ended        |   |
|-------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|---------|-------------------|--------|
|                                                  |   | December 27, 2009 |   |   | December 28, 2008 |   |    | December 30, 2007 |   |
| Cash flows provided by (used in) operating activities |   | $                 | 621    |   |              |   | (9,489  | )                 |   |   | 15,479 |   |
| Cash flows used in investing activities               |   |              | (8,239 | )      |              |   | (17,649 | )                 |   |   | (31,526 | ) |
| Cash flows provided by financing activities           |   |              | 7,293  |   |              |   | 12,719  |              |   |   | 26,010 |   |

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|                                                              |   | Year Ended        |   |   | Year Ended        |   |   | Year Ended        |   |
|-------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                                         |   | December 27, 2009 |   |   | December 28, 2008 |   |   | December 30, 2007 |   |
| New restaurants (including restaurants acquired from franchisees) |   | $                 | 155    |   |              |   | 2,302  |              |   |   | 15,255 |   |
| Restaurant improvements                                           |   |              | 5,876  |   |              |   | 6,650  |              |   |   | 8,675 |   |
| Restaurant remodeling and reimaging                               |   |              | 1,421  |   |              |   | 3,165  |              |   |   | 4,920 |   |
| Manufacturing plant improvements                                  |   |              | 727    |   |              |   | 4,710  |              |   |   | 1,476 |   |
| Other                                                             |   |              | 554    |   |              |   | 1,509  |              |   |   | 1,221 |   |
| Total capital expenditures                                        |   | $                 | 8,733  |   |              |   | 18,336 |              |   |   | 31,547 |   |

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|                     |   | Fiscal2010 |    |   | Fiscal2011 |   |    | Fiscal2012 |   |   | Fiscal2013 |   |   | Fiscal2014 |    |   | Thereafter |   |    | Total  |   |
|-------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|--------|------------|--------|--------|------------|---------|--------|------------|--------|---------|--------|--------|
| Contractual Obligations (1)   |   |       |    |   |       |   |    |       |   |   |       |   |   |       |    |   |       |   |    |   |   |
| 10% Senior Notes              |   |       | — |   |       |   | — |       |   |   | —    |   |   |       | 190,000 |   |       |   | — |   |   |   | — |   |   |   | 190,000 |   |
| Secured Notes                 |   |       | — |   |       |   | — |       |   |   | —    |   |   |       | 132,000 |   |       |   | — |   |   |   | — |   |   |   | 132,000 |   |
| Revolver                      |   |       | — |   |       |   | — |       |   |   | —    |   |   |       | 11,171  |   |       |   | — |   |   |   | — |   |   |   | 11,171 |   |
| Capital lease obligations     |   |       | 1,581   |   |       |   | 1,406   |       |   |   | 1,374      |   |   |       | 1,381   |   |       |   | 1,403   |   |   |   | 16,178 |   |   |   | 23,323 |   |
| Operating leases              |   |       | 36,631  |   |       |   | 34,266  |       |   |   | 32,578     |   |   |       | 29,919  |   |       |   | 27,308  |   |   |   | 229,667 |   |   |   | 390,369 |   |
| Interest on indebtedness (2)  |   |       | 38,148  |   |       |   | 38,148  |       |   |   | 38,148     |   |   |       | 23,601  |   |       |   | — |   |   |   | — |   |   |   | 138,045 |   |
| Purchase commitments (3)      |   |       | 47,546  |   |       |   | 1,581   |       |   |   | 730        |   |   |       | 449     |   |       |   | 449     |   |   |   | 898 |   |   |   | 51,653 |   |
| Management fee (4)            |   |       | — |   |       |   | — |       |   |   | —    |   |   |       | 22,524  |   |       |   | — |   |   |   | — |   |   |   | 22,524 |   |
| Total contractual obligations |   | $          | 123,906 |   |       |   | 75,401  |       |   |   | 72,830     |   |   |       | 411,045 |   |       |   | 29,160  |   |   |   | 246,743 |   |   |   | 959,085 |   |

| (1) | In addition to the contractual obligations disclosed in this table, we have unrecognized tax benefits with respect to which, based on uncertainties associated with the items, we are unable to make reasonably reliable estimates of the period of potential cash settlements, if any, with taxing authorities. (See Note 10 of the Notes to our Consolidated Financial Statements). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents interest expense using the interest rate of 10.0% on the $190,000,000 of 10% Senior Notes, 14.0% on the $132,000,000 of Secured Notes and 8.25% on the outstanding balance of $11,171,000 under the Revolver at December 27, 2009. Interest obligations exclude interest on capital lease obligations and fees on any letters of credit that may be issued under our new credit agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Primarily represents commitments to purchase food products for the restaurant and manufacturing segments. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (4) | The Company is obligated for management fees due to Castle Harlan; however, as long as the Company’s current debt agreements are in place, the Company is limited as to the amount that can be paid each year.  As of December 27, 2009, $10,383,000 of past due management fees were accrued in other liabilities and fees will continue to accrue quarterly at an annual rate of 3% of equity contributed by Castle Harlan and affiliates. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Item 8. Financial Statements and Supplementary Data

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|                                                |   | Year Ended   |    |   | Year Ended   |   |    | Year Ended   |   |
|-----------------------------------------------------|--------|--------------|---------|--------|--------------|--------|---------|--------------|--------|
|                                                |   | December 27, |    |   | December 28, |   |    | December 30, |   |
|                                                |   | 2009         |    |   | 2008         |   |    | 2007         |   |
| REVENUES:                                           |   |         |    |   |         |   |    |         |   |
| Food sales                                          |   | $            | 507,763 |   |         |   | 552,462 |         |   |   | 556,990 |   |
| Franchise and other revenue                         |   |         | 28,305  |   |         |   | 29,508  |         |   |   | 30,896 |   |
|    Total revenues                    |   |         | 536,068 |   |         |   | 581,970 |         |   |   | 587,886 |   |
| COSTS AND EXPENSES:                                 |   |         |    |   |         |   |    |         |   |   |   |   |
| Cost of sales (excluding depreciation shown below): |   |         |    |   |         |   |    |         |   |
|     Food cost                   |   |         | 131,765 |   |         |   | 161,103 |         |   |   | 158,708 |   |
|     Labor and benefits          |   |         | 177,672 |   |         |   | 188,431 |         |   |   | 189,307 |   |
|     Operating expenses          |   |         | 145,630 |   |         |   | 152,260 |         |   |   | 149,437 |   |
| General and administrative                          |   |         | 46,153  |   |         |   | 47,829  |         |   |   | 44,874 |   |
| Transaction costs                                   |   |         | -       |   |         |   | -       |         |   |   | 1,013 |   |
| Depreciation and amortization                       |   |         | 24,041  |   |         |   | 24,699  |         |   |   | 24,822 |   |
| Interest, net                                       |   |         | 44,120  |   |         |   | 36,689  |         |   |   | 31,180 |   |
| Asset impairments and closed store expenses         |   |         | 5,997   |   |         |   | 1,797   |         |   |   | 2,463 |   |
| Goodwill impairment                                 |   |         | -       |   |         |   | 20,202  |         |   |   | - |   |
| Loss on extinguishments of debt                     |   |         | -       |   |         |   | 2,952   |         |   |   | - |   |
| Other, net                                          |   |         | (3,460  | )      |         |   | 446     |         |   |   | 228 |   |
|     Total costs and expenses    |   |         | 571,918 |   |         |   | 636,408 |         |   |   | 602,032 |   |
| Loss before income taxes                            |   |         | (35,850 | )      |         |   | (54,438 | )            |   |   | (14,146 | ) |
| Benefit from (provision for) income taxes           |   |         | (171    | )      |         |   | 1,769   |         |   |   | (1,482 | ) |
| Net loss                                            |   |         | (36,021 | )      |         |   | (52,669 | )            |   |   | (15,628 | ) |
| Less: net earnings attributable to                  |   |         |    |   |         |   |    |         |   |   |   |   |
|     non-controlling interests   |   |         | 198     |   |         |   | 284     |         |   |   | 707 |   |
| Net loss attributable to Perkins & Marie        |   |         |    |   |         |   |    |         |   |   |   |   |
|     Callender's Inc.            |   | $            | (36,219 | )      |         |   | (52,953 | )            |   |   | (16,335 | ) |

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|                                                                                                                                                               |   | December 27, |     |   | December 28, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|--------|--------------|--------|
|                                                                                                                                                               |   | 2009         |     |   | 2008         |   |
| ASSETS                                                                                                                                                             |   |         |     |   |         |   |
| CURRENT ASSETS:                                                                                                                                                    |   |         |     |   |         |   |
| Cash and cash equivalents                                                                                                                                          |   | $            | 4,288    |   |         |   | 4,613 |   |
| Restricted cash                                                                                                                                                    |   |         | 8,110    |   |         |   | 10,140 |   |
| Receivables, less allowances for doubtful accounts of $829    and $954 in 2009 and 2008, respectively                                          |   |         | 18,125   |   |         |   | 21,386 |   |
| Inventories                                                                                                                                                        |   |         | 11,062   |   |         |   | 12,300 |   |
| Prepaid expenses and other current assets                                                                                                                          |   |         | 1,864    |   |         |   | 2,996 |   |
|      Total current assets                                                                                                                 |   |         | 43,449   |   |         |   | 51,435 |   |
|                                                                                                                                                               |   |         |     |   |         |   |   |   |
| PROPERTY AND EQUIPMENT, net of accumulated   depreciation and amortization of $156,898 and $150,056 in   2009 and 2008, respectively |   |         | 75,219   |   |         |   | 93,500 |   |
| INVESTMENT IN UNCONSOLIDATED PARTNERSHIP                                                                                                                           |   |         | 50       |   |         |   | 48 |   |
| GOODWILL                                                                                                                                                           |   |         | 9,836    |   |         |   | 9,836 |   |
| INTANGIBLE ASSETS, net of accumulated amortization of   $20,179 and $19,963 in 2009 and 2008, respectively                                          |   |         | 147,013  |   |         |   | 150,847 |   |
| OTHER ASSETS                                                                                                                                                       |   |         | 16,074   |   |         |   | 17,842 |   |
| TOTAL ASSETS                                                                                                                                                       |   | $            | 291,641  |   |         |   | 323,508 |   |
|                                                                                                                                                               |   |         |     |   |         |   |   |   |
|  LIABILITIES AND DEFICIT                                                                                                                                      |   |         |     |   |         |   |   |   |
|                                                                                                                                                               |   |         |     |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                               |   |         |     |   |         |   |   |   |
| Accounts payable                                                                                                                                                   |   |         | 14,657   |   |         |   | 18,295 |   |
| Accrued expenses                                                                                                                                                   |   |         | 41,605   |   |         |   | 47,040 |   |
| Franchise advertising contributions                                                                                                                                |   |         | 4,327    |   |         |   | 5,316 |   |
| Current maturities of long-term debt and capital lease obligations                                                                                                 |   |         | 503      |   |         |   | 382 |   |
|      Total current liabilities                                                                                                            |   |         | 61,092   |   |         |   | 71,033 |   |
|                                                                                                                                                               |   |         |     |   |         |   |   |   |
| LONG-TERM DEBT, less current maturities                                                                                                                            |   |         | 326,042  |   |         |   | 316,534 |   |
| CAPITAL LEASE OBLIGATIONS, less current maturities                                                                                                                 |   |         | 11,054   |   |         |   | 13,715 |   |
| DEFERRED RENT                                                                                                                                                      |   |         | 17,092   |   |         |   | 15,343 |   |
| OTHER LIABILITIES                                                                                                                                                  |   |         | 22,277   |   |         |   | 17,741 |   |
|                                                                                                                                                               |   |         |     |   |         |   |   |   |
| DEFICIT:                                                                                                                                                           |   |         |     |   |         |   |   |   |
| Common stock, $.01 par value; 100,000 shares authorized;                                                                                                           |   |         |     |   |         |   |   |   |
|      10,820 issued and outstanding                                                                                                        |   |         | 1        |   |         |   | 1 |   |
| Additional paid-in capital                                                                                                                                         |   |         | 150,870  |   |         |   | 149,851 |   |
| Accumulated other comprehensive income (loss)                                                                                                                      |   |         | 45       |   |         |   | (4 | ) |
| Accumulated deficit                                                                                                                                                |   |         | (297,140 | )      |         |   | (260,921 | ) |
|      Total PMCI stockholder's deficit                                                                                                     |   |         | (146,224 | )      |         |   | (111,073 | ) |
| Noncontrolling interests                                                                                                                                           |   |         | 308      |   |         |   | 215 |   |
|      Total deficit                                                                                                                        |   |         | (145,916 | )      |         |   | (110,858 | ) |
| TOTAL LIABILITIES AND DEFICIT                                                                                                                                      |   | $            | 291,641  |   |         |   | 323,508 |   |

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|                                                                  |   | Year Ended   |    |   | Year Ended   |   |     | Year Ended   |   |
|-----------------------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|----------|--------------|--------|
|                                                                  |   | December 27, |    |   | December 28, |   |     | December 30, |   |
|                                                                  |   | 2009         |    |   | 2008         |   |     | 2007         |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                 |   |         |    |   |         |   |     |         |   |
| Net loss                                                              |   | $            | (36,021 | )      |         |   | (52,669  | )            |   |   | (15,628 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in)   |   |         |    |   |         |   |     |         |   |   |   |   |
|  operating activities:                                           |   |         |    |   |         |   |     |         |   |   |   |   |
|   Depreciation and amortization                             |   |         | 24,041  |   |         |   | 24,699   |         |   |   | 24,822 |   |
|   Asset impairments                                         |   |         | 4,476   |   |         |   | 1,292    |         |   |   | 2,237 |   |
|   Amortization of debt discount                             |   |         | 1,540   |   |         |   | 647      |         |   |   | 324 |   |
|   Other non-cash income and expense items                   |   |         | (2,475  | )      |         |   | (12      | )            |   |   | 333 |   |
|   Loss on disposition of assets                             |   |         | 1,521   |   |         |   | 505      |         |   |   | 226 |   |
|   Goodwill impairment                                       |   |         | -       |   |         |   | 20,202   |         |   |   | - |   |
|   Loss on extinguishment of debt                            |   |         | -       |   |         |   | 2,952    |         |   |   | - |   |
|   Equity in net (income) loss of unconsolidated partnership |   |         | (2      | )      |         |   | 5        |         |   |   | 82 |   |
|   Net changes in operating assets and liabilities           |   |         | 7,541   |   |         |   | (7,110   | )            |   |   | 3,083 |   |
|   Total adjustments                                         |   |         | 36,642  |   |         |   | 43,180   |         |   |   | 31,107 |   |
| Net cash provided by (used in) operating activities                   |   |         | 621     |   |         |   | (9,489   | )            |   |   | 15,479 |   |
|                                                                  |   |         |    |   |         |   |     |         |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                 |   |         |    |   |         |   |     |         |   |   |   |   |
| Purchases of property and equipment                                   |   |         | (8,733  | )      |         |   | (18,336  | )            |   |   | (31,547 | ) |
| Proceeds from sale of assets                                          |   |         | 494     |   |         |   | 687      |         |   |   | 21 |   |
| Net cash used in investing activities                                 |   |         | (8,239  | )      |         |   | (17,649  | )            |   |   | (31,526 | ) |
|                                                                  |   |         |    |   |         |   |     |         |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                 |   |         |    |   |         |   |     |         |   |   |   |   |
| Proceeds from revolving credit facilities                             |   |         | 31,778  |   |         |   | 84,848   |         |   |   | 75,100 |   |
| Repayment of revolving credit facilities                              |   |         | (23,791 | )      |         |   | (101,664 | )            |   |   | (55,100 | ) |
| Proceeds from Secured Notes, net of $7,537 discount                   |   |         | -       |   |         |   | 124,463  |         |   |   | - |   |
| Repayment of Term Loan                                                |   |         | -       |   |         |   | (98,750  | )            |   |   | (750 | ) |
| Repayment of capital lease obligations                                |   |         | (429    | )      |         |   | (413     | )            |   |   | (702 | ) |
| Proceeds from (repayment of) other debt                               |   |         | (18     | )      |         |   | (18      | )            |   |   | 82 |   |
| Debt financing costs                                                  |   |         | (142    | )      |         |   | (9,559   | )            |   |   | - |   |
| Lessor financing of new restaurants                                   |   |         | -       |   |         |   | 2,286    |         |   |   | 6,107 |   |
| Distributions to noncontrolling interest holders                      |   |         | (105    | )      |         |   | (402     | )            |   |   | (519 | ) |
| Capital contributions                                                 |   |         | -       |   |         |   | 12,500   |         |   |   | 1,792 |   |
| Repurchase of equity ownership units in P&MC's Holding LLC        |   |         | -       |   |         |   | (572     | )            |   |   | - |   |
| Net cash provided by financing activities                             |   |         | 7,293   |   |         |   | 12,719   |         |   |   | 26,010 |   |
|                                                                  |   |         |    |   |         |   |     |         |   |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                  |   |         | (325    | )      |         |   | (14,419  | )            |   |   | 9,963 |   |
|                                                                  |   |         |    |   |         |   |     |         |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                            |   |         |    |   |         |   |     |         |   |   |   |   |
|   Balance, beginning of period                              |   |         | 4,613   |   |         |   | 19,032   |         |   |   | 9,069 |   |
|   Balance, end of period                                    |   | $            | 4,288   |   |         |   | 4,613    |         |   |   | 19,032 |   |

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|                                                             |   |   |   |   |       |   |    |        |   |   | Accumulated   |   |   |          |   |   |           |   |     |    |   |
|------------------------------------------------------------------|--------|--------|--------|--------|------------|--------|---------|-------------|--------|--------|---------------|--------|--------|---------------|--------|--------|----------------|--------|----------|---------|--------|
|                                                             |   |   |   |   | Additional |   |    |        |   |   | Other         |   |   | Total PMCI    |   |   |           |   |     |    |   |
|                                                             |   | Common |   |   | Paid-in    |   |    | Accumulated |   |   | Comprehensive |   |   | Stockholder's |   |   | Noncontrolling |   |     | Total   |   |
|                                                             |   | Stock  |   |   | Capital    |   |    | Deficit     |   |   | Income (Loss) |   |   | Deficit       |   |   | Interests      |   |     | Deficit |   |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |
| Balance, January 1, 2007                                         |   | $      | 1      |   |       |   | 136,131 |        |   |   | (191,816      | )      |   |          | 13     |   |           |   | (55,671  | )       |   |   | 75 |   |   |   | (55,596 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Cumulative adjustment upon adoption of FIN 48                    |   | -      |   |   |       | -      |    |        |   | 183    |          |   |   | -             |   |   |           | 183    |     |    |   | - |   |   |   | 183 |   |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Capital contribution                                             |   |   | -      |   |       |   | 1,792   |        |   |   | -             |   |   |          | -      |   |           |   | 1,792    |    |   |   | - |   |   |   | 1,792 |   |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Distributions to noncontrolling interest holders                 |   | -      |   |   |       | -      |    |        |   | -      |          |   |   | -             |   |   |           | -      |     |    |   | (519 | ) |   |   | (519 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Consolidation of previously unconsolidated limited partnership   |   |   | -      |   |       |   | -       |        |   |   | -             |   |   |          | -      |   |           |   | -        |    |   |   | 70 |   |   |   | 70 |   |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Net (loss) earnings                                              |   |   | -      |   |       |   | -       |        |   |   | (16,335       | )      |   |          | -      |   |           |   | (16,335  | )       |   |   | 707 |   |   |   | (15,628 | ) |
| Currency translation adjustment                                  |   |   | -      |   |       |   | -       |        |   |   | -             |   |   |          | 73     |   |           |   | 73       |    |   |   | - |   |   |   | 73 |   |
| Total comprehensive loss                                         |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   | (15,555 | ) |
| Balance, December 30, 2007                                       |   |   | 1      |   |       |   | 137,923 |        |   |   | (207,968      | )      |   |          | 86     |   |           |   | (69,958  | )       |   |   | 333 |   |   |   | (69,625 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Capital contribution                                             |   |   | -      |   |       |   | 12,500  |        |   |   | -             |   |   |          | -      |   |           |   | 12,500   |    |   |   | - |   |   |   | 12,500 |   |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Distribution of equity ownership units in P&MC's Holding LLC |   | -      |   |   |       | (572   | )       |        |   | -      |          |   |   | -             |   |   |           | (572   | )        |    |   | - |   |   |   | (572 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Distributions to noncontrolling interest holders                 |   | -      |   |   |       | -      |    |        |   | -      |          |   |   | -             |   |   |           | -      |     |    |   | (402 | ) |   |   | (402 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Net (loss) earnings                                              |   |   | -      |   |       |   | -       |        |   |   | (52,953       | )      |   |          | -      |   |           |   | (52,953  | )       |   |   | 284 |   |   |   | (52,669 | ) |
| Currency translation adjustment                                  |   |   | -      |   |       |   | -       |        |   |   | -             |   |   |          | (90    | )      |           |   | (90      | )       |   |   | - |   |   |   | (90 | ) |
| Total comprehensive loss                                         |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   | (52,759 | ) |
| Balance, December 28, 2008                                       |   |   | 1      |   |       |   | 149,851 |        |   |   | (260,921      | )      |   |          | (4     | )      |           |   | (111,073 | )       |   |   | 215 |   |   |   | (110,858 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Lease termination by related party (non-cash)                    |   | -      |   |   |       | 1,019  |    |        |   | -      |          |   |   | -             |   |   |           | 1,019  |     |    |   | - |   |   |   | 1,019 |   |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Distributions to noncontrolling interest holders                 |   | -      |   |   |       | -      |    |        |   | -      |          |   |   | -             |   |   |           | -      |     |    |   | (105 | ) |   |   | (105 | ) |
|                                                             |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   |   |   |
| Net (loss) earnings                                              |   |   | -      |   |       |   | -       |        |   |   | (36,219       | )      |   |          | -      |   |           |   | (36,219  | )       |   |   | 198 |   |   |   | (36,021 | ) |
| Currency translation adjustment                                  |   |   | -      |   |       |   | -       |        |   |   | -             |   |   |          | 49     |   |           |   | 49       |    |   |   | - |   |   |   | 49 |   |
| Total comprehensive loss                                         |   |   |   |   |       |   |    |        |   |   |          |   |   |          |   |   |           |   |     |    |   |   |   |   |   |   | (35,972 | ) |
| Balance, December 27, 2009                                       |   | $      | 1      |   |       |   | 150,870 |        |   |   | (297,140      | )      |   |          | 45     |   |           |   | (146,224 | )       |   |   | 308 |   |   |   | (145,916 | ) |

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| ·   | Perkins & Marie Callender’s Holding Inc., which is a wholly-owned subsidiary of |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | P&MC’s Holding Corp, which is a wholly-owned subsidiary of |
|--------------------|----------------------------------------------------------------------|

| ·   | P&MC’s Real Estate Holding LLC, which is a wholly-owned subsidiary of |
|--------------------|---------------------------------------------------------------------------------|

| ·   | P&MC’s Holding LLC, which is principally owned by affiliates of Castle Harlan, Inc. (“Castle Harlan”). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

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|                   |   | Years  |          |
|------------------------|--------|--------|---------------|
| Land improvements      |   |   | 3 — 20  |   |
| Buildings              |   |   | 20 — 30 |   |
| Leasehold improvements |   |   | 3 — 20  |   |
| Equipment              |   |   | 1 — 7   |   |

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| ·   | Noncontrolling interests of $215,000 as of December 28, 2008 were reclassified and are now included in total deficit in the accompanying Consolidated Balance Sheets. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net earnings attributable to noncontrolling interests of $284,000 and $707,000 for the years ended December 28, 2008 and December 30, 2007, respectively, are presented separately after net loss in the accompanying consolidated statements of operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                      |   | Year Ended             |   |   | Year Ended        |   |                      | Year Ended        |   |
|-------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|---------------------------|-------------------|--------|
|                                      |   | December 27, 2009 |   |   | December 28, 2008 |   |                      | December 30, 2007 |   |
| (Increase) decrease in:                   |   |                   |   |   |              |   |                      |              |   |
| Restricted cash                           |   | $                      | 2,100  |   |              |   | ­─ ­ |              |   |   | ─ |   |
| Receivables                               |   |                   | 3,423  |   |              |   | (3,726                    | )                 |   |   | 1,470 |   |
| Inventories                               |   |                   | 1,238  |   |              |   | 939                       |              |   |   | (2,218 | ) |
| Prepaid expenses and other current assets |   |                   | 1,133  |   |              |   | 2,736                     |              |   |   | (904 | ) |
| Other assets                              |   |                   | 1,911  |   |              |   | 3,594                     |              |   |   | (467 | ) |
|                                      |   |                   |   |   |              |   |                      |              |   |   |   |   |
| Increase (decrease) in:                   |   |                   |   |   |              |   |                      |              |   |   |   |   |
| Accounts payable                          |   |                   | (3,636 | )      |              |   | (7,327                    | )                 |   |   | 2,642 |   |
| Accrued expenses                          |   |                   | (4,579 | )      |              |   | (7,422                    | )                 |   |   | (2,516 | ) |
| Other liabilities                         |   |                   | 5,951  |   |              |   | 4,096                     |              |   |   | 5,076 |   |
|                                      |   | $                      | 7,541  |   |              |   | (7,110                    | )                 |   |   | 3,083 |   |

|                        |   | Year Ended   |   |   | Year Ended   |   |   | Year Ended   |   |
|-----------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
|                        |   | December 27, |   |   | December 28, |   |   | December 30, |   |
|                        |   | 2009         |   |   | 2008         |   |   | 2007         |   |
| Cash paid for interest      |   | $            | 43,531 |   |         |   | 30,279 |         |   |   | 29,186 |   |
| Income taxes paid           |   |         | 153    |   |         |   | 681    |         |   |   | 1,044 |   |
| Income tax refunds received |   |         | 1,241  |   |         |   | 577    |         |   |   | 954 |   |
|                        |   |         |   |   |         |   |   |         |   |   |   |   |

|                                              |   | December 27, 2009 |     |   | December 28, 2008 |   |
|--------------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
| Owned:                                                 |   |              |     |   |              |   |
| Land and land improvements                             |   | $                 | 3,310    |   |              |   | 3,344 |   |
| Buildings                                              |   |              | 7,372    |   |              |   | 8,542 |   |
| Leasehold improvements                                 |   |              | 89,534   |   |              |   | 90,668 |   |
| Equipment                                              |   |              | 123,269  |   |              |   | 128,745 |   |
| Construction in progress                               |   |              | 1,147    |   |              |   | 1,690 |   |
|                                                   |   |              | 224,632  |   |              |   | 232,989 |   |
| Less — accumulated depreciation and amortization |   |              | (152,035 | )      |              |   | (144,985 | ) |
|                                                   |   |              | 72,597   |   |              |   | 88,004 |   |
|                                                   |   |              |     |   |              |   |   |   |
| Property under capital lease:                          |   |              |     |   |              |   |   |   |
| Leasehold improvements                                 |   |              | 7,485    |   |              |   | 9,521 |   |
| Less — accumulated amortization                  |   |              | (4,863   | )      |              |   | (5,071 | ) |
|                                                   |   |              | 2,622    |   |              |   | 4,450 |   |
|                                                   |   |              |     |   |              |   |   |   |
| Assets held for sale                                   |   |              | -        |   |              |   | 1,046 |   |
| Property and equipment, net                            |   | $                 | 75,219   |   |              |   | 93,500 |   |

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|                                             |   | Lease Obligations |    |
|--------------------------------------------------|--------|-------------------|---------|
|                                             |   | Capital           |    |   | Operating |   |
| 2010                                             |   | $                 | 1,581   |   |   |   | 36,631 |   |
| 2011                                             |   |              | 1,406   |   |   |   | 34,266 |   |
| 2012                                             |   |              | 1,374   |   |   |   | 32,578 |   |
| 2013                                             |   |              | 1,381   |   |   |   | 29,919 |   |
| 2014                                             |   |              | 1,403   |   |   |   | 27,308 |   |
| Thereafter                                       |   |              | 16,178  |   |   |   | 229,667 |   |
| Total minimum lease payments                     |   |              | 23,323  |   |   | $ | 390,369 |   |
| Less:                                            |   |              |    |   |   |   |   |   |
| Amounts representing interest (at 3.3% to 18.2%) |   |              | (11,781 | ) |   |   |   |   |
| Capital lease obligations                        |   | $                 | 11,542  |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Lessor |   |   | Sublessor |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|
| 2010                                                                                                                                                           |   | $      | 152    |   |      |   | 694 |   |
| 2011                                                                                                                                                           |   |   | 115    |   |      |   | 564 |   |
| 2012                                                                                                                                                           |   |   | 77     |   |      |   | 475 |   |
| 2013                                                                                                                                                           |   |   | 77     |   |      |   | 362 |   |
| 2014                                                                                                                                                           |   |   | 19     |   |      |   | 235 |   |
| Thereafter                                                                                                                                                     |   |   | -      |   |      |   | 827 |   |
| Total expected minimum lease rental receipts                                                                                                                   |   | $      | 440    |   |      |   | 3,157 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Year EndedDecember 27, 2009 |   |   | Year EndedDecember 28, 2008 |   |   | Year EndedDecember 30, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|
| Minimum rentals                                                                                                 |   | $                           | 38,694 |   |                        |   | 38,365 |                        |   |   | 41,269 |   |
| Contingent rentals                                                                                              |   |                        | 606    |   |                        |   | 930    |                        |   |   | 1,566 |   |
| Less — sublease rentals                                                                                   |   |                        | (654   | )      |                        |   | (616   | )                           |   |   | (715 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                           | 38,646 |   |                        |   | 38,679 |                        |   |   | 42,120 |   |

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|                       |   | RestaurantOperations |    |   | FranchiseOperations |   |    |   Foxtail |   |   | TotalCompany |   |
|---------------------------------|--------|----------------------|---------|--------|---------------------|--------|---------|----------------|--------|--------|--------------|--------|
| Balance as of December 30, 2007 |   | $                    | 9,836   |   |                |   | 18,538  |           |   |   | 1,664        |   |   |   | 30,038 |   |
| Goodwill impairment charge      |   |                 | — |   |                |   | (18,538 | )              |   |   | (1,664       | )      |   |   | (20,202 | ) |
| Balance as of December 28, 2008 |   |                 | 9,836   |   |                |   | — |           |   |   | —      |   |   |   | 9,836 |   |
| Adjustments                     |   |                 | — |   |                |   | — |           |   |   | —      |   |   |   | — |   |
| Balance as of December 27, 2009 |   | $                    | 9,836   |   |                |   | ─ |           |   |   | ─      |   |   |   | 9,836 |   |

|                             |   | December 27, 2009 |    |   | December 28, 2008 |   |
|---------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Amortizing intangible assets:         |   |              |    |   |              |   |
| Franchise agreements                  |   | $                 | 35,000  |   |              |   | 35,000 |   |
| Customer relationships                |   |              | 10,000  |   |              |   | 13,300 |   |
| Acquired franchise rights             |   |              | 10,758  |   |              |   | 11,076 |   |
| Design prototype                      |   |              | 834     |   |              |   | 834 |   |
| Subtotal                              |   |              | 56,592  |   |              |   | 60,210 |   |
| Less — accumulated amortization |   |              | (20,179 | )      |              |   | (19,963 | ) |
| Net amortizing intangible assets      |   |              | 36,413  |   |              |   | 40,247 |   |
| Non-amortizing intangible asset:      |   |              |    |   |              |   |   |   |
| Tradename                             |   |              | 110,600 |   |              |   | 110,600 |   |
| Total intangible assets               |   | $                 | 147,013 |   |              |   | 150,847 |   |

|    |   | Estimated Amortization Expense |   |
|--------------|--------|--------------------------------|--------|
| 2010         |   | $                              | 2,056  |   |
| 2011         |   |                           | 2,016  |   |
| 2012         |   |                           | 1,962  |   |
| 2013         |   |                           | 1,849  |   |
| 2014         |   |                           | 1,820  |   |

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|                             |   | December 27, 2009 |   |   | December 28, 2008 |   |
|---------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Payroll and related benefits          |   | $                 | 15,423 |   |              |   | 15,017 |   |
| Property, real estate and sales taxes |   |              | 4,267  |   |              |   | 4,118 |   |
| Insurance                             |   |              | 2,219  |   |              |   | 1,874 |   |
| Gift cards and gift certificates      |   |              | 5,090  |   |              |   | 7,446 |   |
| Advertising                           |   |              | 792    |   |              |   | 978 |   |
| Interest                              |   |              | 6,065  |   |              |   | 9,634 |   |
| Other                                 |   |              | 7,749  |   |              |   | 7,973 |   |
|                                  |   | $                 | 41,605 |   |              |   | 47,040 |   |

|                                                                                 |   | December 27, 2009 |    |   | December 28, 2008 |   |
|-------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| 10% Senior Notes, due October 1, 2013, net of discount of $1,219 and $1,548, respectively |   | $                 | 188,781 |   |              |   | 188,452 |   |
| Secured Notes, due May 31, 2013, net of discount of $6,009 and $7,220, respectively       |   |              | 125,990 |   |              |   | 124,780 |   |
| Revolver, due February 28, 2013                                                           |   |              | 11,171  |   |              |   | 3,184 |   |
| Promissory Note, due January 2011                                                         |   |              | 100     |   |              |   | 100 |   |
| Other                                                                                     |   |              | 15      |   |              |   | 33 |   |
|                                                                                      |   |              | 326,057 |   |              |   | 316,549 |   |
| Less current maturities                                                                   |   |              | (15     | )      |              |   | (15 | ) |
|                                                                                      |   | $                 | 326,042 |   |              |   | 316,534 |   |

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| 1. | The Company would, at the time of such Restricted Payments and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional indebtedness pursuant to the fixed charge coverage ratio tests as defined in the indenture. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company after September 21, 2005, is less than the sum, without duplication, of (i) 50% of the consolidated net income of the Company for the period from the beginning of the first full fiscal quarter commencing after the date of the indenture to the end of the Company’s most recent ended fiscal quarter for which internal financial statements are available at the time of the Restricted Payment; (ii) 100% of the aggregate net proceeds received by the Company since the date of the indenture as a contribution to its equity capital or from the sale of equity interests of the Company or from the conversion of interests or debt securities that have been converted to equity interests; and (iii) to the extent that any Restricted Investment, as defined, that was made after the date of the indenture is sold for cash, the lesser of (a) the cash return of capital or (b) the aggregate amount of such restricted investment that was treated as a Restricted Payment when made. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Amount |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| 2010                                                                                                                                 |   | $      | ─ |   |
| 2011                                                                                                                                 |   |   | 100     |   |
| 2012                                                                                                                                 |   |   | ─ |   |
| 2013                                                                                                                                 |   |   | 333,171 |   |
| 2014                                                                                                                                 |   |   | ─ |   |
| Thereafter                                                                                                                           |   |   | ─ |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 333,271 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | December 27, 2009 |   |   | December 28, 2008 |   |   | December 30, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
| Current:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |   |   |              |   |   |              |   |
| Federal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                 | 47     |   |              |   | 1,929  |              |   |   | (1,274 | ) |
| State and local                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | (218   | )      |              |   | 82     |              |   |   | 258 |   |
| Total current benefit (provision)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              | (171   | )      |              |   | 2,011  |              |   |   | (1,016 | ) |
| Deferred:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              |   |   |              |   |   |              |   |   |   |   |
| Federal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | -      |   |              |   | (242   | )                 |   |   | (248 | ) |
| State and local                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | -      |   |              |   | -      |              |   |   | (218 | ) |
| Total deferred provision                                                                                                                                  |   |              | -      |   |              |   | (242   | )                 |   |   | (466 | ) |
| Benefit from (provision for) income taxes                                                                                   |   | $                 | (171   | )      |              |   | 1,769  |              |   |   | (1,482 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | December 27, 2009 |   |   | December 28, 2008 |   |   | December 30, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
| Federal statutory rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              | 34.0   | %      |              |   | 34.0   | %                 |   |   | 34.0 | % |
| Federal income tax credits and addbacks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | 5.4    | %      |              |   | 3.8    | %                 |   |   | 1.2 | % |
| State income taxes, net of Federal taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | 7.8    | %      |              |   | 3.5    | %                 |   |   | (1.2 | )% |
| Changes in uncertain tax positions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | 0.2    | %      |              |   | 0.9    | %                 |   |   | (6.1 | )% |
| Non-deductible goodwill impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | -      |   |              |   | (12.6  | )%                |   |   | - |   |
| Non-deductible interest, expenses, other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |              | (1.1   | )%     |              |   | 0.1    | %                 |   |   | 0.9 | % |
| Federal and state valuation allowances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              | (46.8  | )%     |              |   | (26.5  | )%                |   |   | (39.3 | )% |
| Effective tax rate                                                                                   |   |              | (0.5   | )%     |              |   | 3.2    | %                 |   |   | (10.5 | )% |

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|                                                                       |   | December 27, 2009 |    |   | December 28, 2008 |   |
|---------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Deferred tax assets:                                                            |   |              |    |   |              |   |
| Net operating loss carryforwards                                                |   | $                 | 24,165  |   |              |   | 18,176 |   |
| Accrued expenses not currently deductible                                       |   |              | 17,149  |   |              |   | 15,371 |   |
| Tax credit carryforwards                                                        |   |              | 13,261  |   |              |   | 10,278 |   |
| Property, equipment, and improvements — tax basis in excess of book basis |   |              | 14,440  |   |              |   | 14,429 |   |
| Capital leases                                                                  |   |              | 4,611   |   |              |   | 2,046 |   |
| Total deferred tax assets                                                       |   |              | 73,626  |   |              |   | 60,300 |   |
| Less valuation allowance                                                        |   |              | (59,197 | )      |              |   | (43,498 | ) |
|                                                                            |   |              | 14,429  |   |              |   | 16,802 |   |
| Deferred tax liabilities:                                                       |   |              |    |   |              |   |   |   |
| Investment in unconsolidated partnership                                        |   |              | -       |   |              |   | (18 | ) |
| Intangible assets — book basis in excess of tax basis                     |   |              | (14,429 | )      |              |   | (16,784 | ) |
|                                                                            |   |              | (14,429 | )      |              |   | (16,802 | ) |
| Net deferred tax assets                                                         |   | $                 | -       |   |              |   | - |   |

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|                                                |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Unrecognized tax benefit - beginning of fiscal year |   | $      | 1,359  |   |   |   | 5,724  |   |   |   | 5,126 |   |
| Additions for tax positions of prior years          |   |   | 112    |   |   |   | 97     |   |   |   | 1,480 |   |
| Reductions for tax positions of prior years         |   |   | -      |   |   |   | (2,341 | )      |   |   | (699) |   |
| Reductions due to settlements                       |   |   | (152   | )      |   |   | (1,080 | )      |   |   | - |   |
| Reductions for lapse of statute of limitations      |   |   | (166   | )      |   |   | (1,041 | )      |   |   | (183 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrecognized tax benefit - end of fiscal year       |   | $      | 1,153  |   |   |   | 1,359  |   |   |   | 5,724 |   |

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| # of        |   |   | Year-to-Date |              |      | # of        |   |   | Year-to-Date |   |
|-------------|--------|--------|--------------|-------------------|-----------|-------------|--------|--------|--------------|--------|
| Restaurants |   |   | Ended        |              |      | Restaurants |   |   | Ended        |   |
|        | (2009) |   |         | December 27, 2009 |      |        |   | (2008) |         |   | December 28, 2008 |   |
|        |   |   |         |              |      |        |   |   |         |   |   |   |
|        | 40     |   |         | $                 | 1,861,000 |        |   |   | 41           |   |   | $ | 1,926,000 |   |
|        | 27     |   |         |              | 1,420,000 |        |   |   | 27           |   |   |   | 1,452,000 |   |
|        | 21     |   |         |              | 1,427,000 |        |   |   | 21           |   |   |   | 1,500,000 |   |

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| # of        |   |   | Year-to-Date |              |    | # of        |   |   | Year-to-Date |   |
|-------------|--------|--------|--------------|-------------------|---------|-------------|--------|--------|--------------|--------|
| Restaurants |   |   | Ended        |              |    | Restaurants |   |   | Ended        |   |
|        | (2009) |   |         | December 27, 2009 |    |        |   | (2008) |         |   | December 28, 2008 |   |
|        |   |   |         |              |    |        |   |   |         |   |   |   |
|        | 4      |   |         | $                 | 371,000 |        |   |   | 5            |   |   | $ | 542,000 |   |
|        | 4      |   |         |              | 389,000 |        |   |   | 4            |   |   |   | 465,000 |   |
|        | 4      |   |         |              | 283,000 |        |   |   | 4            |   |   |   | 312,000 |   |

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|                          |   | Year Ended             |    |   | Year Ended        |   |    |   | Year Ended        |   |
|-------------------------------|--------|------------------------|---------|--------|-------------------|--------|---------|--------|-------------------|--------|
|                          |   | December 27, 2009 |    |   | December 28, 2008 |   |    |   | December 30, 2007 |   |
| Revenues                      |   |                   |    |   |              |   |    |   |              |   |
| Restaurant operations         |   | $                      | 470,346 |   |              |   | 503,242 |   |              |   |   | 510,863 |   |
| Franchise operations          |   |                   | 22,532  |   |              |   | 24,141  |   |              |   |   | 25,982 |   |
| Foxtail                       |   |                   | 58,469  |   |              |   | 69,308  |   |              |   |   | 65,953 |   |
| Intersegment revenue          |   |                   | (21,052 | )      |              |   | (20,088 | )      |              |   |   | (19,826 | ) |
| Other                         |   |                   | 5,773   |   |              |   | 5,367   |   |              |   |   | 4,914 |   |
| Total                         |   | $                      | 536,068 |   |              |   | 581,970 |   |              |   |   | 587,886 |   |
|                          |   |                   |    |   |              |   |    |   |              |   |   |   |   |
| Depreciation and amortization |   |                   |    |   |              |   |    |   |              |   |   |   |   |
| Restaurant operations         |   |                   | 18,546  |   |              |   | 19,563  |   |              |   |   | 18,913 |   |
| Franchise operations          |   |                   | -       |   |              |   | -       |   |              |   |   | - |   |
| Foxtail                       |   |                   | 2,103   |   |              |   | 1,792   |   |              |   |   | 1,576 |   |
| Other                         |   |                   | 3,392   |   |              |   | 3,344   |   |              |   |   | 4,333 |   |
| Total                         |   | $                      | 24,041  |   |              |   | 24,699  |   |              |   |   | 24,822 |   |
|                          |   |                   |    |   |              |   |    |   |              |   |   |   |   |
| Segment net income (loss)     |   |                   |    |   |              |   |    |   |              |   |   |   |   |
| Restaurant operations         |   |                   | 24,551  |   |              |   | 26,806  |   |              |   |   | 32,459 |   |
| Franchise operations          |   |                   | 20,665  |   |              |   | 3,603   |   |  (a)         |   |   | 23,774 |   |
| Foxtail                       |   |                   | 4,162   |   |              |   | (4,500  | )      |  (a)         |   |   | 3,687 |   |
| Other                         |   |                   | (85,597 | )      |              |   | (78,862 | )      |              |   |   | (76,255 | ) |
| Total                         |   | $                      | (36,219 | )      |              |   | (52,953 | )      |  (a)         |   |   | (16,335 | ) |

|                  |   | December 27, 2009 |    |   | December 28, 2008 |   |
|-----------------------|--------|-------------------|---------|--------|-------------------|--------|
| Segment assets        |   |              |    |   |              |   |
| Restaurant operations |   | $                 | 119,347 |   |              |   | 131,135 |   |
| Franchise operations  |   |              | 101,672 |   |              |   | 102,719 |   |
| Foxtail               |   |              | 31,754  |   |              |   | 37,575 |   |
| Other                 |   |              | 38,868  |   |              |   | 52,079 |   |
| Total                 |   | $                 | 291,641 |   |              |   | 323,508 |   |
|                  |   |              |    |   |              |   |   |   |
| Goodwill              |   |              |    |   |              |   |   |   |
| Restaurant operations |   |              | 9,836   |   |              |   | 9,836 |   |
| Franchise operations  |   |              | -       |   |              |   | - |   |
| Foxtail               |   |              | -       |   |              |   | - |   |
| Other                 |   |              | -       |   |              |   | - |   |
| Total                 |   | $                 | 9,836   |   |              |   | 9,836 |   |

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|                  |   | Year Ended        |   |   | Year Ended        |   |   | Year Ended        |   |
|-----------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                  |   | December 27, 2009 |   |   | December 28, 2008 |   |   | December 30, 2007 |   |
| Capital Expenditures  |   |              |   |   |              |   |   |              |   |
| Restaurant operations |   | $                 | 7,630  |   |              |   | 12,489 |              |   |   | 29,095 |   |
| Franchise operations  |   |              | -      |   |              |   | -      |              |   |   | - |   |
| Foxtail               |   |              | 727    |   |              |   | 4,710  |              |   |   | 1,476 |   |
| Other                 |   |              | 376    |   |              |   | 1,137  |              |   |   | 976 |   |
| Total                 |   | $                 | 8,733  |   |              |   | 18,336 |              |   |   | 31,547 |   |

|                                                  |   | Year Ended        |   |   | Year Ended        |   |   | Year Ended        |   |
|-------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                                  |   | December 27, 2009 |   |   | December 28, 2008 |   |   | December 30, 2007 |   |
| General and administrative expenses                   |   | $                 | 40,641 |   |              |   | 40,162 |              |   |   | 39,393 |   |
| Depreciation and amortization expenses                |   |              | 3,393  |   |              |   | 3,343  |              |   |   | 4,333 |   |
| Interest expense, net                                 |   |              | 44,120 |   |              |   | 36,689 |              |   |   | 31,180 |   |
| Loss on disposition of assets, net                    |   |              | 1,521  |   |              |   | 505    |              |   |   | 226 |   |
| Asset impairments                                     |   |              | 4,476  |   |              |   | 1,292  |              |   |   | 2,237 |   |
| Loss on extinguishment of debt                        |   |              | -      |   |              |   | 2,952  |              |   |   | - |   |
| Transaction costs                                     |   |              | -      |   |              |   | -      |              |   |   | 1,013 |   |
| Provision for (benefit from) income taxes             |   |              | 171    |   |              |   | (1,769 | )                 |   |   | 1,482 |   |
| Net earnings attributable to noncontrolling interests |   |              | 198    |   |              |   | 284    |              |   |   | 707 |   |
| Licensing revenue                                     |   |              | (5,505 | )      |              |   | (5,125 | )                 |   |   | (4,564 | ) |
| Other                                                 |   |              | (3,418 | )      |              |   | 529    |              |   |   | 248 |   |
| Total other segment loss                              |   | $                 | 85,597 |   |              |   | 78,862 |              |   |   | 76,255 |   |

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|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |
|------------------------------------------------------------------------|--------|---------|---------|--------|-----------|--------|---------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                                   |   |    |    |   | Guarantor |   |    | Non-       |   |   |         |   |   | Consolidated |   |
|                                                                   |   | Issuer  |    |   | WRG       |   |    | Guarantors |   |   | Eliminations |   |   | PMCI         |   |
|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |
| REVENUES:                                                              |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |
| Food sales                                                             |   | $       | 314,293 |   |      |   | 167,509 |       |   |   | 25,961       |   |   |         | -      |   |   |   | 507,763 |   |
| Franchise and other revenue                                            |   |    | 19,062  |   |      |   | 9,243   |       |   |   | -            |   |   |         | -      |   |   |   | 28,305 |   |
|    Total revenues                                       |   |    | 333,355 |   |      |   | 176,752 |       |   |   | 25,961       |   |   |         | -      |   |   |   | 536,068 |   |
|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                    |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                    |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |   |   |   |   |   |
|    Food cost                                            |   |    | 81,590  |   |      |   | 43,517  |       |   |   | 6,658        |   |   |         | -      |   |   |   | 131,765 |   |
|    Labor and benefits                                   |   |    | 106,842 |   |      |   | 61,716  |       |   |   | 9,114        |   |   |         | -      |   |   |   | 177,672 |   |
|    Operating expenses                                   |   |    | 85,118  |   |      |   | 51,002  |       |   |   | 9,510        |   |   |         | -      |   |   |   | 145,630 |   |
| General and administrative                                             |   |    | 39,018  |   |      |   | 7,135   |       |   |   | -            |   |   |         | -      |   |   |   | 46,153 |   |
| Depreciation and amortization                                          |   |    | 17,408  |   |      |   | 6,014   |       |   |   | 619          |   |   |         | -      |   |   |   | 24,041 |   |
| Interest, net                                                          |   |    | 43,395  |   |      |   | 725     |       |   |   | -            |   |   |         | -      |   |   |   | 44,120 |   |
| Asset impairments and closed store expenses                            |   |    | 3,233   |   |      |   | 2,677   |       |   |   | 87           |   |   |         | -      |   |   |   | 5,997 |   |
| Other, net                                                             |   |    | (1,638  | )      |      |   | (1,822  | )          |   |   | -            |   |   |         | -      |   |   |   | (3,460 | ) |
|    Total costs and expenses                             |   |    | 374,966 |   |      |   | 170,964 |       |   |   | 25,988       |   |   |         | -      |   |   |   | 571,918 |   |
| Loss before income taxes                                               |   |    | (41,611 | )      |      |   | 5,788   |       |   |   | (27          | )      |   |         | -      |   |   |   | (35,850 | ) |
| Provision for income taxes                                             |   |    | (171    | )      |      |   | -       |       |   |   | -            |   |   |         | -      |   |   |   | (171 | ) |
| Net (loss) income                                                      |   |    | (41,782 | )      |      |   | 5,788   |       |   |   | (27          | )      |   |         | -      |   |   |   | (36,021 | ) |
| Less: net earnings attributable to noncontrolling interests       |   |    | -       |   |      |   | -       |       |   |   | 198          |   |   |         | -      |   |   |   | 198 |   |
| Equity in (loss) earnings of subsidiaries                              |   |    | 5,761   |   |      |   | -       |       |   |   | -            |   |   |         | (5,761 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc. | $      | (36,021 | )       |   |      | 5,788  |    |       |   | (225   | )            |   |   | (5,761       | )      |   |   | (36,219 | ) |

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|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |
|------------------------------------------------------------------------|--------|---------|---------|--------|-----------|--------|---------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                                   |   |    |    |   | Guarantor |   |    | Non-       |   |   |         |   |   | Consolidated |   |
|                                                                   |   | Issuer  |    |   | WRG       |   |    | Guarantors |   |   | Eliminations |   |   | PMCI         |   |
|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |
| REVENUES:                                                              |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |
| Food sales                                                             |   | $       | 344,869 |   |      |   | 179,792 |       |   |   | 27,801       |   |   |         | -      |   |   |   | 552,462 |   |
| Franchise and other revenue                                            |   |    | 19,993  |   |      |   | 9,515   |       |   |   | -            |   |   |         | -      |   |   |   | 29,508 |   |
|    Total revenues                                       |   |    | 364,862 |   |      |   | 189,307 |       |   |   | 27,801       |   |   |         | -      |   |   |   | 581,970 |   |
|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                    |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                    |   |    |    |   |      |   |    |       |   |   |         |   |   |         |   |   |   |   |   |   |
|    Food cost                                            |   |    | 100,841 |   |      |   | 51,175  |       |   |   | 9,087        |   |   |         | -      |   |   |   | 161,103 |   |
|    Labor and benefits                                   |   |    | 115,931 |   |      |   | 63,163  |       |   |   | 9,337        |   |   |         | -      |   |   |   | 188,431 |   |
|    Operating expenses                                   |   |    | 90,388  |   |      |   | 53,683  |       |   |   | 8,189        |   |   |         | -      |   |   |   | 152,260 |   |
| General and administrative                                             |   |    | 42,590  |   |      |   | 5,239   |       |   |   | -            |   |   |         | -      |   |   |   | 47,829 |   |
| Depreciation and amortization                                          |   |    | 17,794  |   |      |   | 6,183   |       |   |   | 722          |   |   |         | -      |   |   |   | 24,699 |   |
| Interest, net                                                          |   |    | 35,604  |   |      |   | 1,085   |       |   |   | -            |   |   |         | -      |   |   |   | 36,689 |   |
| Asset impairments and closed store expenses                            |   |    | 221     |   |      |   | 1,523   |       |   |   | 53           |   |   |         | -      |   |   |   | 1,797 |   |
| Goodwill impairment                                                    |   |    | 20,202  |   |      |   | -       |       |   |   | -            |   |   |         | -      |   |   |   | 20,202 |   |
| Loss on extinguishment of debt                                         |   |    | 2,952   |   |      |   | -       |       |   |   | -            |   |   |         | -      |   |   |   | 2,952 |   |
| Other, net                                                             |   |    | 446     |   |      |   | -       |       |   |   | -            |   |   |         | -      |   |   |   | 446 |   |
|    Total costs and expenses                             |   |    | 426,969 |   |      |   | 182,051 |       |   |   | 27,388       |   |   |         | -      |   |   |   | 636,408 |   |
| Income (loss) before income taxes                                      |   |    | (62,107 | )      |      |   | 7,256   |       |   |   | 413          |   |   |         | -      |   |   |   | (54,438 | ) |
| Benefit from income taxes                                              |   |    | 1,769   |   |      |   | -       |       |   |   | -            |   |   |         | -      |   |   |   | 1,769 |   |
| Net (loss) income                                                      |   |    | (60,338 | )      |      |   | 7,256   |       |   |   | 413          |   |   |         | -      |   |   |   | (52,669 | ) |
| Less: net earnings attributable to noncontrolling interests            |   |    | -       |   |      |   | -       |       |   |   | 284          |   |   |         | -      |   |   |   | 284 |   |
| Equity in (loss) earnings of subsidiaries                              |   |    | 7,669   |   |      |   | -       |       |   |   | -            |   |   |         | (7,669 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc. | $      | (52,669 | )       |   |      | 7,256  |    |       |   | 129    |         |   |   | (7,669       | )      |   |   | (52,953 | ) |

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Table of Contents

|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |    |
|------------------------------------------------------------------------|--------|---------|---------|--------|-----------|--------|---------|------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                   |   |    |    |   | Guarantor |   |    | Non-       |   |   |         |   |   | Consolidated |    |
|                                                                   |   | Issuer  |    |   | WRG       |   |    | Guarantors |   |   | Eliminations |   |   | PMCI         |    |
|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |    |
| REVENUES:                                                              |   |    |    |   |      |   |    |       |   |   |         |   |   |         |    |
| Food sales                                                             |   | $       | 336,820 |   |      |   | 189,614 |       |   |   | 30,556       |   |   |         | -       |   |   |   | 556,990 |   |
| Franchise and other revenue                                            |   |    | 21,323  |   |      |   | 9,573   |       |   |   | -            |   |   |         | -       |   |   |   | 30,896 |   |
|    Total revenues                                       |   |    | 358,143 |   |      |   | 199,187 |       |   |   | 30,556       |   |   |         | -       |   |   |   | 587,886 |   |
|                                                                   |   |    |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| COSTS AND EXPENSES:                                                    |   |    |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                    |   |    |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
|    Food cost                                            |   |    | 94,986  |   |      |   | 55,260  |       |   |   | 8,462        |   |   |         | -       |   |   |   | 158,708 |   |
|    Labor and benefits                                   |   |    | 114,846 |   |      |   | 64,562  |       |   |   | 9,899        |   |   |         | -       |   |   |   | 189,307 |   |
|    Operating expenses                                   |   |    | 86,731  |   |      |   | 52,659  |       |   |   | 10,047       |   |   |         | -       |   |   |   | 149,437 |   |
| General and administrative                                             |   |    | 39,152  |   |      |   | 5,722   |       |   |   | -            |   |   |         | -       |   |   |   | 44,874 |   |
| Transaction costs                                                      |   |    | 772     |   |      |   | 241     |       |   |   |         |   |   |         | -       |   |   |   | 1,013 |   |
| Depreciation and amortization                                          |   |    | 17,610  |   |      |   | 5,939   |       |   |   | 1,273        |   |   |         | -       |   |   |   | 24,822 |   |
| Interest, net                                                          |   |    | 30,127  |   |      |   | 1,053   |       |   |   | -            |   |   |         | -       |   |   |   | 31,180 |   |
| Asset impairments and closed store expenses                            |   |    | (178    | )      |      |   | 2,612   |       |   |   | 29           |   |   |         | -       |   |   |   | 2,463 |   |
| Other, net                                                             |   |    | (122    | )      |      |   | 350     |       |   |   | -            |   |   |         | -       |   |   |   | 228 |   |
|    Total costs and expenses                             |   |    | 383,924 |   |      |   | 188,398 |       |   |   | 29,710       |   |   |         | -       |   |   |   | 602,032 |   |
| Income (loss) before income taxes                                      |   |    | (25,781 | )      |      |   | 10,789  |       |   |   | 846          |   |   |         | -       |   |   |   | (14,146 | ) |
| Provision for income taxes                                             |   |    | (1,482  | )      |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | (1,482 | ) |
| Net (loss) income                                                      |   |    | (27,263 | )      |      |   | 10,789  |       |   |   | 846          |   |   |         | -       |   |   |   | (15,628 | ) |
| Less: net earnings attributable to noncontrolling interests            |   |    | -       |   |      |   | -       |       |   |   | 707          |   |   |         | -       |   |   |   | 707 |   |
| Equity in (loss) earnings of subsidiaries                              |   |    | 11,635  |   |      |   | -       |       |   |   | -            |   |   |         | (11,635 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc. | $      | (15,628 | )       |   |      | 10,789 |    |       |   | 139    |         |   |   | (11,635      | )       |   |   | (16,335 | ) |

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Table of Contents

|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
|                                                                                |   |   |     |   | Guarantor |   |     | Non-       |   |   |         |   |   | Consolidated |    |
|                                                                                |   | Issuer |     |   | WRG       |   |     | Guarantors |   |   | Eliminations |   |   | PMCI         |    |
| ASSETS                                                                              |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
| CURRENT ASSETS:                                                                     |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
| Cash and cash equivalents                                                           |   | $      | 2,013    |   |      |   | 1,293    |       |   |   | 982          |   |   |         | -       |   |   |   | 4,288 |   |
| Restricted cash                                                                     |   |   | 8,110    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 8,110 |   |
| Receivables, less allowances for   doubtful accounts                 |   |   | 11,070   |   |      |   | 7,048    |       |   |   | 7            |   |   |         | -       |   |   |   | 18,125 |   |
| Inventories                                                                         |   |   | 8,038    |   |      |   | 2,793    |       |   |   | 231          |   |   |         | -       |   |   |   | 11,062 |   |
| Prepaid expenses and other current assets                                           |   |   | 1,613    |   |      |   | 248      |       |   |   | 3            |   |   |         | -       |   |   |   | 1,864 |   |
|      Total current assets                                  |   |   | 30,844   |   |      |   | 11,382   |       |   |   | 1,223        |   |   |         | -       |   |   |   | 43,449 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |   | 52,217   |   |      |   | 20,530   |       |   |   | 2,472        |   |   |         | -       |   |   |   | 75,219 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |   | -        |   |      |   | 41       |       |   |   | 9            |   |   |         | -       |   |   |   | 50 |   |
| GOODWILL                                                                            |   |   | 9,836    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 9,836 |   |
| INTANGIBLE ASSETS                                                                   |   |   | 146,889  |   |      |   | 124      |       |   |   | -            |   |   |         | -       |   |   |   | 147,013 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |   | (78,981  | )      |      |   | -        |       |   |   | -            |   |   |         | 78,981  |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |   | 81,493   |   |      |   | -        |       |   |   | -            |   |   |         | (81,493 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |   | 14,321   |   |      |   | 1,543    |       |   |   | 210          |   |   |         | -       |   |   |   | 16,074 |   |
| TOTAL ASSETS                                                                        |   | $      | 256,619  |   |      |   | 33,620   |       |   |   | 3,914        |   |   |         | (2,512  | ) |   |   | 291,641 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Accounts payable                                                                    |   | $      | 7,946    |   |      |   | 6,074    |       |   |   | 637          |   |   |         | -       |   |   |   | 14,657 |   |
| Accrued expenses                                                                    |   |   | 30,628   |   |      |   | 9,635    |       |   |   | 1,342        |   |   |         | -       |   |   |   | 41,605 |   |
| Franchise advertising contributions                                                 |   |   | 4,327    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 4,327 |   |
| Current maturities of long-term debt and   capital lease obligations |   |   | 186      |   |      |   | 317      |       |   |   | -            |   |   |         | -       |   |   |   | 503 |   |
|      Total current liabilities                             |   |   | 43,087   |   |      |   | 16,026   |       |   |   | 1,979        |   |   |         | -       |   |   |   | 61,092 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |   | 326,042  |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 326,042 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |   | 8,085    |   |      |   | 2,969    |       |   |   | -            |   |   |         | -       |   |   |   | 11,054 |   |
| DEFERRED RENT                                                                       |   |   | 12,263   |   |      |   | 4,765    |       |   |   | 64           |   |   |         | -       |   |   |   | 17,092 |   |
| OTHER LIABILITIES                                                                   |   |   | 13,366   |   |      |   | 8,911    |       |   |   | -            |   |   |         | -       |   |   |   | 22,277 |   |
| DUE TO PARENT                                                                       |   |   | -        |   |      |   | 80,421   |       |   |   | 1,072        |   |   |         | (81,493 | ) |   |   | - |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| EQUITY (DEFICIT):                                                                   |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Common stock                                                                        |   |   | 1        |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 1 |   |
| Preferred stock                                                                     |   |   | -        |   |      |   | 64,296   |       |   |   | -            |   |   |         | (64,296 | ) |   |   | - |   |
| Capital in excess of par                                                            |   |   | -        |   |      |   | 9,338    |       |   |   | -            |   |   |         | (9,338  | ) |   |   | - |   |
| Additional paid-in capital                                                          |   |   | 150,870  |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 150,870 |   |
| Treasury stock                                                                      |   |   | -        |   |      |   | (137     | )          |   |   | -            |   |   |         | 137     |   |   |   | - |   |
| Accumulated other comprehensive income                                              |   |   | 45       |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 45 |   |
| Accumulated (deficit) earnings                                                      |   |   | (297,140 | )      |      |   | (152,969 | )          |   |   | 491          |   |   |         | 152,478 |   |   |   | (297,140 | ) |
|   Total PMCI stockholder's (deficit) investment                           |   |   | (146,224 | )      |      |   | (79,472  | )          |   |   | 491          |   |   |         | 78,981  |   |   |   | (146,224 | ) |
| Noncontrolling interests                                                            |   |   | -        |   |      |   | -        |       |   |   | 308          |   |   |         | -       |   |   |   | 308 |   |
|   Total equity (deficit)                                                  |   |   | (146,224 | )      |      |   | (79,472  | )          |   |   | 799          |   |   |         | 78,981  |   |   |   | (145,916 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $      | 256,619  |   |      |   | 33,620   |       |   |   | 3,914        |   |   |         | (2,512  | ) |   |   | 291,641 |   |

----

Table of Contents

|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
|                                                                                |   |   |     |   | Guarantor |   |     | Non-       |   |   |         |   |   | Consolidated |    |
|                                                                                |   | Issuer |     |   | WRG       |   |     | Guarantors |   |   | Eliminations |   |   | PMCI         |    |
| ASSETS                                                                              |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
| CURRENT ASSETS:                                                                     |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
| Cash and cash equivalents                                                           |   | $      | 2,155    |   |      |   | 1,662    |       |   |   | 796          |   |   |         | -       |   |   |   | 4,613 |   |
| Restricted cash                                                                     |   |   | 10,140   |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 10,140 |   |
| Receivables, less allowances for   doubtful accounts                 |   |   | 14,392   |   |      |   | 6,955    |       |   |   | 39           |   |   |         | -       |   |   |   | 21,386 |   |
| Inventories                                                                         |   |   | 8,145    |   |      |   | 3,893    |       |   |   | 262          |   |   |         | -       |   |   |   | 12,300 |   |
| Prepaid expenses and other current assets                                           |   |   | 2,721    |   |      |   | 269      |       |   |   | 6            |   |   |         | -       |   |   |   | 2,996 |   |
|      Total current assets                                  |   |   | 37,553   |   |      |   | 12,779   |       |   |   | 1,103        |   |   |         | -       |   |   |   | 51,435 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |   | 65,020   |   |      |   | 26,357   |       |   |   | 2,123        |   |   |         | -       |   |   |   | 93,500 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |   | -        |   |      |   | 39       |       |   |   | 9            |   |   |         | -       |   |   |   | 48 |   |
| GOODWILL                                                                            |   |   | 9,836    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 9,836 |   |
| INTANGIBLE ASSETS                                                                   |   |   | 150,676  |   |      |   | 171      |       |   |   | -            |   |   |         | -       |   |   |   | 150,847 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |   | (85,354  | )      |      |   | -        |       |   |   | -            |   |   |         | 85,354  |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |   | 88,948   |   |      |   | -        |       |   |   | -            |   |   |         | (88,948 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |   | 16,195   |   |      |   | 1,437    |       |   |   | 210          |   |   |         | -       |   |   |   | 17,842 |   |
| TOTAL ASSETS                                                                        |   | $      | 282,874  |   |      |   | 40,783   |       |   |   | 3,445        |   |   |         | (3,594  | ) |   |   | 323,508 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Accounts payable                                                                    |   | $      | 11,090   |   |      |   | 6,731    |       |   |   | 474          |   |   |         | -       |   |   |   | 18,295 |   |
| Accrued expenses                                                                    |   |   | 33,575   |   |      |   | 12,123   |       |   |   | 1,342        |   |   |         | -       |   |   |   | 47,040 |   |
| Franchise advertising contributions                                                 |   |   | 5,316    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 5,316 |   |
| Current maturities of long-term debt and   capital lease obligations |   |   | 169      |   |      |   | 213      |       |   |   | -            |   |   |         | -       |   |   |   | 382 |   |
|      Total current liabilities                             |   |   | 50,150   |   |      |   | 19,067   |       |   |   | 1,816        |   |   |         | -       |   |   |   | 71,033 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |   | 316,516  |   |      |   | 18       |       |   |   | -            |   |   |         | -       |   |   |   | 316,534 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |   | 8,270    |   |      |   | 5,445    |       |   |   | -            |   |   |         | -       |   |   |   | 13,715 |   |
| DEFERRED RENT                                                                       |   |   | 10,180   |   |      |   | 5,089    |       |   |   | 74           |   |   |         | -       |   |   |   | 15,343 |   |
| OTHER LIABILITIES                                                                   |   |   | 8,831    |   |      |   | 8,910    |       |   |   | -            |   |   |         | -       |   |   |   | 17,741 |   |
| DUE TO PARENT                                                                       |   |   | -        |   |      |   | 88,324   |       |   |   | 624          |   |   |         | (88,948 | ) |   |   | - |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| EQUITY (DEFICIT):                                                                   |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Common stock                                                                        |   |   | 1        |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 1 |   |
| Preferred stock                                                                     |   |   | -        |   |      |   | 63,277   |       |   |   | -            |   |   |         | (63,277 | ) |   |   | - |   |
| Capital in excess of par                                                            |   |   | -        |   |      |   | 9,338    |       |   |   | -            |   |   |         | (9,338  | ) |   |   | - |   |
| Additional paid-in capital                                                          |   |   | 149,851  |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 149,851 |   |
| Treasury stock                                                                      |   |   | -        |   |      |   | (137     | )          |   |   | -            |   |   |         | 137     |   |   |   | - |   |
| Accumulated other comprehensive income                                              |   |   | (4       | )      |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | (4 | ) |
| Accumulated (deficit) earnings                                                      |   |   | (260,921 | )      |      |   | (158,548 | )          |   |   | 716          |   |   |         | 157,832 |   |   |   | (260,921 | ) |
|   Total PMCI stockholder's (deficit) investment                           |   |   | (111,073 | )      |      |   | (86,070  | )          |   |   | 716          |   |   |         | 85,354  |   |   |   | (111,073 | ) |
| Noncontrolling interests                                                            |   |   | -        |   |      |   | -        |       |   |   | 215          |   |   |         | -       |   |   |   | 215 |   |
|   Total equity (deficit)                                                  |   |   | (111,073 | )      |      |   | (86,070  | )          |   |   | 931          |   |   |         | 85,354  |   |   |   | (110,858 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $      | 282,874  |   |      |   | 40,783   |       |   |   | 3,445        |   |   |         | (3,594  | ) |   |   | 323,508 |   |

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Table of Contents

|                                                   |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |
|--------------------------------------------------------|--------|--------|---------|--------|-----------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                   |   |   |    |   | Guarantor |   |   | Non-       |   |   |         |   |   | Consolidated |   |
|                                                   |   | Issuer |    |   | WRG       |   |   | Guarantors |   |   | Eliminations |   |   | PMCI         |   |
|                                                   |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                  |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |
| Net (loss) income                                      |   | $      | (36,021 | )      |      |   | 5,788  |       |   |   | (27          | )      |   |         | (5,761 | ) |   |   | (36,021 | ) |
| Adjustments to reconcile net (loss) income to net cash |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| provided by (used in) operating activities:            |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries              |   |   | (5,761  | )      |      |   | -      |       |   |   | -            |   |   |         | 5,761  |   |   |   | - |   |
| Depreciation and amortization                          |   |   | 17,408  |   |      |   | 6,014  |       |   |   | 619          |   |   |         | -      |   |   |   | 24,041 |   |
| Asset impairments                                      |   |   | 2,519   |   |      |   | 1,870  |       |   |   | 87           |   |   |         | -      |   |   |   | 4,476 |   |
| Amortization of debt discount                          |   |   | 1,540   |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 1,540 |   |
| Other non-cash income and expense items                |   |   | (1,045  | )      |      |   | (1,430 | )          |   |   | -            |   |   |         | -      |   |   |   | (2,475 | ) |
| Loss on disposition of assets                          |   |   | 714     |   |      |   | 807    |       |   |   | -            |   |   |         | -      |   |   |   | 1,521 |   |
| Equity in net income of unconsolidated partnership     |   |   | -       |   |      |   | (2     | )          |   |   | -            |   |   |         | -      |   |   |   | (2 | ) |
| Net changes in operating assets and liabilities        |   |   | 9,430   |   |      |   | (2,108 | )          |   |   | 219          |   |   |         | -      |   |   |   | 7,541 |   |
| Total adjustments                                      |   |   | 24,805  |   |      |   | 5,151  |       |   |   | 925          |   |   |         | 5,761  |   |   |   | 36,642 |   |
| Net cash (used in) provided by operating activities    |   |   | (11,216 | )      |      |   | 10,939 |       |   |   | 898          |   |   |         | -      |   |   |   | 621 |   |
|                                                   |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                  |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Purchases of property and equipment                    |   |   | (4,544  | )      |      |   | (3,134 | )          |   |   | (1,055       | )      |   |         | -      |   |   |   | (8,733 | ) |
| Proceeds from sale of assets                           |   |   | 487     |   |      |   | 7      |       |   |   | -            |   |   |         | -      |   |   |   | 494 |   |
| Net cash used in investing activities                  |   |   | (4,057  | )      |      |   | (3,127 | )          |   |   | (1,055       | )      |   |         | -      |   |   |   | (8,239 | ) |
|                                                   |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                  |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Proceeds from revolving credit facilities              |   |   | 31,778  |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 31,778 |   |
| Repayment of revolving credit facilities               |   |   | (23,791 | )      |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | (23,791 | ) |
| Repayment of capital lease obligations                 |   |   | (169    | )      |      |   | (260   | )          |   |   | -            |   |   |         | -      |   |   |   | (429 | ) |
| Repayment of other debt                                |   |   | -       |   |      |   | (18    | )          |   |   | -            |   |   |         | -      |   |   |   | (18 | ) |
| Debt financing costs                                   |   |   | (142    | )      |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | (142 | ) |
| Distributions to noncontrolling interest holders       |   |   | -       |   |      |   | -      |       |   |   | (105         | )      |   |         | -      |   |   |   | (105 | ) |
| Intercompany financing                                 |   |   | 7,455   |   |      |   | (7,903 | )          |   |   | 448          |   |   |         | -      |   |   |   | - |   |
| Net cash provided by (used in) financing activities    |   |   | 15,131  |   |      |   | (8,181 | )          |   |   | 343          |   |   |         | -      |   |   |   | 7,293 |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   |   | (142   | )       |   |      | (369   | )      |       |   | 186    |         |   |   | -            |   |   |   | (325 | ) |
|                                                   |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                             |   |   |    |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Balance, beginning of period                           |   |   | 2,155   |   |      |   | 1,662  |       |   |   | 796          |   |   |         | -      |   |   |   | 4,613 |   |
| Balance, end of period                                 |   | $      | 2,013   |   |      |   | 1,293  |       |   |   | 982          |   |   |         | -      |   |   |   | 4,288 |   |

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Table of Contents

|                                                           |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |
|----------------------------------------------------------------|--------|---------|----------|--------|-----------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                           |   |    |     |   | Guarantor |   |   | Non-       |   |   |         |   |   | Consolidated |   |
|                                                           |   | Issuer  |     |   | WRG       |   |   | Guarantors |   |   | Eliminations |   |   | PMCI         |   |
|                                                           |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                          |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |
| Net (loss) income                                              |   | $       | (52,669  | )      |      |   | 7,256  |       |   |   | 413          |   |   |         | (7,669 | ) |   |   | (52,669 | ) |
| Adjustments to reconcile net (loss) income to net cash         |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| provided by (used in) operating activities:                    |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries                      |   |    | (7,669   | )      |      |   | -      |       |   |   | -            |   |   |         | 7,669  |   |   |   | - |   |
| Depreciation and amortization                                  |   |    | 17,795   |   |      |   | 6,182  |       |   |   | 722          |   |   |         | -      |   |   |   | 24,699 |   |
| Asset impairments                                              |   |    | 662      |   |      |   | 577    |       |   |   | 53           |   |   |         | -      |   |   |   | 1,292 |   |
| Amortization of debt discount                                  |   |    | 647      |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 647 |   |
| Other non-cash income and expense items                        |   |    | (116     | )      |      |   | 104    |       |   |   | -            |   |   |         | -      |   |   |   | (12 | ) |
| (Gain) loss on disposition of assets                           |   |    | (441     | )      |      |   | 946    |       |   |   | -            |   |   |         | -      |   |   |   | 505 |   |
| Goodwill impairment                                            |   |    | 20,202   |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 20,202 |   |
| Loss on extinguishment of debt                                 |   |    | 2,952    |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 2,952 |   |
| Equity in net loss of unconsolidated partnership               |   |    | -        |   |      |   | 5      |       |   |   | -            |   |   |         | -      |   |   |   | 5 |   |
| Net changes in operating assets and liabilities                |   |    | 1,767    |   |      |   | (8,435 | )          |   |   | (442         | )      |   |         | -      |   |   |   | (7,110 | ) |
| Total adjustments                                              |   |    | 35,799   |   |      |   | (621   | )          |   |   | 333          |   |   |         | 7,669  |   |   |   | 43,180 |   |
| Net cash (used in) provided by operating activities            |   |    | (16,870  | )      |      |   | 6,635  |       |   |   | 746          |   |   |         | -      |   |   |   | (9,489 | ) |
|                                                           |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                          |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Purchases of property and equipment                            |   |    | (14,697  | )      |      |   | (3,341 | )          |   |   | (298         | )      |   |         | -      |   |   |   | (18,336 | ) |
| Proceeds from sale of assets                                   |   |    | 592      |   |      |   | 95     |       |   |   | -            |   |   |         | -      |   |   |   | 687 |   |
| Net cash used in investing activities                          |   |    | (14,105  | )      |      |   | (3,246 | )          |   |   | (298         | )      |   |         | -      |   |   |   | (17,649 | ) |
|                                                           |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                          |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Proceeds from revolving credit facilities                      |   |    | 84,848   |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 84,848 |   |
| Repayment of revolving credit facilities                       |   |    | (101,664 | )      |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | (101,664 | ) |
| Proceeds from Secured Notes, net of $7,537 discount            |   |    | 124,463  |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 124,463 |   |
| Repayment of Term Loan                                         |   |    | (98,750  | )      |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | (98,750 | ) |
| Repayment of capital lease obligations                         |   |    | (148     | )      |      |   | (265   | )          |   |   | -            |   |   |         | -      |   |   |   | (413 | ) |
| Repayment of other debt                                        |   |    | -        |   |      |   | (18    | )          |   |   | -            |   |   |         | -      |   |   |   | (18 | ) |
| Debt financing costs                                           |   |    | (9,559   | )      |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | (9,559 | ) |
| Lessor financing of new restaurants                            |   |    | 2,286    |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 2,286 |   |
| Distributions to noncontrolling interest holders               |   |    | -        |   |      |   | -      |       |   |   | (402         | )      |   |         | -      |   |   |   | (402 | ) |
| Intercompany financing                                         |   |    | 335      |   |      |   | (1,872 | )          |   |   | 1,537        |   |   |         | -      |   |   |   | - |   |
| Capital contributions                                          |   |    | 12,500   |   |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | 12,500 |   |
| Repurchase of equity ownership units in P&MC's Holding LLC |   |    | (572     | )      |      |   | -      |       |   |   | -            |   |   |         | -      |   |   |   | (572 | ) |
| Net cash provided by (used in) financing activities            |   |    | 13,739   |   |      |   | (2,155 | )          |   |   | 1,135        |   |   |         | -      |   |   |   | 12,719 |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS           |   | (17,236 | )        |   |      | 1,234  |   |       |   | 1,583  |         |   |   | -            |   |   |   | (14,419 | ) |
|                                                           |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                     |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |
| Balance, beginning of period                                   |   |    | 19,391   |   |      |   | 428    |       |   |   | (787         | )      |   |         | -      |   |   |   | 19,032 |   |
| Balance, end of period                                         |   | $       | 2,155    |   |      |   | 1,662  |       |   |   | 796          |   |   |         | -      |   |   |   | 4,613 |   |
|                                                           |   |    |     |   |      |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |

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Table of Contents

|                                                   |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |
|--------------------------------------------------------|--------|--------|---------|--------|-----------|--------|---------|------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                   |   |   |    |   | Guarantor |   |    | Non-       |   |   |         |   |   | Consolidated |    |
|                                                   |   | Issuer |    |   | WRG       |   |    | Guarantors |   |   | Eliminations |   |   | PMCI         |    |
|                                                   |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |
| CASH FLOWS FROM OPERATING ACTIVITIES:                  |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |
| Net (loss) income                                      |   | $      | (15,628 | )      |      |   | 10,789  |       |   |   | 846          |   |   |         | (11,635 | ) |   |   | (15,628 | ) |
| Adjustments to reconcile net (loss) income to net cash |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| provided by (used in) operating activities:            |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries              |   |   | (11,635 | )      |      |   | -       |       |   |   | -            |   |   |         | 11,635  |   |   |   | - |   |
| Depreciation and amortization                          |   |   | 17,610  |   |      |   | 5,939   |       |   |   | 1,273        |   |   |         | -       |   |   |   | 24,822 |   |
| Asset impairments                                      |   |   | 427     |   |      |   | 1,781   |       |   |   | 29           |   |   |         | -       |   |   |   | 2,237 |   |
| Amortization of debt discount                          |   |   | 324     |   |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | 324 |   |
| Other non-cash income and expense items                |   |   | 265     |   |      |   | 68      |       |   |   | -            |   |   |         | -       |   |   |   | 333 |   |
| (Gain) loss on disposition of assets                   |   |   | (605    | )      |      |   | 831     |       |   |   | -            |   |   |         | -       |   |   |   | 226 |   |
| Equity in net loss of unconsolidated partnership       |   |   | -       |   |      |   | 82      |       |   |   | -            |   |   |         | -       |   |   |   | 82 |   |
| Net changes in operating assets and liabilities        |   |   | 6,373   |   |      |   | (2,815  | )          |   |   | (475         | )      |   |         | -       |   |   |   | 3,083 |   |
| Total adjustments                                      |   |   | 12,759  |   |      |   | 5,886   |       |   |   | 827          |   |   |         | 11,635  |   |   |   | 31,107 |   |
| Net cash (used in) provided by operating activities    |   |   | (2,869  | )      |      |   | 16,675  |       |   |   | 1,673        |   |   |         | -       |   |   |   | 15,479 |   |
|                                                   |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                  |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Purchases of property and equipment                    |   |   | (25,794 | )      |      |   | (5,095  | )          |   |   | (658         | )      |   |         | -       |   |   |   | (31,547 | ) |
| Proceeds from sale of assets                           |   |   | -       |   |      |   | 21      |       |   |   | -            |   |   |         | -       |   |   |   | 21 |   |
| Net cash used in investing activities                  |   |   | (25,794 | )      |      |   | (5,074  | )          |   |   | (658         | )      |   |         | -       |   |   |   | (31,526 | ) |
|                                                   |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                  |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Proceeds from revolving credit facilities              |   |   | 75,100  |   |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | 75,100 |   |
| Repayment of revolving credit facilities               |   |   | (55,100 | )      |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | (55,100 | ) |
| Repayment of Term Loan                                 |   |   | (750    | )      |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | (750 | ) |
| Repayment of capital lease obligations                 |   |   | (177    | )      |      |   | (525    | )          |   |   | -            |   |   |         | -       |   |   |   | (702 | ) |
| Proceeds from (repayment of) other debt                |   |   | 100     |   |      |   | (18     | )          |   |   | -            |   |   |         | -       |   |   |   | 82 |   |
| Lessor financing of new restaurants                    |   |   | 6,107   |   |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | 6,107 |   |
| Distributions to noncontrolling interest holders       |   |   | -       |   |      |   | -       |       |   |   | (519         | )      |   |         | -       |   |   |   | (519 | ) |
| Intercompany financing                                 |   |   | 17,649  |   |      |   | (17,788 | )          |   |   | 139          |   |   |         | -       |   |   |   | - |   |
| Capital contributions                                  |   |   | 1,792   |   |      |   | -       |       |   |   | -            |   |   |         | -       |   |   |   | 1,792 |   |
| Net cash provided by (used in) financing activities    |   |   | 44,721  |   |      |   | (18,331 | )          |   |   | (380         | )      |   |         | -       |   |   |   | 26,010 |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   |   | 16,058 |    |   |      | (6,730 | )       |       |   | 635    |         |   |   | -            |    |   |   | 9,963 |   |
|                                                   |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                             |   |   |    |   |      |   |    |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Balance, beginning of period                           |   |   | 3,333   |   |      |   | 7,158   |       |   |   | (1,422       | )      |   |         | -       |   |   |   | 9,069 |   |
| Balance, end of period                                 |   | $      | 19,391  |   |      |   | 428     |       |   |   | (787         | )      |   |         | -       |   |   |   | 19,032 |   |

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Table of Contents

|  2009 (in thousands)  |   | Revenues |    |   | (a)Gross Profit |   |   | Net Loss |   |
|---------------------------------|--------|----------|---------|--------|-----------------|--------|--------|----------|--------|
|                            |   |     |    |   |            |   |   |     |   |
| 1st Quarter                |   | $        | 169,253 |   |            |   | 25,253 |     |   |   | (9,754 | ) |
| 2nd Quarter                |   |     | 121,876 |   |            |   | 18,599 |     |   |   | (5,880 | ) |
| 3rd Quarter                |   |     | 115,470 |   |            |   | 14,755 |     |   |   | (11,248 | ) |
| 4th Quarter                |   |     | 129,469 |   |            |   | 22,394 |     |   |   | (9,337 | ) |
|                            |   | $        | 536,068 |   |            |   | 81,001 |     |   |   | (36,219 | ) |

|  2008 (in thousands)  |   | Revenues |    |   | (a)Gross Profit |   |   | (b)Net Loss |   |
|---------------------------------|--------|----------|---------|--------|-----------------|--------|--------|-------------|--------|
|                            |   |     |    |   |            |   |   |        |   |
| 1st Quarter                |   | $        | 182,400 |   |            |   | 25,556 |        |   |   | (7,588 | ) |
| 2nd Quarter                |   |     | 130,966 |   |            |   | 16,440 |        |   |   | (8,065 | ) |
| 3rd Quarter                |   |     | 127,901 |   |            |   | 16,377 |        |   |   | (30,477 | ) |
| 4th Quarter                |   |     | 140,703 |   |            |   | 21,803 |        |   |   | (6,823 | ) |
|                            |   | $        | 581,970 |   |            |   | 80,176 |        |   |   | (52,953 | ) |

| (a) | Gross profit represents total revenues less food cost, labor and benefits and operating expenses. |
|-----|---------------------------------------------------------------------------------------------------|

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Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

Item 9A(T). 
Controls and Procedures

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Table of Contents

Item 9B. 
Other Information

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Table of Contents

Item 10. Directors, Executive Officers and Corporate Governance

| Name                                                             |   |   Age |   | Position with PMCI                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joseph F. Trungale                                               |   |       | 68     |                                                                                                                                                                                                                                                                     | Director, President and Chief Executive Officer |
| Fred T. Grant, Jr.                                               |   |       | 54     |                                                                                                                                                                                                                                                                     | Executive Vice President and Chief Financial Officer |
| Pete M. Pascuzzi                                                 |   |       | 58     |                                                                                                                                                                                                                                                                     | Executive Vice President and Chief Operating Officer |
| Cheryl S. Ahlbrandt                                              |   |       | 53     |                                                                                                                                                                                                                                                                     | Senior Vice President, Marketing and Research & Development |
| Robert J. Winters                                                |   |       | 58     |                                                                                                                                                                                                                                                                     | Senior Vice President, Franchise Sales and Development |
|                                                                                                                                                                                                                                                                                              |   |       |   |                                                                                                                                                                                                                                                                     |   |

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Table of Contents

Item 11. Executive Compensation

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Table of Contents

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Table of Contents

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Table of Contents

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Table of Contents

|        Name and Principal Position         |        Year |   |      Salary(1) |    |   |     StockAwards(2) |   |    |    Non-EquityIncentive PlanCompensation(3) |   |   | Change inPension ValueandNonqualifiedDeferredCompensationEarnings(4) |   |   |     All OtherCompensation(5) |    |   |      Total(6) |   |
|------------------------------------------------------------------------------------|------------------------------------------------|--------|-----------------------------------------|---------|--------|----------------------------------------|--------|---------|-----------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|--------------------------------------------------|---------|--------|----------------------------------------|--------|
| Joseph F. Trungale                                                                 | 2009                                           |   | $                                       | 629,216 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | — |   |                                   |   | 45,052 |   |   | $  | 674,268 |   |
| Director, President and Chief Executive Officer                                    | 2008                                           |   |                                    | 629,658 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | — |   |                                   |   | 43,040 |   |   |   | 672,698 |   |
|                                                                               | 2007                                           |   |                                    | 615,020 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | — |   |                                   |   | 50,756 |   |   |   | 665,776 |   |
| Fred T. Grant, Jr.                                                                 | 2009                                           |   |                                    | 280,000 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | 4,456   |   |                                   |   | 39,364 |   |   |   | 323,820 |   |
|  Executive Vice President and Chief Financial Officer                         | 2008                                           |   |                                    | 211,268 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | (906    | )      |                                   |   | 134,694 |   |   |   | 345,056 |   |
|                                                                               | 2007                                           |   |                                    | — |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | — |   |                                   |   | — |   |   |   | — |   |
| Pete M. Pascuzzi                                                                   | 2009                                           |   |                                    | 379,177 |   |                                   |   | — |                                                      |   |   | 140,000                                                              |   |   |                                             | 11,623  |   |                                   |   | 38,177 |   |   |   | 568,977 |   |
| Executive Vice President and Chief Operating Officer                               | 2008                                           |   |                                    | 252,042 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | (7,845  | )      |                                   |   | 39,287 |   |   |   | 283,484 |   |
|                                                                               | 2007                                           |   |                                    | 230,360 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | 416     |   |                                   |   | 35,511 |   |   |   | 266,287 |   |
| Cheryl S. Ahlbrandt                                                                | 2009                                           |   |                                    | 228,800 |   |                                   |   | — |                                                      |   |   | 25,000                                                               |   |   |                                             | 1,598   |   |                                   |   | 26,756 |   |   |   | 282,154 |   |
|     Senior Vice President, Marketing and Research & Development | 2008                                           |   |                                    | 220,000 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | (3,031  | )      |                                   |   | 26,877 |   |   |   | 243,846 |   |
|                                                                               | 2007                                           |   |                                    | 201,139 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | 53      |   |                                   |   | 29,031 |   |   |   | 230,223 |   |
| Robert J. Winters                                                                  | 2009                                           |   |                                    | 235,000 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | 9,631   |   |                                   |   | 44,103 |   |   |   | 288,734 |   |
| Senior Vice President, Franchise Sales and Development                        | 2008                                           |   |                                    | 227,268 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | (8,401  | )      |                                   |   | 37,597 |   |   |   | 256,464 |   |
|                                                                               | 2007                                           |   |                                    | 215,193 |   |                                   |   | — |                                                      |   |   | —                                                              |   |   |                                             | 674     |   |                                   |   | 36,601 |   |   |   | 252,468 |   |

| (1) | The amounts in this column include any salary contributed by the named executive officer to our nonqualified deferred compensation and 401(k) plans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | On April 1, 2007, pursuant to strip subscription agreements, 17,673 Class A Units and 17,673 Class C Units were sold to certain of the company’s executives at $100.00 per unit and $0.01 per unit, respectively. This transaction is described more fully in Note 15 to the Consolidated Financial Statements, “P&MC’s Holding LLC Equity Plan” and Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The amounts in this column represent total performance-based bonuses earned for services rendered during 2009, 2008 and 2007, respectively. No bonuses were paid to the executive officers based on the actual financial results of the Company for fiscal 2008 or 2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amounts represent Nonqualified Deferred Compensation Plan earnings. |
|-----|---------------------------------------------------------------------|

| (5) | See table below for detail of amounts in this column. |
|-----|-------------------------------------------------------|

| (6) | The dollar value in this column for each named executive officer represents the sum of all compensation reflected in the preceding columns. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | All Other Compensation |
|--------|------------------------|

|      |    Year |   |  VehicleAllowance |    |   |   Club Dues |   |    |   Relocation(1) |   |   | Life InsurancePremiums |   |   | MedicalInsurancePremiums |    |   | 401(k)MatchingContributions |   |    | NQDCMatchingContributions(2) |   |   |   Total |   |
|--------------------------|------------------------|--------|------------------------|---------|--------|-----------------------|--------|---------|---------------------------|--------|--------|------------------------|--------|--------|--------------------------|---------|--------|-----------------------------|--------|---------|------------------------------|--------|--------|-------------------|--------|
| Joseph F. Trungale       | 2009                   |   | $                 | 9,600   |   |                  |   | 8,192   |                      |   |   | —                |   |   |                     | 8,625   |   |                        |   | 18,635  |                         |   |   | —           |   |   |   | — |   |   |  $ | 45,052 |   |
|                     | 2008                   |   |                   | 9,600   |   |                  |   | 4,785   |                      |   |   | —                |   |   |                     | 8,625   |   |                        |   | 20,030  |                         |   |   | —           |   |   |   | — |   |   |   | 43,040 |   |
|                     | 2007                   |   |                   | 9,600   |   |                  |   | 6,897   |                      |   |   | —                |   |   |                     | 8,625   |   |                        |   | 25,634  |                         |   |   | —           |   |   |   | — |   |   |   | 50,756 |   |
| Fred T. Grant, Jr.       | 2009                   |   |                   | 9,600   |   |                  |   | 1,747   |                      |   |   | —                |   |   |                     | 5,504   |   |                        |   | 16,086  |                         |   |   | —           |   |   |   | 6,427 |   |   |   | 39,364 |   |
|                     | 2008                   |   |                   | 7,600   |   |                  |   | 1,040   |                      |   |   | 107,380                |   |   |                     | 4,128   |   |                        |   | 8,084   |                         |   |   | —           |   |   |   | 6,462 |   |   |   | 134,694 |   |
|                     | 2007                   |   |                   | — |   |                  |   | — |                      |   |   | —                |   |   |                     | — |   |                        |   | — |                         |   |   | —           |   |   |   | — |   |   |   | — |   |
| Pete M. Pascuzzi         | 2009                   |   |                   | 9,600   |   |                  |   | — |                      |   |   | —                |   |   |                     | 5,683   |   |                        |   | 16,441  |                         |   |   | —           |   |   |   | 6,453 |   |   |   | 38,177 |   |
|                     | 2008                   |   |                   | 9,600   |   |                  |   | — |                      |   |   | —                |   |   |                     | 5,449   |   |                        |   | 17,191  |                         |   |   | —           |   |   |   | 7,047 |   |   |   | 39,287 |   |
|                     | 2007                   |   |                   | 9,600   |   |                  |   | — |                      |   |   | —                |   |   |                     | 5,422   |   |                        |   | 16,149  |                         |   |   | —           |   |   |   | 4,340 |   |   |   | 35,511 |   |
| Cheryl S. Ahlbrandt      | 2009                   |   |                   | 9,600   |   |                  |   | 1,550   |                      |   |   | —                |   |   |                     | 5,412   |   |                        |   | 10,194  |                         |   |   | —           |   |   |   | — |   |   |   | 26,756 |   |
|                     | 2008                   |   |                   | 9,600   |   |                  |   | 1,386   |                      |   |   | —                |   |   |                     | 5,399   |   |                        |   | 10,492  |                         |   |   | —           |   |   |   | — |   |   |   | 26,877 |   |
|                     | 2007                   |   |                   | 9,600   |   |                  |   | 1,223   |                      |   |   | —                |   |   |                     | 5,370   |   |                        |   | 9,872   |                         |   |   | —           |   |   |   | 2,966 |   |   |   | 29,031 |   |
| Robert J. Winters        | 2009                   |   |                   | 9,600   |   |                  |   | 8,204   |                      |   |   | —                |   |   |                     | 5,423   |   |                        |   | 14,397  |                         |   |   |              |   |   |   | 6,479 |   |   |   | 44,103 |   |
|                     | 2008                   |   |                   | 9,600   |   |                  |   | 1,386   |                      |   |   | —                |   |   |                     | 5,412   |   |                        |   | 14,078  |                         |   |   | 100               |   |   |   | 7,021 |   |   |   | 37,597 |   |
|                     | 2007                   |   |                   | 9,600   |   |                  |   | 1,223   |                      |   |   | —                |   |   |                     | 5,396   |   |                        |   | 13,322  |                         |   |   | 100               |   |   |   | 6,960 |   |   |   | 36,601 |   |

| (1) | In connection with his relocation to Memphis, TN, the Company incurred various relocation payments on behalf of Mr. Grant, including non-recurring closing costs on the sale of his primary residence, temporary housing in Memphis and the cost of transferring household goods and vehicles. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amounts represent contributions made by the Company and are discussed under “Nonqualified Deferred Compensation” below. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|  Name                                                          |   | Plan Name |    |   | Number of YearsCredited Service |   |    | Present Value ofAccumulated Benefit |   |    | Payments DuringLast Fiscal Year |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|---------------------------------|--------|---------|-------------------------------------|--------|---------|---------------------------------|--------|
| Joseph F. Trungale                                                  |   | SERP I    |    |   |                            | 5      |    |                                | $      | 235,804 |                            |   |   |    — |   |
| Fred T. Grant, Jr.                                                  |   |      | — |   |                            |   | — |                                |   |    | —                         |   |   |   | — |   |
| Pete M. Pascuzzi                                                    |   | SERP I    |    |   |                            | 5      |    |                                |   | 75,297  |                            |   |   |     — |   |
| Cheryl S. Ahlbrandt                                                 |   |      | — |   |                            |   | — |                                |   |    | —                         |   |   |   |  — |   |
| Robert J. Winters                                                   |   | SERP I    |    |   |                            | 5      |    |                                |   | 34,397  |                            |   |   |  — |   |

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Table of Contents

|     Name |   | ExecutiveContributions inLast Fiscal Year(1) |    |   | RegistrantContributions inLast Fiscal Year(2) |   |    | AggregateEarnings(Losses) in Last Fiscal Year(3) |   |   |  AggregateWithdrawals/Distributions |   |   | Aggregate Balanceat Last Fiscal YearEnd |    |
|------------------------------|--------|----------------------------------------------|---------|--------|-----------------------------------------------|--------|---------|--------------------------------------------------|--------|--------|------------------------------------------|--------|--------|-----------------------------------------|---------|
| Joseph F. Trungale           |   | $                                            | — |   |                                          |   | — |                                             |   |   | —                                  |   |   |                                    | — |   |   | $  | — |   |
| Fred T. Grant, Jr.           |   |                                         | 16,154  |   |                                          |   | 6,427   |                                             |   |   | 4,456                                    |   |   |                                    | — |   |   |   | 45,516 |   |
| Pete M. Pascuzzi             |   |                                         | 18,273  |   |                                          |   | 6,453   |                                             |   |   | 11,623                                   |   |   |                                    | — |   |   |   | 64,275 |   |
| Cheryl S. Ahlbrandt          |   |                                         | — |   |                                          |   | — |                                             |   |   | 1,598                                    |   |   |                                    | — |   |   |   | 6,529 |   |
| Robert J. Winters            |   |                                         | 6,779   |   |                                          |   | 6,479   |                                             |   |   | 9,631                                    |   |   |                                    | — |   |   |   | 44,858 |   |

| (1) | Amounts represent deferred salary and are reflected as such in the Salary column of the Summary Compensation Table. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (2) | Amounts represent contributions made by the Company and are reflected as such in the All Other Compensation column of the Summary Compensation Table, as well as in the NQDC Matching Contributions column of the All Other Compensation Table. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Amounts are also reflected in the Change in Pension Value and Nonqualified Deferred Compensation Earnings column of the Summary Compensation Table. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Salary |       |   | Benefits |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|----------|--------|
| Name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   (1) |   |     |   |     (2) |   |
| Individuals with 24 months continuation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |     |   |   |   |
| Joseph F. Trungale                                                                                                            |   | $      | 1,500,000  |   |     |   | 57,310 |   |
| Individuals with 12 months continuation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |     |   |   |   |
| Fred T. Grant, Jr.                                                                                                            |   |   | 280,000    |   |     |   | 15,190 |   |
| Pete M. Pascuzzi                                                                                                              |   |   | 400,000    |   |     |   | 22,640 |   |

| (1) | Reflects 24 months of continued salary in the case of Mr. Trungale and 12 months of continued salary in the cases of Messrs. Grant and Pascuzzi. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reflects 24 months of continued health (medical, dental and vision) and life insurance in the case of Mr. Trungale and 12 months of continued health (medical, dental and vision) and life insurance in the cases of Messrs. Grant and Pascuzzi. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|       Name and Principal Position  |   |     Fees Earned orPaid in Cash |   |   |      Stock Awards |    |    |     OptionAwards |   |    |    Non-EquityIncentive PlanCompensation |   |   | Change inPension ValueandNonqualifiedDeferredCompensationEarnings |    |   |     All OtherCompensation |    |    |      Total |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------|--------------------------------------------|---------|---------|--------------------------------------|--------|---------|--------------------------------------------------------|--------|--------|-------------------------------------------------------------------|---------|--------|-----------------------------------------------|---------|---------|-------------------------------------|--------|
| Allen J. Bernstein, Non-Executive Chairman                            | $      | 200,000                                            |   |   |                                       | — |    |                                 |   | — |                                                   |   |   | —                                                           |    |   |                                          | — |    |                                |   | — |   |   | $ | 200,000 |   |
| Zane Tankel, Director                                                 |   |                                               | 20,000 |   |                                       |    | — |                                 |   |    | —                                                |   |   |                                                              | — |   |                                          |    | — |                                |   |   | — |   |   |   | 20,000 |   |
| Lee Cohn, Director                                                    |   |                                               | 20,000 |   |                                       |    | — |                                 |   |    | —                                                |   |   |                                                              | — |   |                                          |    | — |                                |   |   | — |   |   |   | 20,000 |   |
| Dr. John J. Connolly, Director                                        |   |                                               | 35,000 |   |                                       |    | — |                                 |   |    | —                                                |   |   |                                                              | — |   |                                          |    | — |                                |   |   | — |   |   |   | 35,000 |   |

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Table of Contents

Item 12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters

|   | • | Each person who is known by us to beneficially own 5% or more of P&MC’s Holding LLC’s outstanding equity; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | • | Each member of P&MC’s Holding LLC’s board of directors; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | Each of our executive officers named in the executive compensation table; and |
|--------|---------|-------------------------------------------------------------------------------|

|   | • | All members of P&MC’s Holding LLC’s board of directors and our executive officers as a group. |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   Name and Address of Beneficial Owner                                    | Numberof Class A-1Units |      |    | %of TotalClass A-1Units |   |   | Numberof Class AUnits |   |      | %of TotalClass AUnits |        |   | Numberof Class BUnits |   |   | %of TotalClass BUnits |      |        | Numberof Class CUnits |   |   | %of TotalClass CUnits |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|-----------|---------|-------------------------|--------|--------|-----------------------|--------|-----------|-----------------------|-------------|--------|-----------------------|--------|--------|-----------------------|-----------|-------------|-----------------------|--------|--------|-----------------------|---------|
| Castle Harlan Partners IV, L.P. (1)(2)                                                                                                                                                                                                                             | 198,049.1               |      |    |                    | 42.9   | %      |                  |   | 591,138.1 |                  |        |   | 52.9                  | %      |   |                  | 700,118.7 |        |                  |   | 35.3   | %                     |    |   | — |   |   |   | — |   |
| Castle Harlan Partners III, L.P. (1)(2)                                                                                                                                                                                                                            | 62,169.4                |      |    |                    | 13.5   | %      |                  |   | 418,387.3 |                  |        |   | 37.5                  | %      |   |                  | 480,556.7 |        |                  |   | 24.2   | %                     |    |   | — |   |   |   | — |   |
| John K. Castle (1)(3)                                                                                                                                                                                                                                              |                    |      | — |                    |   |   | —               |   |      |                  | 1,027,739.4 |   |                  |   | 92.0   | %                     |      |        | 1,201,596.6           |   |   |                  | 60.5    | % |   |   | — |   |   |   | — |   |
| Donald N. Smith (1)                                                                                                                                                                                                                                                |                    |      | — |                    |   |   | —               |   |      |                  | 64,993.5    |   |                  |   | 5.8    | %                     |      |        | 64,993.5              |   |   |                  | 3.3     | % |   |   | — |   |   |   | — |   |
| Joseph F. Trungale (1)                                                                                                                                                                                                                                             |                    |      | — |                    |   |   | —               |   |      |                  | 7,363.9     |   |                  |   | 0.7    | %                     |      |        | —               |   |   |                  | — |   |   |   | 40,616.2 |   |   |   | 33.4 | % |
| Pete M. Pascuzzi (1)                                                                                                                                                                                                                                               |                    |      | — |                    |   |   | —               |   |      |                  | 1,288.7     |   |                  |   | 0.1    | %                     |      |        | —               |   |   |                  | — |   |   |   | 15,256.6 |   |   |   | 12.6 | % |
| Cheryl S. Ahlbrandt (1)                                                                                                                                                                                                                                            |                    |      | — |                    |   |   | —               |   |      |                  | 920.5       |   |                  |   | 0.1    | %                     |      |        | —               |   |   |                  | — |   |   |   | 6,074.6 |   |   |   | 5.0 | % |
| Robert J. Winters (1)                                                                                                                                                                                                                                              |                    |      | — |                    |   |   | —               |   |      |                  | 1,288.7     |   |                  |   | 0.1    | %                     |      |        | —               |   |   |                  | — |   |   |   | 8,105.4 |   |   |   | 6.7 | % |
| Allen J. Bernstein (1)                                                                                                                                                                                                                                             |                    |      | — |                    |   |   | —               |   |      |                  | 1,657.7     |   |                  |   | 0.1    | %                     |      |        | 8,061.4               |   |   |                  | 0.4     | % |   |   | — |   |   |   | — |   |
| David B. Pittaway (1)                                                                                                                                                                                                                                              |                    |      | — |                    |   |   | —               |   |      |                  | 224.2       |   |                  |   | 0.0    | %                     |      |        | 224.2                 |   |   |                  | 0.0     | % |   |   | — |   |   |   | — |   |
| William M. Pruellage (1)                                                                                                                                                                                                                                           |                    |      | — |                    |   |   | —               |   |      |                  | 22.4        |   |                  |   | 0.0    | %                     |      |        | 22.4                  |   |   |                  | 0.0     | % |   |   | — |   |   |   | — |   |
| Total Units (including those listed above)                                                                                                                                                                                                                         |                    | 461,327.5 |    |                    |   | 100.0  | %                     |   |      | 1,116,598.1           |        |   |                  | 100.00 | %      |                  |      | 1,985,820.5 |                  |   |   | 100.00                | %       |   |   | 121,427.6 |   |   |   | 100.00 | % |

| (1) | The address for CHP III, CHP IV and Messrs. Castle, Pittaway and Pruellage is c/o Castle Harlan, Inc., 150 East 58th Street, New York, New York 10155. The address for Mr. Bernstein is c/o Endeavor Restaurant Group, P.O. Box 3758, New Hyde Park, New York 11040. The address for Mr. Smith is 90 Hawthorne Lane, Barrington, Illinois 60010, and the address for the executive officers named in the table is 6075 Poplar Avenue, Suite 800, Memphis, Tennessee 38119. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes units of ownership interests held by related entities and persons, all of which may be deemed to be beneficially owned by CHP III and CHP IV, respectively. Each of CHP III and CHP IV disclaim beneficial ownership of these units. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| (3) | John K. Castle, a member of P&MC’s Holding LLC’s board of directors, is the controlling stockholder of Castle Harlan Partners IV, G.P., Inc., the general partner of the general partner of CHP IV, and as such may be deemed a beneficial owner of the units of P&MC’s Holding LLC owned by CHP IV and its affiliates. Mr. Castle is also the controlling stockholder of Castle Harlan Partners III, G.P., Inc., which is the general partner of the general partner of CHP III, and as such may be deemed a beneficial owner of the units of P&MC’s Holding LLC owned by CHP III and its affiliates. Mr. Castle disclaims beneficial ownership of all units in excess of his proportionate partnership share of CHP IV, CHP III and their respective affiliates. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 13. Certain Relationships and Related Transactions and Director
Independence

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Table of Contents

Item 14. Principal Accounting Fees and Services

|                   |   | 2009   |    |   | 2008   |
|------------------------|--------|--------|---------|--------|--------|
| Deloitte               |   |   |    |   |   |
| Audit fees             |   | $      | 765,500 |   |   |   | 707,000 |   |
| Audit-related fees (1) |   |   | — |   |   |   | 112,000 |   |
| Tax fees               |   |   | — |   |   |   | — |   |
| All other fees         |   |   | — |   |   |   | — |   |
| Total                  |   | $      | 765,500 |   |   |   | 819,000 |   |

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Table of Contents

Item 15. Exhibits and Financial Statement Schedules

| Exhibit No. |                                                                                                                                                                                                            |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1*        | Stock Purchase Agreement, dated as of September 2, 2005, by and among The Restaurant Holding Corporation, The Individuals and Entities listed on Exhibit A attached thereto and TRC Holding Corp.               |
| 2.2*        | First Amendment to Stock Purchase Agreement, dated as of September 21, 2005, by and among The Restaurant Corporation, TRC Holding Corp., BancBoston Ventures Inc. and Donald N. Smith                           |
| 2.3*        | Stock Purchase Agreement, dated as of May 3, 2006, by and among The Restaurant Company, TRC Holding LLC, Wilshire Restaurant Group, Inc. and the individuals and entities listed on Exhibit A attached thereto. |
| 3.1*        | Certificate of Amendment of Certificate of Incorporation of The Restaurant Company dated August 7, 2006.                                                                                                        |
| 3.2*        | Certificate of Amendment of Certificate of Formation of TRC Realty LLC dated December 5, 2006.                                                                                                                  |
| 4.1*        | First Supplemental Indenture, dated as of April 28, 2006, by and among The Restaurant Company, the Guarantors and The Bank of New York, as trustee.                                                             |
| 4.2*        | Form of 10% Senior Notes due 2013 (included in Exhibit 4.1)                                                                                                                                                     |
| 4.3*        | Form of Guarantee (included in Exhibit 4.1)                                                                                                                                                                     |
| 10.1**      | Purchase Agreement, dated September 24, 2008, by and among Perkins & Marie Callender’s Inc., the Guarantors named therein, and  Jefferies & Company, Inc.                               |
| 10.2**      | Indenture, dated as of September 24, 2008, among Perkins & Marie Callender’s Inc., the Guarantors named therein, and The Bank of New York Mellon, as Trustee.                                         |

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Table of Contents

| Exhibit No. |
|-------------|

| 10.3**      | Form of 14% Senior Secured Notes due 2013 (included in Exhibit 10.2).                                                                                                                                                                                                                        |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.4**      | Form of Guarantee (included in Exhibit 10.2).                                                                                                                                                                                                                                                |
| 10.5**      | Security Agreement, dated as of September 24, 2008, among the Grantors listed therein and those additional entities that become parties thereby, and The Bank of New York Mellon, as Trustee.                                                                                                |
| 10.6**      | Trademark Security Agreement, dated as of September 24, 2008, among the Grantors listed therein and those additional entities that become parties thereby, and The Bank of New York Mellon, as Trustee.                                                                                      |
| 10.7**      | Intercreditor Agreement, dated as of September 24, 2008, between Wells Fargo Foothill, LLC, as First Priority Agent, and The Bank of New York Mellon, as Second Priority Agent.                                                                                                              |
| 10.8**      | Credit Agreement, dated September 24, 2008, among Perkins & Marie Callender’s Holding Inc., as Parent, Perkins & Marie Callender’s Inc., as Borrower, the lenders that are signatories thereto, and Wells Fargo Foothill, LLC, as the Arranger and Administrative Agent. |
| 10.9**      | Security Agreement, dated as of September 24, 2008, among Perkins & Marie Callender’s Holding Inc. and each of its subsidiaries signatory thereto, as grantors, and Wells Fargo Foothill, LLC.                                                                                     |
| 10.10**     | Trademark Security Agreement, dated as of September 24, 2008, among the grantors thereto and Wells Fargo Foothill, LLC.                                                                                                                                                                      |
| 10.11***+   | Employment Agreement between Perkins & Marie Callender’s Inc. and Joseph F. Trungale, President and Chief Executive Officer                                                                                                                                                        |
| 10.12****+  | Employment Agreement between Perkins & Marie Callender’s Inc. and Fred T. Grant, Jr., Executive Vice President and Chief Financial Officer                                                                                                                                         |
| 10.13*****+ | Employment Agreement between Perkins & Marie Callender’s Inc. and Pete M. Pascuzzi, Executive Vice President, Operations and President, Perkins Restaurants                                                                                                                        |
| 21.1*       | List of subsidiaries of Perkins & Marie Callender’s Inc.                                                                                                                                                                                                                           |
| 31.1        | Chief Executive Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 302                                                                                                                                                                                                    |
| 31.2        | Chief Financial Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 302.                                                                                                                                                                                                   |
| 32.1        | Chief Executive Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 906.                                                                                                                                                                                                   |
| 32.2        | Chief Financial Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 906.                                                                                                                                                                                                   |

| * | Previously filed as an exhibit to the Registrant’s Registration Statement on Form S-4 (File No. 333-131004), originally filed on January 12, 2006. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K/A, originally filed on October 3, 2008. |
|----|-----------------------------------------------------------------------------------------------------------------------------|

| *** | Previously filed as an exhibit to the Annual Report on Form 10-K (File No. 333-57925), originally filed on June 27, 2007. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| **** | Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K, originally filed on March 18, 2008. |
|------|--------------------------------------------------------------------------------------------------------------------------|

| ***** | Previously filed as an exhibit to the Annual Report on Form 10-K (File No. 333-57925), originally filed on March 30, 2009. |
|-------|----------------------------------------------------------------------------------------------------------------------------|

| + | Management contract or compensatory plan or arrangement. |
|---|----------------------------------------------------------|

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Table of Contents

SIGNATURES

| Signature                                                                                                                                                                                                                                                                                                                                                                                                        | Title                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|
| /s/ Joseph F. Trungale                                                                | President and Chief Executive Officer                |
| Joseph F. Trungale                                                                                                                                                                                                                                                                                                                                                                                               | (Principal Executive Officer)                        |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                 |
| /s/ Fred T. Grant, Jr.                                                                | Executive Vice President and Chief Financial Officer |
| Fred T. Grant, Jr.                                                                                                                                                                                                                                                                                                                                                                                               | (Principal Financial and Accounting Officer)         |

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Table of Contents

SCHEDULE II

| Column A                                                                                                                                                                                                    |   | Column B                     |   |   | Column C            |   |   | Column D                      |   |   |                    | Column E |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|---------------------|--------|--------|-------------------------------|--------|--------|-------------------------|----------|--------|
|                                                                                                                                                                                                        |   |                         |   |   |                |   |   | Additions                     |   |   |                    |     |   |   |   |   |
|   Description                               |   | Balance atBeginning ofPeriod |   |   | BusinessCombination |   |   | Chargedto Costs &Expenses |   |   | Chargedto OtherAccounts |     |   | DeductionsfromReserves |   |     |   | Balanceat Closeof Period |   |
| FISCAL YEAR ENDED DECEMBER 27, 2009                                                                                                                                                                         |   |                         |   |   |                |   |   |                          |   |   |                    |     |   |   |   |   |   |   |   |
| Allowance for Doubtful Accounts                                                                                                                                                                             |   | $                            | 954    |   |                |   | 0      |                          |   |   | 290                     |     |   |   | 0 |   |   |   | (415 | ) | (a) |   | $ | 829 |   |
| FISCAL YEAR ENDED DECEMBER 28, 2008                                                                                                                                                                         |   |                         |   |   |                |   |   |                          |   |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Doubtful Accounts                                                                                                                                                                             |   |                         | 1,542  |   |                |   | 0      |                          |   |   | 79                      |     |   |   | 0 |   |   |   | (667 | ) | (a) |   |   | 954 |   |
| FISCAL YEAR ENDED DECEMBER 30, 2007                                                                                                                                                                         |   |                         |   |   |                |   |   |                          |   |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Doubtful Accounts                                                                                                                                                                             |   |                         | 1,624  |   |                |   | 0      |                          |   |   | 77                      |     |   |   | 0 |   |   |   | (159 | ) | (a) |   |   | 1,542 |   |

| (a) | Represents uncollectible accounts written off, net of recoveries, and net costs associated with sublease receivables for which a reserve was established. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|