----

----

|   | R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------|---|----------------------------------------------------------------------------------------|

|   | £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------|--------|-----------------------------------------------------------------------------------------|

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

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

----

----

TABLE OF CONTENTS

| PART I — FINANCIAL INFORMATION                                                                                                       |      Page        |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|  Item 1. Financial Statements:                                                                                                        |                                 |
|  Consolidated Statements of Operations (Unaudited) – Quarter and Year-to-Date Periods Ended July12, 2009 and July 13, 2008 | 2                                    |
|  Consolidated Balance Sheets – July 12, 2009 (Unaudited) and December 28, 2008                                                  | 3                                    |
|  Consolidated Statements of Cash Flows (Unaudited) – Year-to-Date Periods Ended July 12, 2009 and July 13, 2008                 | 5                                    |
|  Notes to Consolidated Financial Statements (Unaudited)                                                                               | 6                                    |
|  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                  | 23                                   |
|  Item 3. Quantitative and Qualitative Disclosures about Market Risk                                                                   | 38                                   |
|  Item 4. Controls and Procedures                                                                                                      | 39                                   |
|   PART II — OTHER INFORMATION                                                                                              |                                 |
|  Item 1. Legal Proceedings                                                                                                            | 40                                   |
|  Item 1A. Risk Factors                                                                                                                | 40                                   |
|  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                  | 40                                   |
|  Item 3. Defaults Upon Senior Securities                                                                                              | 40                                   |
|  Item 4. Submission of Matters to a Vote of Security Holders                                                                          | 40                                   |
|  Item 5. Other Information                                                                                                            | 40                                   |
|  Item 6. Exhibits                                                                                                                     | 40                                   |
|                                                                                                                                       |                                 |
| SIGNATURE                                                                                                                                  | 41                                   |
|  Ex-31.1 Section 302 Certification of the CEO                                                                                         |             |
|  Ex-31.2 Section 302 Certification of the CFO                                                                                         |        |
|  Ex-32.1 Section 906 Certification of the CEO                                                                                         |        |
|  Ex-32.2 Section 906 Certification of the CFO                                                                                         |             |

----

Table of Contents 

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                          | Quarter       |   |    | Quarter       |   |   | Year-to-Date  |   |   | Year-to-Date  |    |
|---------------------------------------------------------------|---------------|--------|---------|---------------|--------|--------|---------------|--------|--------|---------------|---------|
|                                                          | Ended         |   |    | Ended         |   |   | Ended         |   |   | Ended         |    |
|                                                          | July 12, 2009 |   |    | July 13, 2008 |   |   | July 12, 2009 |   |   | July 13, 2008 |    |
| REVENUES:                                                     |          |   |    |          |   |   |          |   |   |          |    |   |
| Food sales                                                    |          | $      | 115,061 |          |   |   | 123,953       |   |   |          | 275,938 |   |   |   | 297,421 |   |
| Franchise and other revenue                                   |          |   | 6,815   |          |   |   | 7,013         |   |   |          | 15,191  |   |   |   | 15,945 |   |
|     Total revenues                        |          |   | 121,876 |          |   |   | 130,966       |   |   |          | 291,129 |   |   |   | 313,366 |   |
| COSTS AND EXPENSES:                                           |          |   |    |          |   |   |          |   |   |          |    |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):           |          |   |    |          |   |   |          |   |   |          |    |   |   |
|     Food cost                             |          |   | 30,301  |          |   |   | 37,159        |   |   |          | 73,275  |   |   |   | 87,561 |   |
|     Labor and benefits                    |          |   | 40,904  |          |   |   | 43,199        |   |   |          | 96,229  |   |   |   | 102,688 |   |
|     Operating expenses                    |          |   | 32,072  |          |   |   | 34,168        |   |   |          | 77,773  |   |   |   | 81,121 |   |
| General and administrative                                    |          |   | 10,129  |          |   |   | 10,098        |   |   |          | 24,218  |   |   |   | 25,115 |   |
| Depreciation and amortization                                 |          |   | 5,557   |          |   |   | 5,764         |   |   |          | 12,913  |   |   |   | 13,370 |   |
| Interest, net                                                 |          |   | 10,130  |          |   |   | 8,026         |   |   |          | 23,745  |   |   |   | 18,303 |   |
| Asset impairments and closed store expenses                   |          |   | 346     |          |   |   | 477           |   |   |          | 1,208   |   |   |   | 553 |   |
| Other, net                                                    |          |   | (1,716  | )             |   |   | (31           | )      |   |          | (2,677  | ) |   |   | (90 | ) |
|     Total costs and expenses              |          |   | 127,723 |          |   |   | 138,860       |   |   |          | 306,684 |   |   |   | 328,621 |   |
| Loss before income taxes                                      |          |   | (5,847  | )             |   |   | (7,894        | )      |   |          | (15,555 | ) |   |   | (15,255 | ) |
| Provision for income taxes                                    |          |   | -       |          |   |   | (141          | )      |   |          | -       |   |   |   | (322 | ) |
| Net loss                                                      |          |   | (5,847  | )             |   |   | (8,035        | )      |   |          | (15,555 | ) |   |   | (15,577 | ) |
| Less: net earnings attributable to noncontrolling interests   |          |   | 33      |          |   |   | 30            |   |   |          | 79      |   |   |   | 76 |   |
| Net loss attributable to Perkins & Marie Callender's Inc. |          | $      | (5,880  | )             |   |   | (8,065        | )      |   |          | (15,634 | ) |   |   | (15,653 | ) |

----

Table of Contents 

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                               |   | July 12,    |    |   | December 28, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|--------------|--------|
|                                                                                                                                                               |   | 2009        |    |   | 2008         |   |
| ASSETS                                                                                                                                                             |   | (Unaudited) |    |   |         |   |
|                                                                                                                                                               |   |        |    |   |         |   |
| CURRENT ASSETS:                                                                                                                                                    |   |        |    |   |         |   |
| Cash and cash equivalents                                                                                                                                          |   | $           | 2,436   |   |         |   | 4,613 |   |
| Restricted cash                                                                                                                                                    |   |        | 7,400   |   |         |   | 10,140 |   |
| Receivables, less allowances for doubtful accounts of $1,001    and $954 in 2009 and 2008, respectively                                        |   |        | 16,427  |   |         |   | 21,386 |   |
| Inventories                                                                                                                                                        |   |        | 12,438  |   |         |   | 12,300 |   |
| Prepaid expenses and other current assets                                                                                                                          |   |        | 5,185   |   |         |   | 2,996 |   |
|      Total current assets                                                                                                                 |   |        | 43,886  |   |         |   | 51,435 |   |
|                                                                                                                                                               |   |        |    |   |         |   |   |   |
| PROPERTY AND EQUIPMENT, net of accumulated   depreciation and amortization of $133,468 and $125,951 in   2009 and 2008, respectively |   |        | 84,471  |   |         |   | 93,500 |   |
| INVESTMENT IN UNCONSOLIDATED PARTNERSHIP                                                                                                                           |   |        | 40      |   |         |   | 48 |   |
| GOODWILL                                                                                                                                                           |   |        | 9,836   |   |         |   | 9,836 |   |
| INTANGIBLE ASSETS, net of accumulated amortization of   $21,232 and $19,963 in 2009 and 2008, respectively                                          |   |        | 149,578 |   |         |   | 150,847 |   |
| OTHER ASSETS                                                                                                                                                       |   |        | 17,138  |   |         |   | 17,842 |   |
| TOTAL ASSETS                                                                                                                                                       |   | $           | 304,949 |   |         |   | 323,508 |   |

----

Table of Contents 

|                                                                     |   |  July 12, |     |   |  December 28, |   |
|--------------------------------------------------------------------------|--------|----------------|----------|--------|--------------------|--------|
|                                                                     |   |  2009     |     |   |  2008         |   |
| LIABILITIES AND EQUITY (DEFICIT)                                         |   | (Unaudited)    |     |   |               |   |
|                                                                     |   |           |     |   |               |   |
| CURRENT LIABILITIES:                                                     |   |           |     |   |               |   |
|  Accounts payable                                                   |   | $              | 13,008   |   |               |   | 18,295 |   |
|  Accrued expenses                                                   |   |           | 40,206   |   |               |   | 47,040 |   |
|  Franchise advertising contributions                                |   |           | 5,881    |   |               |   | 5,316 |   |
|  Current maturities of long-term debt and capital lease obligations |   |           | 368      |   |               |   | 382 |   |
|      Total current liabilities                  |   |           | 59,463   |   |               |   | 71,033 |   |
|                                                                     |   |           |     |   |               |   |   |   |
| LONG-TERM DEBT, less current maturities                                  |   |           | 322,882  |   |               |   | 316,534 |   |
| CAPITAL LEASE OBLIGATIONS, less current maturities                       |   |           | 13,506   |   |               |   | 13,715 |   |
| DEFERRED RENT                                                            |   |           | 16,094   |   |               |   | 15,343 |   |
| OTHER LIABILITIES                                                        |   |           | 19,464   |   |               |   | 17,741 |   |
|                                                                     |   |           |     |   |               |   |   |   |
| EQUITY (DEFICIT):                                                        |   |           |     |   |               |   |   |   |
| Common stock, $.01 par value; 100,000 shares authorized;                 |   |           |     |   |               |   |   |   |
|      10,820 issued and outstanding              |   |           | 1        |   |               |   | 1 |   |
| Additional paid-in capital                                               |   |           | 149,851  |   |               |   | 149,851 |   |
| Accumulated other comprehensive income (loss)                            |   |           | 20       |   |               |   | (4 | ) |
| Accumulated deficit                                                      |   |           | (276,555 | )      |               |   | (260,921 | ) |
|      Total stockholder's investment (deficit)   |   |           | (126,683 | )      |               |   | (111,073 | ) |
| Noncontrolling interests                                                 |   |           | 223      |   |               |   | 215 |   |
|      Total equity (deficit)                     |   |           | (126,460 | )      |               |   | (110,858 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                   |   | $              | 304,949  |   |               |   | 323,508 |   |

----

Table of Contents 

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                           |   | Year-to-Date  |    |   | Year-to-Date  |   |
|----------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                                           |   | Ended         |    |   | Ended         |   |
|                                                           |   | July 12, 2009 |    |   | July 13, 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                          |   |          |    |   |          |   |
| Net loss                                                       |   | $             | (15,555 | )      |          |   | (15,577 | ) |
|                                                           |   |          |    |   |          |   |   |   |
| Adjustments to reconcile net loss to net cash used in          |   |          |    |   |          |   |   |   |
|  operating activities:                                    |   |          |    |   |          |   |   |   |
|   Depreciation and amortization                      |   |          | 12,913  |   |          |   | 13,370 |   |
|   Asset impairments                                  |   |          | 434     |   |          |   | 517 |   |
|   Amortization of debt discount                      |   |          | 829     |   |          |   | 178 |   |
|   Other non-cash income and expense items            |   |          | (2,344  | )      |          |   | (180 | ) |
|   Loss on disposition of assets                      |   |          | 774     |   |          |   | 36 |   |
|   Equity in net loss of unconsolidated partnership   |   |          | 8       |   |          |   | 10 |   |
|   Net changes in operating assets and liabilities    |   |          | (493    | )      |          |   | 1,107 |   |
|   Total adjustments                                  |   |          | 12,121  |   |          |   | 15,038 |   |
| Net cash used in operating activities                          |   |          | (3,434  | )      |          |   | (539 | ) |
|                                                           |   |          |    |   |          |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                          |   |          |    |   |          |   |   |   |
| Purchases of property and equipment                            |   |          | (4,316  | )      |          |   | (11,666 | ) |
| Proceeds from sale of assets                                   |   |          | 490     |   |          |   | - |   |
| Net cash used in investing activities                          |   |          | (3,826  | )      |          |   | (11,666 | ) |
|                                                           |   |          |    |   |          |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                          |   |          |    |   |          |   |   |   |
| Proceeds from terminated revolver                              |   |          | -       |   |          |   | 21,200 |   |
| Repayment of terminated revolver                               |   |          | -       |   |          |   | (25,000 | ) |
| Proceeds from Revolver                                         |   |          | 18,248  |   |          |   | - |   |
| Repayment of Revolver                                          |   |          | (12,719 | )      |          |   | - |   |
| Repayment of term loan                                         |   |          | -       |   |          |   | (750 | ) |
| Repayment of capital lease obligations                         |   |          | (223    | )      |          |   | (242 | ) |
| Repayment of other debt                                        |   |          | (10     | )      |          |   | (10 | ) |
| Debt financing costs                                           |   |          | (142    | )      |          |   | (1,056 | ) |
| Lessor financing of new restaurants                            |   |          | -       |   |          |   | 2,286 |   |
| Distributions to noncontrolling interest holders               |   |          | (71     | )      |          |   | (224 | ) |
| Repurchase of equity ownership units in P&MC's Holding LLC |   |          | -       |   |          |   | (185 | ) |
| Net cash provided by (used in) financing activities            |   |          | 5,083   |   |          |   | (3,981 | ) |
|                                                           |   |          |    |   |          |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                      |   |          | (2,177  | )      |          |   | (16,186 | ) |
|                                                           |   |          |    |   |          |   |   |   |
| CASH AND CASH EQUIVALENTS:                                     |   |          |    |   |          |   |   |   |
|   Balance, beginning of period                       |   |          | 4,613   |   |          |   | 19,032 |   |
|   Balance, end of period                             |   | $             | 2,436   |   |          |   | 2,846 |   |

----

Table of Contents 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

----

Table of Contents 

----

Table of Contents 

|        |   |   | Quarter       |   |    | Quarter       |   |   | Year-to-Date  |   |   | Year-to-Date  |    |
|-------------|--------|--------|---------------|--------|---------|---------------|--------|--------|---------------|--------|--------|---------------|---------|
| # of        |   |   | Ended         |   |    | Ended         |   |   | Ended         |   |   | Ended         |    |
| Restaurants |   |   | July 12, 2009 |   |    | July 13, 2008 |   |   | July 12, 2009 |   |   | July 13, 2008 |    |
|        |   |   |          |   |    |          |   |   |          |   |   |          |    |
|        | 40     |   |          | $      | 449,000 |          |   |   | 473,000       |   |   |          | 999,000 |   |   |   | 1,055,000 |   |
|        | 27     |   |          |   | 337,000 |          |   |   | 354,000       |   |   |          | 763,000 |   |   |   | 783,000 |   |
|        | 21     |   |          |   | 342,000 |          |   |   | 363,000       |   |   |          | 777,000 |   |   |   | 820,000 |   |

|        |   |   | Quarter       |   |    | Quarter       |   |   | Year-to-Date  |   |   | Year-to-Date  |    |
|-------------|--------|--------|---------------|--------|---------|---------------|--------|--------|---------------|--------|--------|---------------|---------|
| # of        |   |   | Ended         |   |    | Ended         |   |   | Ended         |   |   | Ended         |    |
| Restaurants |   |   | July 12, 2009 |   |    | July 13, 2008 |   |   | July 12, 2009 |   |   | July 13, 2008 |    |
|        |   |   |          |   |    |          |   |   |          |   |   |          |    |
|        | 5      |   |          | $      | 219,000 |          |   |   | 128,000       |   |   |          | 369,000 |   |   |   | 313,000 |   |
|        | 4      |   |          |   | 201,000 |          |   |   | 111,000       |   |   |          | 318,000 |   |   |   | 268,000 |   |
|        | 4      |   |          |   | 139,000 |          |   |   | 74,000        |   |   |          | 219,000 |   |   |   | 172,000 |   |

|                                                       |   | Year-to-Date  |   |   | Year-to-Date  |   |
|------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|
|                                                       |   | Ended         |   |   | Ended         |   |
|                                                       |   | July 12, 2009 |   |   | July 13, 2008 |   |
| Decrease (increase)  in:                         |   |          |   |   |          |   |
|   Restricted cash                                |   | $             | 2,100  |   |          |   | - |   |
|   Receivables                                    |   |          | 4,874  |   |          |   | (160 | ) |
|   Inventories                                    |   |          | (138   | )      |          |   | (912 | ) |
|   Prepaid expenses and other current assets      |   |          | (2,189 | )      |          |   | (155 | ) |
|   Other assets                                   |   |          | 854    |   |          |   | 1,642 |   |
|                                                       |   |          |   |   |          |   |   |   |
| Increase (decrease) in:                                    |   |          |   |   |          |   |   |   |
|   Accounts payable                               |   |          | (5,287 | )      |          |   | 129 |   |
|   Accrued expenses and other current liabilities |   |          | (3,181 | )      |          |   | 654 |   |
|   Other liabilities                              |   |          | 2,474  |   |          |   | (91 | ) |
| Net changes in operating assets and liabilities            |   | $             | (493   | )      |          |   | 1,107 |   |

----

Table of Contents 

|                             |   | July 12,2009 |    |   | December 28,2008 |   |
|---------------------------------------|--------|--------------|---------|--------|------------------|--------|
| Amortizing intangible assets:         |   |         |    |   |             |   |
| Franchise agreements                  |   | $            | 35,000  |   |             |   | 35,000 |   |
| Customer relationships                |   |         | 13,300  |   |             |   | 13,300 |   |
| Acquired franchise rights             |   |         | 11,076  |   |             |   | 11,076 |   |
| Design prototype                      |   |         | 834     |   |             |   | 834 |   |
| Subtotal                              |   |         | 60,210  |   |             |   | 60,210 |   |
| Less — accumulated amortization |   |         | (21,232 | )      |             |   | (19,963 | ) |
| Total amortizing intangible assets    |   |         | 38,978  |   |             |   | 40,247 |   |
| Nonamortizing intangible asset:       |   |         |    |   |             |   |   |   |
| Tradenames                            |   |         | 110,600 |   |             |   | 110,600 |   |
| Total intangible assets               |   | $            | 149,578 |   |             |   | 150,847 |   |

|                                  | July 12,2009 |   |   | December 28,2008 |   |
|---------------------------------------|--------------|--------|--------|------------------|--------|
| Payroll and related benefits          |         | $      | 14,596 |             |   |   | 15,017 |   |
| Interest                              |         |   | 7,574  |             |   |   | 9,634 |   |
| Gift cards and gift certificates      |         |   | 3,044  |             |   |   | 7,446 |   |
| Property, real estate and sales taxes |         |   | 5,070  |             |   |   | 4,118 |   |
| Insurance                             |         |   | 2,077  |             |   |   | 1,874 |   |
| Advertising                           |         |   | 1,428  |             |   |   | 978 |   |
| Other                                 |         |   | 6,417  |             |   |   | 7,973 |   |
| Total accrued expenses                |         | $      | 40,206 |             |   |   | 47,040 |   |

----

Table of Contents 

|                  |   | Quarter       |    |    | Quarter       |   |    | Year-to-Date  |   |               | Year-to-Date  |   |
|-----------------------|--------|---------------|---------|---------|---------------|--------|---------|---------------|--------|--------------------|---------------|--------|
|                  |   | Ended         |    |    | Ended         |   |    | Ended         |   |               | Ended         |   |
| Revenues              |   | July 12, 2009 |    |    | July 13, 2008 |   |    | July 12, 2009 |   |               | July 13, 2008 |   |
|                  |   |          |    |    |          |   |    |          |   |               |          |   |
| Restaurant operations |   | $             | 106,495 |    |          |   | 114,353 |          |   |               | 255,723       |   |   |   | 273,387 |   |
| Franchise operations  |   |          | 5,305   |    |          |   | 5,737   |          |   |               | 12,249        |   |   |   | 13,169 |   |
| Foxtail               |   |          | 12,942  |    |          |   | 13,689  |          |   |               | 30,504        |   |   |   | 33,465 |   |
| Intersegment revenue  |   |          | (4,376  | )       |          |   | (4,088  | )             |   |               | (10,289       | )      |   |   | (9,431 | ) |
| Other                 |   |          | 1,510   |    |          |   | 1,275   |          |   |               | 2,942         |   |   |   | 2,776 |   |
| Total                 |   | $             | 121,876 |    |          |   | 130,966 |          |   |               | 291,129       |   |   |   | 313,366 |   |
|                  |   |          |    |    |          |   |    |          |   |               |          |   |   |   |   |   |
| Segment profit (loss) |   |          |    |    |          |   |    |          |   |               |          |   |   |   |   |   |
|                  |   |          |    |    |          |   |    |          |   |               |          |   |   |   |   |   |
| Restaurant operations |   |          | 5,335   |    |          |   | 5,415   |          |   |               | 14,411        |   |   |   | 13,605 |   |
| Franchise operations  |   |          | 4,840   |    |          |   | 5,263   |          |   |               | 11,269        |   |   |   | 12,084 |   |
| Foxtail               |   |          | 1,164   |    |          |   | (1,809  | )             |   |               | 1,323         |   |   |   | (1,885 | ) |
| Other                 |   |          | (17,219 | )       |          |   | (16,934 | )             |   |               | (42,637       | )      |   |   | (39,457 | ) |
| Total                 |   | $             | (5,880  | )       |          |   | (8,065  | )             |   |               | (15,634       | )      |   |   | (15,653 | ) |
|                  |   |          |    |    |          |   |    |          |   |               |          |   |   |   |   |   |
| Segment assets        |   |          |    |    |          |   |    |          |   | July 12, 2009 |          |   | December 28, 2008 |   |
|                  |   |          |    |    |          |   |    |          |   |               |          |   |   |   |   |   |
| Restaurant operations |   |          |    | 124,370 |          |   |    | 131,135       |   |
| Franchise operations  |   |          |    | 102,302 |          |   |    | 102,719       |   |
| Foxtail               |   |          |    | 36,025  |          |   |    | 37,575        |   |
| Other                 |   |          |    | 42,252  |          |   |    | 52,079        |   |
| Total                 |   |          | $       | 304,949 |          |   |    | 323,508       |   |

|                                                  |   | Quarter       |   |   | Quarter       |   |   | Year-to-Date  |   |   | Year-to-Date  |   |
|-------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|--------|---------------|--------|--------|---------------|--------|
|                                                  |   | Ended         |   |   | Ended         |   |   | Ended         |   |   | Ended         |   |
|                                                  |   | July 12, 2009 |   |   | July 13, 2008 |   |   | July 12, 2009 |   |   | July 13, 2008 |   |
| General and administrative expenses                   |   | $             | 9,079  |   |          |   | 8,717  |          |   |   | 21,229        |   |   |   | 21,102 |   |
| Depreciation and amortization expenses                |   |          | 784    |   |          |   | 773    |          |   |   | 1,821         |   |   |   | 1,784 |   |
| Interest expense, net                                 |   |          | 10,130 |   |          |   | 8,026  |          |   |   | 23,745        |   |   |   | 18,303 |   |
| Loss on disposition of assets, net                    |   |          | 114    |   |          |   | 192    |          |   |   | 774           |   |   |   | 36 |   |
| Asset write-down                                      |   |          | 232    |   |          |   | 285    |          |   |   | 434           |   |   |   | 517 |   |
| Provision for income taxes                            |   |          | -      |   |          |   | 141    |          |   |   | -             |   |   |   | 322 |   |
| Net earnings attributable to noncontrolling interests |   |          | 33     |   |          |   | 30     |          |   |   | 79            |   |   |   | 76 |   |
| Licensing revenue                                     |   |          | (1,448 | )      |          |   | (1,204 | )             |   |   | (2,808        | )      |   |   | (2,621 | ) |
| Other                                                 |   |          | (1,705 | )      |          |   | (26    | )             |   |   | (2,637        | )      |   |   | (62 | ) |
| Total other segment loss                              |   | $             | 17,219 |   |          |   | 16,934 |          |   |   | 42,637        |   |   |   | 39,457 |   |

----

Table of Contents 

----

Table of Contents 

----

Table of Contents 

----

Table of Contents 

|                                                             |   | Year-to-Date Ended July 12, 2009 |     |   | Year-to-Date Ended July 13, 2008 |   |
|------------------------------------------------------------------|--------|----------------------------------|----------|--------|----------------------------------|--------|
|                                                             |   | Total                            |     |   |                             |   |   |   |   |   | Total |   |   |   |   |   |   |   |
|                                                             |   | Stockholder's                    |     |   |                             |   |   | Total |   |   | Stockholder's |   |   |   |   |   | Total |   |
|                                                             |   | Investment (Deficit)             |     |   | NoncontrollingInterests          |   |   | Equity (Deficit) |   |   | Investment (Deficit) |   |   | NoncontrollingInterests |   |   | Equity (Deficit) |   |
|                                                             |   |                             |     |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                     |   | $                                | (111,073 | )      |                             |   | 215 |   |   |   | (110,858 | ) |   |   | (69,958 | ) |   |   | 333 |   |   |   | (69,625 | ) |
|                                                             |   |                             |     |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution of equity ownership units in P&MC's Holding LLC |   |                             | -   |   |                             |   | -  |   |   |   | - |   |   |   | (185 | ) |   |   | -  |   |   |   | (185 | ) |
|                                                             |   |                             |     |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to noncontrolling interest holders                 |   |                             | -   |   |                             |   | (71 | ) |   |   | (71 | ) |   |   | -  |   |   |   | (224 | ) |   |   | (224 | ) |
|                                                             |   |                             |     |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) earnings                                              |   |                             | (15,634  | )      |                             |   | 79 |   |   |   | (15,555 | ) |   |   | (15,653 | ) |   |   | 76 |   |   |   | (15,577 | ) |
| Currency translation adjustment                                  |   |                             | 24       |   |                             |   |   |   |   |   | 24 |   |   |   | (8 | ) |   |   |   |   |   |   | (8 | ) |
| Total comprehensive loss                                         |   |                             |     |   |                             |   |   |   |   |   | (15,531 | ) |   |   |   |   |   |   |   |   |   |   | (15,585 | ) |
| Balance, end of period                                           |   | $                                | (126,683 | )      |                             |   | 223 |   |   |   | (126,460 | ) |   |   | (85,804 | ) |   |   | 185 |   |   |   | (85,619 | ) |

----

Table of Contents 

| Consolidating Statement of Operations for the Quarter ended July 12, 2009 (unaudited; in thousands): |   |          |   |   |
|------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|
|                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |          |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                 |   | Parent Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                            |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                           |   | $             | 71,865 |   |   |   | 37,443 |   |   |   | 5,753 |   |   |   | - |   |   |   | 115,061 |   |
| Franchise and other revenue                                                                          |   |          | 4,608  |   |   |   | 2,207 |   |   |   | - |   |   |   | - |   |   |   | 6,815 |   |
|    Total revenues                                                                     |   |          | 76,473 |   |   |   | 39,650 |   |   |   | 5,753 |   |   |   | - |   |   |   | 121,876 |   |
|                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                          |   |          | 18,918 |   |   |   | 9,265 |   |   |   | 2,118 |   |   |   | - |   |   |   | 30,301 |   |
|    Labor and benefits                                                                 |   |          | 24,278 |   |   |   | 15,136 |   |   |   | 1,490 |   |   |   | - |   |   |   | 40,904 |   |
|    Operating expenses                                                                 |   |          | 18,407 |   |   |   | 11,511 |   |   |   | 2,154 |   |   |   | - |   |   |   | 32,072 |   |
| General and administrative                                                                           |   |          | 8,732  |   |   |   | 1,397 |   |   |   | - |   |   |   | - |   |   |   | 10,129 |   |
| Depreciation and amortization                                                                        |   |          | 4,018  |   |   |   | 1,402 |   |   |   | 137 |   |   |   | - |   |   |   | 5,557 |   |
| Interest, net                                                                                        |   |          | 9,915  |   |   |   | 215 |   |   |   | - |   |   |   | - |   |   |   | 10,130 |   |
| Asset impairments and closed store expenses                                                          |   |          | 63     |   |   |   | 274 |   |   |   | 9 |   |   |   | - |   |   |   | 346 |   |
| Other, net                                                                                           |   |          | (139   | )      |   |   | (1,577 | ) |   |   | - |   |   |   | - |   |   |   | (1,716 | ) |
|    Total costs and expenses                                                           |   |          | 84,192 |   |   |   | 37,623 |   |   |   | 5,908 |   |   |   | - |   |   |   | 127,723 |   |
| Income (loss) before income taxes                                                                    |   |          | (7,719 | )      |   |   | 2,027 |   |   |   | (155 | ) |   |   | - |   |   |   | (5,847 | ) |
| Provision for income taxes                                                                           |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net (loss) income                                                                                    |   |          | (7,719 | )      |   |   | 2,027 |   |   |   | (155 | ) |   |   | - |   |   |   | (5,847 | ) |
| Less: net earnings attributable to noncontrolling interests                                          |   |          | -      |   |   |   | - |   |   |   | 33 |   |   |   | - |   |   |   | 33 |   |
| Equity in earning (loss) of subsidiaries                                                             |   |          | 1,872  |   |   |   | - |   |   |   | - |   |   |   | (1,872 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                               |   | $             | (5,847 | )      |   |   | 2,027 |   |   |   | (188 | ) |   |   | (1,872 | ) |   |   | (5,880 | ) |

----

Table of Contents 

| Consolidating Statement of Operations for the Quarter ended July 13, 2008 (unaudited; in thousands): |   |          |   |   |
|------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|
|                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |          |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                 |   | Parent Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                            |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                           |   | $             | 78,611 |   |   |   | 39,288 |   |   |   | 6,054 |   |   |   | - |   |   |   | 123,953 |   |
| Franchise and other revenue                                                                          |   |          | 4,840  |   |   |   | 2,173 |   |   |   | - |   |   |   | - |   |   |   | 7,013 |   |
|    Total revenues                                                                     |   |          | 83,451 |   |   |   | 41,461 |   |   |   | 6,054 |   |   |   | - |   |   |   | 130,966 |   |
|                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                          |   |          | 23,378 |   |   |   | 12,152 |   |   |   | 1,629 |   |   |   | - |   |   |   | 37,159 |   |
|    Labor and benefits                                                                 |   |          | 26,698 |   |   |   | 14,369 |   |   |   | 2,132 |   |   |   | - |   |   |   | 43,199 |   |
|    Operating expenses                                                                 |   |          | 20,537 |   |   |   | 11,523 |   |   |   | 2,108 |   |   |   | - |   |   |   | 34,168 |   |
| General and administrative                                                                           |   |          | 8,881  |   |   |   | 1,217 |   |   |   | - |   |   |   | - |   |   |   | 10,098 |   |
| Depreciation and amortization                                                                        |   |          | 4,095  |   |   |   | 1,486 |   |   |   | 183 |   |   |   | - |   |   |   | 5,764 |   |
| Interest, net                                                                                        |   |          | 7,686  |   |   |   | 340 |   |   |   | - |   |   |   | - |   |   |   | 8,026 |   |
| Asset impairments and closed store expenses                                                          |   |          | 175    |   |   |   | 282 |   |   |   | 20 |   |   |   | - |   |   |   | 477 |   |
| Other, net                                                                                           |   |          | (31    | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (31 | ) |
|    Total costs and expenses                                                           |   |          | 91,419 |   |   |   | 41,369 |   |   |   | 6,072 |   |   |   | - |   |   |   | 138,860 |   |
| Income (loss) before income taxes                                                                    |   |          | (7,968 | )      |   |   | 92 |   |   |   | (18 | ) |   |   | - |   |   |   | (7,894 | ) |
| Provision for income taxes                                                                           |   |          | (141   | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (141 | ) |
| Net (loss) income                                                                                    |   |          | (8,109 | )      |   |   | 92 |   |   |   | (18 | ) |   |   | - |   |   |   | (8,035 | ) |
| Less: net earnings attributable to noncontrolling interests                                          |   |          | -      |   |   |   | - |   |   |   | 30 |   |   |   | - |   |   |   | 30 |   |
| Equity in earnings (loss) of subsidiaries                                                            |   |          | 74     |   |   |   | - |   |   |   | - |   |   |   | (74 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                               |   | $             | (8,035 | )      |   |   | 92 |   |   |   | (48 | ) |   |   | (74 | ) |   |   | (8,065 | ) |

----

Table of Contents 

| Consolidating Statement of Operations for the Year-to-Date Period ended July 12, 2009 (unaudited; in thousands): |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                             |   | Parent Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                                       |   | $ | 173,591 |   |   |   | 88,582 |   |   |   | 13,765 |   |   |   | - |   |   |   | 275,938 |   |
| Franchise and other revenue                                                                                      |   |   | 10,391 |   |   |   | 4,800 |   |   |   | - |   |   |   | - |   |   |   | 15,191 |   |
|    Total revenues                                                                                 |   |   | 183,982 |   |   |   | 93,382 |   |   |   | 13,765 |   |   |   | - |   |   |   | 291,129 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                                      |   |   | 45,763 |   |   |   | 23,884 |   |   |   | 3,628 |   |   |   | - |   |   |   | 73,275 |   |
|    Labor and benefits                                                                             |   |   | 57,745 |   |   |   | 33,494 |   |   |   | 4,990 |   |   |   | - |   |   |   | 96,229 |   |
|    Operating expenses                                                                             |   |   | 45,778 |   |   |   | 26,977 |   |   |   | 5,018 |   |   |   | - |   |   |   | 77,773 |   |
| General and administrative                                                                                       |   |   | 21,080 |   |   |   | 3,138 |   |   |   | - |   |   |   | - |   |   |   | 24,218 |   |
| Depreciation and amortization                                                                                    |   |   | 9,454 |   |   |   | 3,130 |   |   |   | 329 |   |   |   | - |   |   |   | 12,913 |   |
| Interest, net                                                                                                    |   |   | 23,296 |   |   |   | 449 |   |   |   | - |   |   |   | - |   |   |   | 23,745 |   |
| Asset impairments and closed store expenses                                                                      |   |   | 824 |   |   |   | 295 |   |   |   | 89 |   |   |   | - |   |   |   | 1,208 |   |
| Other, net                                                                                                       |   |   | (1,101 | ) |   |   | (1,576 | ) |   |   | - |   |   |   | - |   |   |   | (2,677 | ) |
|    Total costs and expenses                                                                       |   |   | 202,839 |   |   |   | 89,791 |   |   |   | 14,054 |   |   |   | - |   |   |   | 306,684 |   |
| Income (loss) before income taxes                                                                                |   |   | (18,857 | ) |   |   | 3,591 |   |   |   | (289 | ) |   |   | - |   |   |   | (15,555 | ) |
| Provision for income taxes                                                                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net (loss) income                                                                                                |   |   | (18,857 | ) |   |   | 3,591 |   |   |   | (289 | ) |   |   | - |   |   |   | (15,555 | ) |
| Less: net earnings attributable to noncontrolling interests                                                      |   |   | - |   |   |   | - |   |   |   | 79 |   |   |   | - |   |   |   | 79 |   |
| Equity in earnings (loss) of subsidiaries                                                                        |   |   | 3,302 |   |   |   | - |   |   |   | - |   |   |   | (3,302 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                           |   | $ | (15,555 | ) |   |   | 3,591 |   |   |   | (368 | ) |   |   | (3,302 | ) |   |   | (15,634 | ) |

----

Table of Contents 

| Consolidating Statement of Operations for the Year-to-Date Period ended July 13, 2008 (unaudited; in thousands): |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                             |   | Parent Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                                       |   | $ | 186,920 |   |   |   | 95,704 |   |   |   | 14,797 |   |   |   | - |   |   |   | 297,421 |   |
| Franchise and other revenue                                                                                      |   |   | 10,876 |   |   |   | 5,069 |   |   |   | - |   |   |   | - |   |   |   | 15,945 |   |
|    Total revenues                                                                                 |   |   | 197,796 |   |   |   | 100,773 |   |   |   | 14,797 |   |   |   | - |   |   |   | 313,366 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                                      |   |   | 54,366 |   |   |   | 29,106 |   |   |   | 4,089 |   |   |   | - |   |   |   | 87,561 |   |
|    Labor and benefits                                                                             |   |   | 63,013 |   |   |   | 34,521 |   |   |   | 5,154 |   |   |   | - |   |   |   | 102,688 |   |
|    Operating expenses                                                                             |   |   | 48,826 |   |   |   | 27,252 |   |   |   | 5,043 |   |   |   | - |   |   |   | 81,121 |   |
| General and administrative                                                                                       |   |   | 22,035 |   |   |   | 3,080 |   |   |   | - |   |   |   | - |   |   |   | 25,115 |   |
| Depreciation and amortization                                                                                    |   |   | 9,521 |   |   |   | 3,466 |   |   |   | 383 |   |   |   | - |   |   |   | 13,370 |   |
| Interest, net                                                                                                    |   |   | 17,680 |   |   |   | 623 |   |   |   | - |   |   |   | - |   |   |   | 18,303 |   |
| Asset impairments and closed store expenses                                                                      |   |   | 319 |   |   |   | 204 |   |   |   | 30 |   |   |   | - |   |   |   | 553 |   |
| Other, net                                                                                                       |   |   | (90 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (90 | ) |
|    Total costs and expenses                                                                       |   |   | 215,670 |   |   |   | 98,252 |   |   |   | 14,699 |   |   |   | - |   |   |   | 328,621 |   |
| Income (loss) before income taxes                                                                                |   |   | (17,874 | ) |   |   | 2,521 |   |   |   | 98 |   |   |   | - |   |   |   | (15,255 | ) |
| Provision for income taxes                                                                                       |   |   | (322 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (322 | ) |
| Net (loss) income                                                                                                |   |   | (18,196 | ) |   |   | 2,521 |   |   |   | 98 |   |   |   | - |   |   |   | (15,577 | ) |
| Less: net earnings attributable to noncontrolling interests                                                      |   |   | - |   |   |   | - |   |   |   | 76 |   |   |   | - |   |   |   | 76 |   |
| Equity in earnings (loss) of subsidiaries                                                                        |   |   | 2,619 |   |   |   | - |   |   |   | - |   |   |   | (2,619 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                           |   | $ | (15,577 | ) |   |   | 2,521 |   |   |   | 22 |   |   |   | (2,619 | ) |   |   | (15,653 | ) |

----

Table of Contents 

| Consolidating Balance Sheet as of July 12, 2009 (unaudited; in thousands):          |   |          |     |   |
|-------------------------------------------------------------------------------------|--------|---------------|----------|--------|
|                                                                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |          |     |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                |   | Parent Issuer |     |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
| ASSETS                                                                              |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                     |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $             | 1,718    |   |   |   | 49 |   |   |   | 669 |   |   |   | - |   |   |   | 2,436 |   |
| Restricted cash                                                                     |   |          | 7,400    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,400 |   |
| Receivables, less allowances for   doubtful accounts                 |   |          | 11,073   |   |   |   | 5,314 |   |   |   | 40 |   |   |   | - |   |   |   | 16,427 |   |
| Inventories                                                                         |   |          | 9,172    |   |   |   | 3,076 |   |   |   | 190 |   |   |   | - |   |   |   | 12,438 |   |
| Prepaid expenses and other current assets                                           |   |          | 4,228    |   |   |   | 941 |   |   |   | 16 |   |   |   | - |   |   |   | 5,185 |   |
|      Total current assets                                  |   |          | 33,591   |   |   |   | 9,380 |   |   |   | 915 |   |   |   | - |   |   |   | 43,886 |   |
|                                                                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |          | 57,615   |   |   |   | 24,589 |   |   |   | 2,267 |   |   |   | - |   |   |   | 84,471 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |          | -        |   |   |   | 31 |   |   |   | 9 |   |   |   | - |   |   |   | 40 |   |
| GOODWILL                                                                            |   |          | 9,836    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,836 |   |
| INTANGIBLE ASSETS, net                                                              |   |          | 149,442  |   |   |   | 136 |   |   |   | - |   |   |   | - |   |   |   | 149,578 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |          | (82,131  | )      |   |   | - |   |   |   | - |   |   |   | 82,131 |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |          | 85,247   |   |   |   | - |   |   |   | - |   |   |   | (85,247 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |          | 15,378   |   |   |   | 1,550 |   |   |   | 210 |   |   |   | - |   |   |   | 17,138 |   |
| TOTAL ASSETS                                                                        |   | $             | 268,978  |   |   |   | 35,686 |   |   |   | 3,401 |   |   |   | (3,116 | ) |   |   | 304,949 |   |
|                                                                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                    |   |          | 7,701    |   |   |   | 4,932 |   |   |   | 375 |   |   |   | - |   |   |   | 13,008 |   |
| Accrued expenses                                                                    |   |          | 28,928   |   |   |   | 10,059 |   |   |   | 1,219 |   |   |   | - |   |   |   | 40,206 |   |
| Franchise advertising contributions                                                 |   |          | 5,881    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,881 |   |
| Current maturities of long-term debt and   capital lease obligations |   |          | 177      |   |   |   | 191 |   |   |   | - |   |   |   | - |   |   |   | 368 |   |
|      Total current liabilities                             |   |          | 42,687   |   |   |   | 15,182 |   |   |   | 1,594 |   |   |   | - |   |   |   | 59,463 |   |
|                                                                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |          | 322,874  |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 322,882 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |          | 8,171    |   |   |   | 5,335 |   |   |   | - |   |   |   | - |   |   |   | 13,506 |   |
| DEFERRED RENT                                                                       |   |          | 11,189   |   |   |   | 4,836 |   |   |   | 69 |   |   |   | - |   |   |   | 16,094 |   |
| OTHER LIABILITIES                                                                   |   |          | 10,740   |   |   |   | 8,724 |   |   |   | - |   |   |   | - |   |   |   | 19,464 |   |
| DUE TO PARENT                                                                       |   |          | -        |   |   |   | 84,080 |   |   |   | 1,167 |   |   |   | (85,247 | ) |   |   | - |   |
|                                                                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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                                              |   |          | 20       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20 |   |
| Accumulated (deficit) earnings                                                      |   |          | (276,555 | )      |   |   | (154,957 | ) |   |   | 348 |   |   |   | 154,609 |   |   |   | (276,555 | ) |
|   Total stockholder's investment (deficit)                                |   |          | (126,683 | )      |   |   | (82,479 | ) |   |   | 348 |   |   |   | 82,131 |   |   |   | (126,683 | ) |
| Noncontrolling interests                                                            |   |          | -        |   |   |   | - |   |   |   | 223 |   |   |   | - |   |   |   | 223 |   |
|    Total equity (deficit)                                            |   |          | (126,683 | )      |   |   | (82,479 | ) |   |   | 571 |   |   |   | 82,131 |   |   |   | (126,460 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $             | 268,978  |   |   |   | 35,686 |   |   |   | 3,401 |   |   |   | (3,116 | ) |   |   | 304,949 |   |

----

Table of Contents 

|                                                                                |   |          |     |   |      |   |     |       |   |   |         |   |   |         |    |
|-------------------------------------------------------------------------------------|--------|---------------|----------|--------|-----------|--------|----------|------------|--------|--------|--------------|--------|--------|--------------|---------|
| Consolidating Balance Sheet as of December 28, 2008 (in thousands):                 |   |          |     |   |      |   |     |       |   |   |         |   |
|                                                                                |   |          |     |   |      |   |     |       |   |   |         |   |   |         |    |
|                                                                                |   |          |     |   | Guarantor |   |     | Non-       |   |   |         |   |   | Consolidated |    |
|                                                                                |   | Parent 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, net                                                              |   |          | 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 stockholder's investment (deficit)                                |   |          | (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 |   |

----

Table of Contents 

| Consolidating Statement of Cash Flows for the Year-to-Date Period ended July 12, 2009 (unaudited; in thousands): |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                             |   | Parent Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                                |   | $ | (15,555 | ) |   |   | 3,591 |   |   |   | (289 | ) |   |   | (3,302 | ) |   |   | (15,555 | ) |
| Adjustments to reconcile net (loss) income to net cash                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries                                                                   |   |   | (3,302 | ) |   |   | - |   |   |   | - |   |   |   | 3,302 |   |   |   | - |   |
| Depreciation and amortization                                                                                    |   |   | 9,454 |   |   |   | 3,130 |   |   |   | 329 |   |   |   | - |   |   |   | 12,913 |   |
| Asset impairments                                                                                                |   |   | 131 |   |   |   | 214 |   |   |   | 89 |   |   |   | - |   |   |   | 434 |   |
| Amortization of debt discount                                                                                    |   |   | 829 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 829 |   |
| Other non-cash income and expense items                                                                          |   |   | (982 | ) |   |   | (1,362 | ) |   |   | - |   |   |   | - |   |   |   | (2,344 | ) |
| Loss on disposition of assets                                                                                    |   |   | 693 |   |   |   | 81 |   |   |   | - |   |   |   | - |   |   |   | 774 |   |
| Equity in net loss of unconsolidated partnership                                                                 |   |   | - |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 8 |   |
| Net changes in operating assets and liabilities                                                                  |   |   | 941 |   |   |   | (1,268 | ) |   |   | (166 | ) |   |   | - |   |   |   | (493 | ) |
| Total adjustments                                                                                                |   |   | 7,764 |   |   |   | 803 |   |   |   | 252 |   |   |   | 3,302 |   |   |   | 12,121 |   |
| Net cash (used in) provided by operating activities                                                              |   |   | (7,791 | ) |   |   | 4,394 |   |   |   | (37 | ) |   |   | - |   |   |   | (3,434 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                              |   |   | (2,126 | ) |   |   | (1,628 | ) |   |   | (562 | ) |   |   | - |   |   |   | (4,316 | ) |
| Proceeds from sale of assets                                                                                     |   |   | 483 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 490 |   |
| Net cash used in investing activities                                                                            |   |   | (1,643 | ) |   |   | (1,621 | ) |   |   | (562 | ) |   |   | - |   |   |   | (3,826 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from Revolver                                                                                           |   |   | 18,248 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,248 |   |
| Repayment of Revolver                                                                                            |   |   | (12,719 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,719 | ) |
| Repayment of capital lease obligations                                                                           |   |   | (91 | ) |   |   | (132 | ) |   |   | - |   |   |   | - |   |   |   | (223 | ) |
| Repayment of other debt                                                                                          |   |   | - |   |   |   | (10 | ) |   |   | - |   |   |   | - |   |   |   | (10 | ) |
| Debt financing costs                                                                                             |   |   | (142 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (142 | ) |
| Distributions to noncontrolling interest holders                                                                 |   |   | - |   |   |   | - |   |   |   | (71 | ) |   |   | - |   |   |   | (71 | ) |
| Intercompany financing                                                                                           |   |   | 3,701 |   |   |   | (4,244 | ) |   |   | 543 |   |   |   | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities                                                              |   |   | 8,997 |   |   |   | (4,386 | ) |   |   | 472 |   |   |   | - |   |   |   | 5,083 |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                                                        |   |   | (437 | ) |   |   | (1,613 | ) |   |   | (127 | ) |   |   | - |   |   |   | (2,177 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                                     |   |   | 2,155 |   |   |   | 1,662 |   |   |   | 796 |   |   |   | - |   |   |   | 4,613 |   |
| Balance, end of period                                                                                           |   | $ | 1,718 |   |   |   | 49 |   |   |   | 669 |   |   |   | - |   |   |   | 2,436 |   |

----

Table of Contents 

| Consolidating Statement of Cash Flows for the Year-to-Date Period ended July 13, 2008 (unaudited; in thousands): |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                             |   | Parent Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                                |   | $ | (15,577 | ) |   |   | 2,521 |   |   |   | 98 |   |   |   | (2,619 | ) |   |   | (15,577 | ) |
| Adjustments to reconcile net (loss) income to net cash                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in the (loss) earnings of subsidiaries                                                                    |   |   | (2,619 | ) |   |   | - |   |   |   | - |   |   |   | 2,619 |   |   |   | - |   |
| Depreciation and amortization                                                                                    |   |   | 9,521 |   |   |   | 3,466 |   |   |   | 383 |   |   |   | - |   |   |   | 13,370 |   |
| Asset impairment costs                                                                                           |   |   | 313 |   |   |   | 174 |   |   |   | 30 |   |   |   | - |   |   |   | 517 |   |
| Amortization of debt discount                                                                                    |   |   | 178 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 178 |   |
| Other non-cash income and expense items                                                                          |   |   | (223 | ) |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | (180 | ) |
| Loss (gain) on disposition of assets                                                                             |   |   | 6 |   |   |   | 30 |   |   |   | - |   |   |   | - |   |   |   | 36 |   |
| Equity in net loss of unconsolidated partnerships                                                                |   |   | - |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 10 |   |
| Net changes in operating assets and liabilities                                                                  |   |   | 4,709 |   |   |   | (3,073 | ) |   |   | (529 | ) |   |   | - |   |   |   | 1,107 |   |
| Total adjustments                                                                                                |   |   | 11,885 |   |   |   | 650 |   |   |   | (116 | ) |   |   | 2,619 |   |   |   | 15,038 |   |
| Net cash (used in) provided by operating activities                                                              |   |   | (3,692 | ) |   |   | 3,171 |   |   |   | (18 | ) |   |   | - |   |   |   | (539 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                              |   |   | (9,806 | ) |   |   | (1,690 | ) |   |   | (170 | ) |   |   | - |   |   |   | (11,666 | ) |
| Proceeds from sale of assets                                                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net cash (used in) provided by investing activities                                                              |   |   | (9,806 | ) |   |   | (1,690 | ) |   |   | (170 | ) |   |   | - |   |   |   | (11,666 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from terminated revolver                                                                                |   |   | 21,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,200 |   |
| Repayment of terminated revolver                                                                                 |   |   | (25,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (25,000 | ) |
| Repayment of Term Loan                                                                                           |   |   | (750 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (750 | ) |
| Repayment of capital lease obligations                                                                           |   |   | (83 | ) |   |   | (159 | ) |   |   | - |   |   |   | - |   |   |   | (242 | ) |
| Repayment of other debt                                                                                          |   |   | - |   |   |   | (10 | ) |   |   | - |   |   |   | - |   |   |   | (10 | ) |
| Debt financing costs                                                                                             |   |   | (1,056 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,056 | ) |
| Lessor financing of new restaurants                                                                              |   |   | 2,286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,286 |   |
| Distributions to noncontrolling interest holders                                                                 |   |   | - |   |   |   | - |   |   |   | (224 | ) |   |   | - |   |   |   | (224 | ) |
| Intercompany financing                                                                                           |   |   | 145 |   |   |   | 449 |   |   |   | (594 | ) |   |   | - |   |   |   | - |   |
| Repurchase of equity ownership units in P&MC's Holding LLC                                                   |   |   | (185 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (185 | ) |
| Net cash (used in) provided by financing activities                                                              |   |   | (3,443 | ) |   |   | 280 |   |   |   | (818 | ) |   |   | - |   |   |   | (3,981 | ) |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                             |   |   | (16,941 | ) |   |   | 1,761 |   |   |   | (1,006 | ) |   |   | - |   |   |   | (16,186 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                                     |   |   | 19,391 |   |   |   | 428 |   |   |   | (787 | ) |   |   | - |   |   |   | 19,032 |   |
| Balance, end of period                                                                                           |   | $ | 2,450 |   |   |   | 2,189 |   |   |   | (1,793 | ) |   |   | - |   |   |   | 2,846 |   |

----

Table of Contents 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

----

Table of Contents 

----

Table of Contents 

----

Table of Contents 

|                        |   | Consolidated Results |    |   | Restaurant Operations |   |    | Franchise Operations |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------------|--------|---------|----------------------|--------|
|                        |   | Quarter Ended        |    |   | Quarter Ended         |   |    | Quarter Ended        |   |
|                        |   | July 12, 2009        |    |   | July 13, 2008         |   |    | July 12, 2009        |   |   | July 13, 2008 |   |   | July 12, 2009 |   |   | July 13, 2008 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 119,437 |   |                  |   | 128,042 |                 |   |   | 106,495 |   |   |   | 114,353 |   |   |   | - |   |   |   | - |   |
| Franchise and other revenue |   |                 | 6,815   |   |                  |   | 7,012   |                 |   |   | - |   |   |   | - |   |   |   | 5,305 |   |   |   | 5,737 |   |
| Intersegment revenue        |   |                 | (4,376  | )      |                  |   | (4,088  | )                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total revenues              |   |                 | 121,876 |   |                  |   | 130,966 |                 |   |   | 106,495 |   |   |   | 114,353 |   |   |   | 5,305 |   |   |   | 5,737 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 26.3    | %      |                  |   | 30.0    | %                    |   |   | 25.2 | % |   |   | 27.3 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Labor and benefits          |   |                 | 33.6    | %      |                  |   | 33.0    | %                    |   |   | 36.8 | % |   |   | 36.1 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Operating expenses          |   |                 | 26.3    | %      |                  |   | 26.1    | %                    |   |   | 28.9 | % |   |   | 27.8 | % |   |   | 8.8 | % |   |   | 8.3 | % |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | (5,880  | )      |                  |   | (8,065  | )                    |   |   | 5,335 |   |   |   | 5,415 |   |   |   | 4,840 |   |   |   | 5,263 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | Foxtail (a)          |    |   | Other (b)             |   |    |                 |   |   |   |   |   |   |
|                        |   | Quarter Ended        |    |   | Quarter Ended         |   |    |                 |   |   |   |   |   |   |
|                        |   | July 12, 2009        |    |   | July 13, 2008         |   |    | July 12, 2009        |   |   | July 13, 2008 |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 12,942  |   |                  |   | 13,689  |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Franchise and other revenue |   |                 | -       |   |                  |   | -       |                 |   |   | 1,510 |   |   |   | 1,275 |   |   |   |   |   |   |   |   |   |
| Intersegment revenue        |   |                 | (4,376  | )      |                  |   | (4,088  | )                    |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Total revenues              |   |                 | 8,566   |   |                  |   | 9,601   |                 |   |   | 1,510 |   |   |   | 1,275 |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 55.2    | %      |                  |   | 72.9    | %                    |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |
| Labor and benefits          |   |                 | 13.4    | %      |                  |   | 13.4    | %                    |   |   | 4.7 | % |   |   | 6.0 | % |   |   |   |   |   |   |   |   |
| Operating expenses          |   |                 | 10.5    | %      |                  |   | 13.9    | %                    |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | 1,164   |   |                  |   | (1,809  | )                    |   |   | (17,219 | ) |   |   | (16,934 | ) |   |   |   |   |   |   |   |   |

----

Table of Contents 

|                  |   | Percentage of Total Revenues |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | Quarter                      |   |   | Quarter |   |
|                  |   | Ended                        |   |   | Ended |   |
|                  |   | July 12, 2009                |   |   | July 13, 2008 |   |
|                  |   |                         |   |   |   |   |
| Restaurant operations |   |                         | 87.4   | % |   |   | 87.3 | % |
| Franchise operations  |   |                         | 4.4    | % |   |   | 4.4 | % |
| Foxtail               |   |                         | 7.0    | % |   |   | 7.3 | % |
| Other                 |   |                         | 1.2    | % |   |   | 1.0 | % |
| Total revenues        |   |                         | 100.0  | % |   |   | 100.0 | % |

----

Table of Contents 

----

Table of Contents 

----

Table of Contents 

|                        |   | Consolidated Results |    |   | Restaurant Operations |   |    | Franchise Operations |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------------|--------|---------|----------------------|--------|
|                        |   | Year- to-Date Ended  |    |   | Year- to-Date Ended   |   |    | Year- to-Date Ended  |   |
|                        |   | July 12, 2009        |    |   | July 13, 2008         |   |    | July 12, 2009        |   |   | July 13, 2008 |   |   | July 12, 2009 |   |   | July 13, 2008 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 286,227 |   |                  |   | 306,852 |                 |   |   | 255,722 |   |   |   | 273,387 |   |   |   | - |   |   |   | - |   |
| Franchise and other revenue |   |                 | 15,191  |   |                  |   | 15,945  |                 |   |   | - |   |   |   | - |   |   |   | 12,248 |   |   |   | 13,169 |   |
| Intersegment revenue        |   |                 | (10,289 | )      |                  |   | (9,431  | )                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total revenues              |   |                 | 291,129 |   |                  |   | 313,366 |                 |   |   | 255,722 |   |   |   | 273,387 |   |   |   | 12,248 |   |   |   | 13,169 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 26.6    | %      |                  |   | 29.4    | %                    |   |   | 25.7 | % |   |   | 27.2 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Labor and benefits          |   |                 | 33.1    | %      |                  |   | 32.8    | %                    |   |   | 36.0 | % |   |   | 35.9 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Operating expenses          |   |                 | 26.7    | %      |                  |   | 25.9    | %                    |   |   | 28.8 | % |   |   | 28.0 | % |   |   | 8.0 | % |   |   | 8.2 | % |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | (15,634 | )      |                  |   | (15,653 | )                    |   |   | 14,411 |   |   |   | 13,605 |   |   |   | 11,269 |   |   |   | 12,084 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | Foxtail (a)          |    |   | Other (b)             |   |    |                 |   |   |   |   |   |   |
|                        |   | Year- to-Date Ended  |    |   | Year- to-Date Ended   |   |    |                 |   |   |   |   |   |   |
|                        |   | July 12, 2009        |    |   | July 13, 2008         |   |    | July 12, 2009        |   |   | July 13, 2008 |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 30,505  |   |                  |   | 33,465  |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Franchise and other revenue |   |                 | -       |   |                  |   | -       |                 |   |   | 2,943 |   |   |   | 2,776 |   |   |   |   |   |   |   |   |   |
| Intersegment revenue        |   |                 | (10,289 | )      |                  |   | (9,431  | )                    |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Total revenues              |   |                 | 20,216  |   |                  |   | 24,034  |                 |   |   | 2,943 |   |   |   | 2,776 |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 58.8    | %      |                  |   | 67.5    | %                    |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |
| Labor and benefits          |   |                 | 13.4    | %      |                  |   | 13.2    | %                    |   |   | 5.9 | % |   |   | 6.6 | % |   |   |   |   |   |   |   |   |
| Operating expenses          |   |                 | 10.0    | %      |                  |   | 10.2    | %                    |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | 1,323   |   |                  |   | (1,885  | )                    |   |   | (42,637 | ) |   |   | (39,457 | ) |   |   |   |   |   |   |   |   |

----

Table of Contents 

|                  |   | Percentage of Total Revenues |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | Year-to-Date                 |   |   | Year-to-Date |   |
|                  |   | Ended                        |   |   | Ended |   |
|                  |   | July 12, 2009                |   |   | July 13, 2008 |   |
|                  |   |                         |   |   |   |   |
| Restaurant operations |   |                         | 87.8   | % |   |   | 87.2 | % |
| Franchise operations  |   |                         | 4.2    | % |   |   | 4.2 | % |
| Foxtail               |   |                         | 7.0    | % |   |   | 7.7 | % |
| Other                 |   |                         | 1.0    | % |   |   | 0.9 | % |
| Total revenues        |   |                         | 100.0  | % |   |   | 100.0 | % |

----

Table of Contents 

----

Table of Contents 

----

Table of Contents 

----

Table of Contents 

|                                             |   | Year-to-DateEndedJuly 12, 2009 |   |   | Year-to-DateEndedJuly 13, 2008 |   |
|-------------------------------------------------------|--------|--------------------------------|--------|--------|--------------------------------|--------|
| Cash flows used in operating activities               |   | $                              | (3,434 | )      |                           |   | (539 | ) |
| Cash flows used in investing activities               |   |                           | (3,826 | )      |                           |   | (11,666 | ) |
| Cash flows provided by (used in) financing activities |   |                           | 5,083  |   |                           |   | (3,981 | ) |

|                      |   | Year-to-DateEndedJuly 12, 2009 |   |   | Year-to-DateEndedJuly 13, 2008 |   |
|-------------------------------------|--------|--------------------------------|--------|--------|--------------------------------|--------|
| New restaurants                     |   | $                              | 156    |   |                           |   | 2,146 |   |
| Restaurant improvements             |   |                           | 2,261  |   |                           |   | 4,013 |   |
| Restaurant remodeling and reimaging |   |                           | 1,084  |   |                           |   | 2,304 |   |
| Manufacturing plant improvements    |   |                           | 440    |   |                           |   | 2,277 |   |
| Other                               |   |                           | 375    |   |                           |   | 926 |   |
| Total capital expenditures          |   | $                              | 4,316  |   |                           |   | 11,666 |   |

----

Table of Contents 

----

Table of Contents 

|   | • | the current U.S. economic recession, 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 energy, raw materials, food, supplies and labor; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | 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 financial health of franchisees; |
|--------|---------|---------------------------------------------------------------------|

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

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

----

Table of Contents 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

----

Table of Contents 

ITEM 4. CONTROLS AND PROCEDURES

----

Table of Contents 

PART II — OTHER INFORMATION

ITEM 1. Legal Proceedings

ITEM 1A. Risk Factors

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 3. Defaults Upon Senior Securities

ITEM 4. Submission of Matters to a Vote of Security Holders

ITEM 5. Other Information

ITEM 6. Exhibits

| 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. |

----

Table of Contents 

SIGNATURE

|                  | PERKINS & MARIE CALLENDER’S INC. |
|-----------------------|--------------------------------------------|
|                  |                                       |
| DATE: August 26, 2009 | BY: /s/ Fred T. Grant, Jr.                 |   |
|                  | Fred T. Grant, Jr.                         |
|                  | Chief Financial Officer                    |

----