----

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|   | 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  £ |

----

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TABLE OF CONTENTS

| PART I — FINANCIAL INFORMATION                                                                                                                                     |       Page |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
|  Item 1. Financial Statements:                                                                                                                                      |                                |
|      Consolidated Statements of Operations (Unaudited) – Quarters Ended April 18, 2010 and April 19, 2009                                      | 2                                   |
|  Consolidated Balance Sheets – April 18, 2010 (Unaudited) and December 27, 2009                                                                               | 3                                   |
|             Consolidated Statements of Cash Flows (Unaudited) – Quarters Ended April 18, 2010 and April 19, 2009 | 4                                   |
|  Notes to Consolidated Financial Statements (Unaudited)                                                                                                             | 5                                   |
|  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                | 20                                  |
|  Item 3. Quantitative and Qualitative Disclosures about Market Risk                                                                                                 | 31                                  |
|  Item 4. Controls and Procedures                                                                                                                                    | 31                                  |
|   PART II — OTHER INFORMATION                                                                                                                            |                                |
|  Item 1. Legal Proceedings                                                                                                                                          | 32                                  |
|  Item 1A. Risk Factors                                                                                                                                              | 32                                  |
|  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                | 32                                  |
|  Item 3. Defaults Upon Senior Securities                                                                                                                            | 32                                  |
|  Item 4. Removed and Reserved                                                                                                                                       | 32                                  |
|  Item 5. Other Information                                                                                                                                          | 32                                  |
|  Item 6. Exhibits                                                                                                                                                   | 32                                  |
|   SIGNATURE                                                                                                                                                    | 33                                  |
|  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                                                                                                                       |            |

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Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                          |   | Quarter        |    |   | Quarter        |   |
|---------------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
|                                                          |   | Ended          |    |   | Ended          |   |
|                                                          |   | April 18, 2010 |    |   | April 19, 2009 |   |
| REVENUES:                                                     |   |           |    |   |           |   |
| Food sales                                                    |   | $              | 147,315 |   |           |   | 160,877 |   |
| Franchise and other revenue                                   |   |           | 8,490   |   |           |   | 8,376 |   |
|    Total revenues                              |   |           | 155,805 |   |           |   | 169,253 |   |
| COSTS AND EXPENSES:                                           |   |           |    |   |           |   |   |   |
| Cost of sales (excluding depreciation shown below):           |   |           |    |   |           |   |   |   |
|     Food cost                             |   |           | 37,282  |   |           |   | 42,974 |   |
|     Labor and benefits                    |   |           | 53,362  |   |           |   | 55,325 |   |
|     Operating expenses                    |   |           | 43,735  |   |           |   | 45,701 |   |
| General and administrative                                    |   |           | 14,106  |   |           |   | 14,089 |   |
| Depreciation and amortization                                 |   |           | 6,906   |   |           |   | 7,356 |   |
| Interest, net                                                 |   |           | 13,565  |   |           |   | 13,615 |   |
| Asset impairments and closed store expenses                   |   |           | 1,665   |   |           |   | 862 |   |
| Other, net                                                    |   |           | (218    | )      |           |   | (961 | ) |
|     Total costs and expenses              |   |           | 170,403 |   |           |   | 178,961 |   |
| Loss before income taxes                                      |   |           | (14,598 | )      |           |   | (9,708 | ) |
| Benefit from (provision for) income taxes                     |   |           | -       |   |           |   | - |   |
| Net loss                                                      |   |           | (14,598 | )      |           |   | (9,708 | ) |
| Less: net earnings attributable to non-controlling interests  |   |           | 8       |   |           |   | 46 |   |
| Net loss attributable to Perkins & Marie Callender's Inc. |   | $              | (14,606 | )      |           |   | (9,754 | ) |

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CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                               |   | April 18,   |     |   | December 27, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|----------|--------|--------------|--------|
|                                                                                                                                                               |   | 2010        |     |   | 2009         |   |
| ASSETS                                                                                                                                                             |   | (Unaudited) |     |   |         |   |
| CURRENT ASSETS:                                                                                                                                                    |   |        |     |   |         |   |
| Cash and cash equivalents                                                                                                                                          |   | $           | 2,290    |   |         |   | 4,288 |   |
| Restricted cash                                                                                                                                                    |   |        | 7,147    |   |         |   | 8,110 |   |
| Receivables, less allowances for doubtful accounts of $807    and $829 in 2010 and 2009, respectively                                          |   |        | 14,908   |   |         |   | 18,125 |   |
| Inventories                                                                                                                                                        |   |        | 9,860    |   |         |   | 11,062 |   |
| Prepaid expenses and other current assets                                                                                                                          |   |        | 3,477    |   |         |   | 1,864 |   |
|      Total current assets                                                                                                                 |   |        | 37,682   |   |         |   | 43,449 |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
| PROPERTY AND EQUIPMENT, net of accumulated   depreciation and amortization of $158,049 and $156,898 in   2010 and 2009, respectively |   |        | 68,222   |   |         |   | 75,219 |   |
| INVESTMENT IN UNCONSOLIDATED PARTNERSHIP                                                                                                                           |   |        | 58       |   |         |   | 50 |   |
| GOODWILL                                                                                                                                                           |   |        | 23,100   |   |         |   | 23,100 |   |
| INTANGIBLE ASSETS, net of accumulated amortization of   $20,795 and $20,179 in 2010 and 2009, respectively                                          |   |        | 146,397  |   |         |   | 147,013 |   |
| OTHER ASSETS                                                                                                                                                       |   |        | 15,359   |   |         |   | 16,074 |   |
| TOTAL ASSETS                                                                                                                                                       |   | $           | 290,818  |   |         |   | 304,905 |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
|  LIABILITIES AND DEFICIT                                                                                                                                      |   |        |     |   |         |   |   |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                               |   |        |     |   |         |   |   |   |
| Accounts payable                                                                                                                                                   |   |        | 11,038   |   |         |   | 14,657 |   |
| Accrued expenses                                                                                                                                                   |   |        | 43,676   |   |         |   | 41,605 |   |
| Franchise advertising contributions                                                                                                                                |   |        | 4,783    |   |         |   | 4,327 |   |
| Current maturities of long-term debt and capital lease obligations                                                                                                 |   |        | 419      |   |         |   | 503 |   |
|      Total current liabilities                                                                                                            |   |        | 59,916   |   |         |   | 61,092 |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
| LONG-TERM DEBT, less current maturities                                                                                                                            |   |        | 326,158  |   |         |   | 326,042 |   |
| CAPITAL LEASE OBLIGATIONS, less current maturities                                                                                                                 |   |        | 10,985   |   |         |   | 11,054 |   |
| DEFERRED RENT                                                                                                                                                      |   |        | 17,934   |   |         |   | 17,092 |   |
| OTHER LIABILITIES                                                                                                                                                  |   |        | 23,239   |   |         |   | 22,277 |   |
| DEFERRED INCOME TAXES                                                                                                                                              |   |        | 45,457   |   |         |   |  45,457 |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
| DEFICIT:                                                                                                                                                           |   |        |     |   |         |   |   |   |
| Common stock, $.01 par value; 100,000 shares authorized;                                                                                                           |   |        |     |   |         |   |   |   |
|      10,820 issued and outstanding                                                                                                        |   |        | 1        |   |         |   | 1 |   |
| Additional paid-in capital                                                                                                                                         |   |        | 150,870  |   |         |   | 150,870 |   |
| Accumulated other comprehensive income                                                                                                                             |   |        | 57       |   |         |   | 45 |   |
| Accumulated deficit                                                                                                                                                |   |        | (343,939 | )      |         |   | (329,333 | ) |
|      Total PMCI stockholder's deficit                                                                                                     |   |        | (193,011 | )      |         |   | (178,417 | ) |
| Non-controlling interests                                                                                                                                          |   |        | 140      |   |         |   | 308 |   |
|      Total deficit                                                                                                                        |   |        | (192,871 | )      |         |   | (178,109 | ) |
| TOTAL LIABILITIES AND DEFICIT                                                                                                                                      |   | $           | 290,818  |   |         |   | 304,905 |   |

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CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                  |   | Quarter        |    |   | Quarter        |   |
|-----------------------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
|                                                                  |   | Ended          |    |   | Ended          |   |
|                                                                  |   | April 18, 2010 |    |   | April 19, 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                 |   |           |    |   |           |   |
| Net loss                                                              |   | $              | (14,598 | )      |           |   | (9,708 | ) |
| Adjustments to reconcile net loss to net cash provided by             |   |           |    |   |           |   |   |   |
|  operating activities:                                           |   |           |    |   |           |   |   |   |
|   Depreciation and amortization                             |   |           | 6,906   |   |           |   | 7,356 |   |
|   Asset impairments                                         |   |           | 1,732   |   |           |   | 202 |   |
|   Amortization of debt discount                             |   |           | 541     |   |           |   | 474 |   |
|   Other non-cash income and expense items                   |   |           | (167    | )      |           |   | (709 | ) |
|   Loss (gain) on disposition of assets                      |   |           | (67     | )      |           |   | 660 |   |
|   Equity in net (income) loss of unconsolidated partnership |   |           | (8      | )      |           |   | 10 |   |
|   Net changes in operating assets and liabilities           |   |           | 5,766   |   |           |   | 3,399 |   |
|   Total adjustments                                         |   |           | 14,703  |   |           |   | 11,392 |   |
| Net cash provided by operating activities                             |   |           | 105     |   |           |   | 1,684 |   |
|                                                                  |   |           |    |   |           |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                 |   |           |    |   |           |   |   |   |
| Purchases of property and equipment                                   |   |           | (1,354  | )      |           |   | (2,474 | ) |
| Proceeds from sale of assets                                          |   |           | 5       |   |           |   | 476 |   |
| Net cash used in investing activities                                 |   |           | (1,349  | )      |           |   | (1,998 | ) |
|                                                                  |   |           |    |   |           |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                 |   |           |    |   |           |   |   |   |
| Proceeds from revolving credit facilities                             |   |           | 10,966  |   |           |   | 7,443 |   |
| Repayment of revolving credit facilities                              |   |           | (11,389 | )      |           |   | (8,128 | ) |
| Repayment of capital lease obligations                                |   |           | (149    | )      |           |   | (128 | ) |
| Repayment of other debt                                               |   |           | (6      | )      |           |   | (6 | ) |
| Debt financing costs                                                  |   |           | -       |   |           |   | (127 | ) |
| Distributions to non-controlling interest holders                     |   |           | (176    | )      |           |   | (70 | ) |
| Net cash used in financing activities                                 |   |           | (754    | )      |           |   | (1,016 | ) |
|                                                                  |   |           |    |   |           |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                             |   |           | (1,998  | )      |           |   | (1,330 | ) |
|                                                                  |   |           |    |   |           |   |   |   |
| CASH AND CASH EQUIVALENTS:                                            |   |           |    |   |           |   |   |   |
|   Balance, beginning of period                              |   |           | 4,288   |   |           |   | 4,613 |   |
|   Balance, end of period                                    |   | $              | 2,290   |   |           |   | 3,283 |   |

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

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| # of         |   |   | Quarter        |   |    | # of         |   |   | Quarter        |   |
|--------------|--------|--------|----------------|--------|---------|--------------|--------|--------|----------------|--------|
| Restaurants  |   |   | Ended          |   |    | Restaurants  |   |   | Ended          |   |
|  (2010) |   |   | April 18, 2010 |   |    |  (2009) |   |   | April 19, 2009 |   |
|         |   |   |           |   |    |         |   |   |           |   |   |   |
|         | 39     |   |           | $      | 532,000 |         |   |   | 41             |   |   | $ | 550,000 |   |
|         | 27     |   |           |   | 439,000 |         |   |   | 27             |   |   |   | 426,000 |   |
|         | 21     |   |           |   | 413,000 |         |   |   | 21             |   |   |   | 435,000 |   |

| # of         |   |   | Quarter        |   |          | # of         |   |   | Quarter        |   |
|--------------|--------|--------|----------------|--------|---------------|--------------|--------|--------|----------------|--------|
| Restaurants  |   |   | Ended          |   |          | Restaurants  |   |   | Ended          |   |
|  (2010) |   |   | April 18, 2010 |   |          |  (2009) |   |   | April 19, 2009 |   |
|         |   |   |           |   |          |         |   |   |           |   |   |   |
|         | 4      |   |           | $      | 110,000       |         |   |   | 5              |   |   | $ | 150,000 |   |
|         | 4      |   |           |   | 116,000       |         |   |   | 4              |   |   |   | 117,000 |   |
|         | 4      |   |           |   |   82,000 |         |   |   | 4              |   |   |   |   81,000 |   |

|                                                       |   | Quarter        |   |   | Quarter        |   |
|------------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
|                                                       |   | Ended          |   |   | Ended          |   |
|                                                       |   | April 18, 2010 |   |   | April 19, 2009 |   |
| Decrease (increase) in:                                    |   |           |   |   |           |   |
|   Receivables                                    |   | $              | 3,200  |   |           |   | 5,009 |   |
|   Inventories                                    |   |           | 1,202  |   |           |   | 866 |   |
|   Prepaid expenses and other current assets      |   |           | (1,613 | )      |           |   | (1,418 | ) |
|   Other assets                                   |   |           | 1,010  |   |           |   | 430 |   |
|                                                       |   |           |   |   |           |   |   |   |
| Increase (decrease) in:                                    |   |           |   |   |           |   |   |   |
|   Accounts payable                               |   |           | (3,619 | )      |           |   | (4,939 | ) |
|   Accrued expenses and other current liabilities |   |           | 3,782  |   |           |   | 1,755 |   |
|   Other liabilities                              |   |           | 1,804  |   |           |   | 1,696 |   |
| Net changes in operating assets and liabilities            |   | $              | 5,766  |   |           |   | 3,399 |   |

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|                             |   | April 18,2010 |    |   | December 27,2009 |   |
|---------------------------------------|--------|---------------|---------|--------|------------------|--------|
| Amortizing intangible assets:         |   |          |    |   |             |   |
| Franchise agreements                  |   | $             | 35,000  |   |             |   | 35,000 |   |
| Customer relationships                |   |          | 10,000  |   |             |   | 10,000 |   |
| Acquired franchise rights             |   |          | 10,758  |   |             |   | 10,758 |   |
| Design prototype                      |   |          | 834     |   |             |   | 834 |   |
| Subtotal                              |   |          | 56,592  |   |             |   | 56,592 |   |
| Less — accumulated amortization |   |          | (20,795 | )      |             |   | (20,179 | ) |
| Net amortizing intangible assets      |   |          | 35,797  |   |             |   | 36,413 |   |
| Non-amortizing intangible asset:      |   |          |    |   |             |   |   |   |
| Trade names                           |   |          | 110,600 |   |             |   | 110,600 |   |
| Total intangible assets               |   | $             | 146,397 |   |             |   | 147,013 |   |

|                                  |   | April 18,2010 |   |   | December 27,2009 |   |
|---------------------------------------|--------|---------------|--------|--------|------------------|--------|
| Payroll and related benefits          |   | $             | 15,246 |   |             |   | 15,423 |   |
| Interest                              |   |          | 8,043  |   |             |   | 6,065 |   |
| Gift cards and gift certificates      |   |          | 3,363  |   |             |   | 5,090 |   |
| Property, real estate and sales taxes |   |          | 6,463  |   |             |   | 4,267 |   |
| Insurance                             |   |          | 1,888  |   |             |   | 2,219 |   |
| Advertising                           |   |          | 834    |   |             |   | 792 |   |
| Other                                 |   |          | 7,839  |   |             |   | 7,749 |   |
| Total accrued expenses                |   | $             | 43,676 |   |             |   | 41,605 |   |

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|                                       |   | Quarter             |    |   | Quarter           |   |
|--------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                                       |   | Ended               |    |   | Ended             |   |
| Revenues                                   |   | April 18, 2010      |    |   | April 19, 2009    |   |
|                                       |   |                |    |   |              |   |
| Restaurant operations                      |   | $                   | 139,605 |   |              |   | 149,228 |   |
| Franchise operations                       |   |                | 6,670   |   |              |   | 6,944 |   |
| Foxtail                                    |   |                | 13,465  |   |              |   | 17,562 |   |
| Intersegment revenue                       |   |                | (5,755  | )      |              |   | (5,913 | ) |
| Other                                      |   |                | 1,820   |   |              |   | 1,432 |   |
| Total                                      |   | $                   | 155,805 |   |              |   | 169,253 |   |
|                                       |   |                |    |   |              |   |   |   |
| Segment profit (loss) attributable to PMCI |   |                |    |   |              |   |   |   |
|                                       |   |                |    |   |              |   |   |   |
| Restaurant operations                      |   |                | 5,570   |   |              |   | 9,076 |   |
| Franchise operations                       |   |                | 6,125   |   |              |   | 6,429 |   |
| Foxtail                                    |   |                | 641     |   |              |   | 159 |   |
| Other                                      |   |                | (26,942 | )      |              |   | (25,418 | ) |
| Total                                      |   | $                   | (14,606 | )      |              |   | (9,754 | ) |
|                                       |   |                |    |   |              |   |   |   |
| Segment assets                             |   | April 18, 2010 |    |   | December 27, 2009 |   |
|                                       |   |                |    |   |              |   |   |   |
| Restaurant operations                      |   |                | 126,039 |   |              |   | 132,611 |   |
| Franchise operations                       |   |                | 101,591 |   |              |   | 101,672 |   |
| Foxtail                                    |   |                | 29,336  |   |              |   | 31,754 |   |
| Other                                      |   |                | 33,852  |   |              |   | 38,868 |   |
| Total                                      |   | $                   | 290,818 |   |              |   | 304,905 |   |

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

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|                                                   |   | Quarter        |   |   | Quarter        |   |
|--------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
|                                                   |   | Ended          |   |   | Ended          |   |
|                                                   |   | April 18, 2010 |   |   | April 19, 2009 |   |
| General and administrative expenses                    |   | $              | 12,681 |   |           |   | 12,150 |   |
| Depreciation and amortization expenses                 |   |           | 957    |   |           |   | 1,037 |   |
| Interest expense, net                                  |   |           | 13,565 |   |           |   | 13,615 |   |
| Loss (gain) on disposition of assets, net              |   |           | (67    | )      |           |   | 660 |   |
| Asset write-down                                       |   |           | 1,732  |   |           |   | 202 |   |
| Provision for (benefit from) income taxes              |   |           | -      |   |           |   | - |   |
| Net earnings attributable to non-controlling interests |   |           | 8      |   |           |   | 46 |   |
| Licensing revenue                                      |   |           | (1,732 | )      |           |   | (1,361 | ) |
| Other                                                  |   |           | (202   | )      |           |   | (931 | ) |
| Total other segment loss                               |   | $              | 26,942 |   |           |   | 25,418 |   |

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|                                                |   | 2010   |   |
|-----------------------------------------------------|--------|--------|--------|
| Unrecognized tax benefit - beginning of fiscal year |   | $      | 1,153  |   |
| Additions for tax positions of prior years          |   |   | -      |   |
| Reductions for tax positions of prior years         |   |   | -      |   |
| Additions for tax positions of current year         |   |   | -      |   |
| Reductions due to settlements                       |   |   | -      |   |
| Reductions for lapse of statute of limitations      |   |   | -      |   |
| Unrecognized tax benefit - as of April 18, 2010     |   | $      | 1,153  |   |

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|                                              |   | Quarter Ended April 18, 2010 |   |
|---------------------------------------------------|--------|------------------------------|--------|
|                                              |   |                         |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                         |   |   | Additional |   |   |   |   |   | Other |   |   | Total PMCI |   |   |   |   |   |   |   |
|                                              |   | Common                       |   |   | Paid-in |   |   | Accumulated |   |   | Comprehensive |   |   | Stockholder's |   |   | Non-controlling |   |   | Total |   |
|                                              |   | Stock                        |   |   | Capital |   |   | Deficit |   |   | Income (Loss) |   |   | Deficit |   |   | Interests |   |   | Deficit |   |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 27, 2009                        |   | $                            | 1      |   |   |   | 150,870 |   |   |   | (329,333 | ) |   |   | 45 |   |   |   | (178,417 | ) |   |   | 308 |   |   |   | (178,109 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to non-controlling interest holders |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |   |   | (176 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) earnings                               |   |                         | -      |   |   |   | - |   |   |   | (14,606 | ) |   |   | - |   |   |   | (14,606 | ) |   |   | 8 |   |   |   | (14,598 | ) |
| Currency translation adjustment                   |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | 12 |   |   |   | 12 |   |   |   | - |   |   |   | 12 |   |
| Total comprehensive loss                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (14,586 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, April 18, 2010                           |   | $                            | 1      |   |   |   | 150,870 |   |   |   | (343,939 | ) |   |   | 57 |   |   |   | (193,011 | ) |   |   | 140 |   |   |   | (192,871 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   | Quarter Ended April 19, 2009 |   |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                         |   |   |   | Additional |   |   |   |   |   |   | Other |   |   | Total PMCI |   |   |   |   |   |   |   |   |   |
|                                              |   | Common                       |   |   | Paid-in |   |   | Accumulated |   |   | Comprehensive |   |   | Stockholder's |   |   | Non-controlling |   |   | Total |   |
|                                              |   | Stock                        |   |   | Capital |   |   | Deficit |   |   | Income (Loss) |   |   | Deficit |   |   | Interests |   |   | Deficit |   |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 28, 2008                        |   | $                            | 1      |   |   |   | 149,851 |   |   |   | (293,114 | ) |   |   | (4 | ) |   |   | (143,266 | ) |   |   | 215 |   |   |   | (143,051 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to non-controlling interest holders |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (70 | ) |   |   | (70 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) earnings                               |   |                         | -      |   |   |   | - |   |   |   | (9,754 | ) |   |   | - |   |   |   | (9,754 | ) |   |   | 46 |   |   |   | (9,708 | ) |
| Currency translation adjustment                   |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | (5 | ) |   |   | (5 | ) |   |   | - |   |   |   | (5 | ) |
| Total comprehensive loss                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9,713 | ) |
|                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, April 19, 2009                           |   | $                            | 1      |   |   |   | 149,851 |   |   |   | (302,868 | ) |   |   | (9 | ) |   |   | (153,025 | ) |   |   | 191 |   |   |   | (152,834 | ) |

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Table of Contents

| Consolidating Statement of Operations for the Quarter ended April 18, 2010 (unaudited; in thousands): |   |
|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                  |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                            |   | $ | 92,359 |   |   |   | 47,535 |   |   |   | 7,421 |   |   |   | - |   |   |   | 147,315 |   |
| Franchise and other revenue                                                                           |   |   | 5,641 |   |   |   | 2,848 |   |   |   | 1 |   |   |   | - |   |   |   | 8,490 |   |
|    Total revenues                                                                      |   |   | 98,000 |   |   |   | 50,383 |   |   |   | 7,422 |   |   |   | - |   |   |   | 155,805 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                           |   |   | 22,798 |   |   |   | 12,518 |   |   |   | 1,966 |   |   |   | - |   |   |   | 37,282 |   |
|    Labor and benefits                                                                  |   |   | 32,429 |   |   |   | 18,290 |   |   |   | 2,643 |   |   |   | - |   |   |   | 53,362 |   |
|    Operating expenses                                                                  |   |   | 25,823 |   |   |   | 15,118 |   |   |   | 2,794 |   |   |   | - |   |   |   | 43,735 |   |
| General and administrative                                                                            |   |   | 12,540 |   |   |   | 1,566 |   |   |   | - |   |   |   | - |   |   |   | 14,106 |   |
| Depreciation and amortization                                                                         |   |   | 5,074 |   |   |   | 1,608 |   |   |   | 224 |   |   |   | - |   |   |   | 6,906 |   |
| Interest, net                                                                                         |   |   | 13,482 |   |   |   | 83 |   |   |   | - |   |   |   | - |   |   |   | 13,565 |   |
| Asset impairments and closed store expenses                                                           |   |   | 825 |   |   |   | 834 |   |   |   | 6 |   |   |   | - |   |   |   | 1,665 |   |
| Other, net                                                                                            |   |   | (126 | ) |   |   | (92 | ) |   |   | - |   |   |   | - |   |   |   | (218 | ) |
|    Total costs and expenses                                                            |   |   | 112,845 |   |   |   | 49,925 |   |   |   | 7,633 |   |   |   | - |   |   |   | 170,403 |   |
| Profit (loss) before income taxes                                                                     |   |   | (14,845 | ) |   |   | 458 |   |   |   | (211 | ) |   |   | - |   |   |   | (14,598 | ) |
| Benefit from (provision for) income taxes                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net profit (loss)                                                                                     |   |   | (14,845 | ) |   |   | 458 |   |   |   | (211 | ) |   |   | - |   |   |   | (14,598 | ) |
| Less: net earnings attributable to non-controlling interests                                          |   |   | - |   |   |   | - |   |   |   | 8 |   |   |   | - |   |   |   | 8 |   |
| Equity in earnings (loss) of subsidiaries                                                             |   |   | 247 |   |   |   | - |   |   |   | - |   |   |   | (247 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                |   | $ | (14,598 | ) |   |   | 458 |   |   |   | (219 | ) |   |   | (247 | ) |   |   | (14,606 | ) |

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Table of Contents

| Consolidating Statement of Operations for the Quarter ended April 19, 2009 (unaudited; in thousands): |   |   |    |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |    |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                  |   | Issuer |    |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                            |   | $      | 101,726 |   |   |   | 51,139 |   |   |   | 8,012 |   |   |   | - |   |   |   | 160,877 |   |
| Franchise and other revenue                                                                           |   |   | 5,783   |   |   |   | 2,593 |   |   |   | - |   |   |   | - |   |   |   | 8,376 |   |
|    Total revenues                                                                      |   |   | 107,509 |   |   |   | 53,732 |   |   |   | 8,012 |   |   |   | - |   |   |   | 169,253 |   |
|                                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                           |   |   | 26,845  |   |   |   | 13,991 |   |   |   | 2,138 |   |   |   | - |   |   |   | 42,974 |   |
|    Labor and benefits                                                                  |   |   | 33,467  |   |   |   | 18,986 |   |   |   | 2,872 |   |   |   | - |   |   |   | 55,325 |   |
|    Operating expenses                                                                  |   |   | 27,371  |   |   |   | 15,466 |   |   |   | 2,864 |   |   |   | - |   |   |   | 45,701 |   |
| General and administrative                                                                            |   |   | 12,348  |   |   |   | 1,741 |   |   |   | - |   |   |   | - |   |   |   | 14,089 |   |
| Depreciation and amortization                                                                         |   |   | 5,436   |   |   |   | 1,728 |   |   |   | 192 |   |   |   | - |   |   |   | 7,356 |   |
| Interest, net                                                                                         |   |   | 13,381  |   |   |   | 234 |   |   |   | - |   |   |   | - |   |   |   | 13,615 |   |
| Asset impairments and closed store expenses                                                           |   |   | 761     |   |   |   | 21 |   |   |   | 80 |   |   |   | - |   |   |   | 862 |   |
| Other, net                                                                                            |   |   | (962    | )      |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (961 | ) |
|    Total costs and expenses                                                            |   |   | 118,647 |   |   |   | 52,168 |   |   |   | 8,146 |   |   |   | - |   |   |   | 178,961 |   |
| Profit (loss) before income taxes                                                                     |   |   | (11,138 | )      |   |   | 1,564 |   |   |   | (134 | ) |   |   | - |   |   |   | (9,708 | ) |
| Benefit from (provision for) income taxes                                                             |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net profit (loss)                                                                                     |   |   | (11,138 | )      |   |   | 1,564 |   |   |   | (134 | ) |   |   | - |   |   |   | (9,708 | ) |
| Less: net earnings attributable to non-controlling interests                                          |   |   | -       |   |   |   | - |   |   |   | 46 |   |   |   | - |   |   |   | 46 |   |
| Equity in earnings (loss) of subsidiaries                                                             |   |   | 1,430   |   |   |   | - |   |   |   | - |   |   |   | (1,430 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                |   | $      | (9,708  | )      |   |   | 1,564 |   |   |   | (180 | ) |   |   | (1,430 | ) |   |   | (9,754 | ) |

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Table of Contents

| Consolidating Balance Sheet as of April 18, 2010 (unaudited; in thousands):         |   |   |     |   |      |   |     |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
|                                                                                |   |   |     |   | Guarantor |   |     | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                |   | Issuer |     |   | WRG       |   |     | Guarantors |   |   | Eliminations |   |   | PMCI |   |
| ASSETS                                                                              |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                     |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $      | 1,499    |   |      |   | 169      |   |   |   | 622 |   |   |   | - |   |   |   | 2,290 |   |
| Restricted cash                                                                     |   |   | 7,147    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 7,147 |   |
| Receivables, less allowances for   doubtful accounts                 |   |   | 10,580   |   |      |   | 4,322    |   |   |   | 6 |   |   |   | - |   |   |   | 14,908 |   |
| Inventories                                                                         |   |   | 7,113    |   |      |   | 2,565    |   |   |   | 182 |   |   |   | - |   |   |   | 9,860 |   |
| Prepaid expenses and other current assets                                           |   |   | 2,875    |   |      |   | 597      |   |   |   | 5 |   |   |   | - |   |   |   | 3,477 |   |
|      Total current assets                                  |   |   | 29,214   |   |      |   | 7,653    |   |   |   | 815 |   |   |   | - |   |   |   | 37,682 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |   | 47,332   |   |      |   | 18,611   |   |   |   | 2,279 |   |   |   | - |   |   |   | 68,222 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |   | -        |   |      |   | 49       |   |   |   | 9 |   |   |   | - |   |   |   | 58 |   |
| GOODWILL                                                                            |   |   | 23,100   |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 23,100 |   |
| INTANGIBLE ASSETS                                                                   |   |   | 146,290  |   |      |   | 107      |   |   |   | - |   |   |   | - |   |   |   | 146,397 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |   | (78,742  | )      |      |   | -        |   |   |   | - |   |   |   | 78,742 |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |   | 78,824   |   |      |   | -        |   |   |   | - |   |   |   | (78,824 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |   | 14,014   |   |      |   | 1,135    |   |   |   | 210 |   |   |   | - |   |   |   | 15,359 |   |
| TOTAL ASSETS                                                                        |   | $      | 260,032  |   |      |   | 27,555   |   |   |   | 3,313 |   |   |   | (82 | ) |   |   | 290,818 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                    |   |   | 6,660    |   |      |   | 3,999    |   |   |   | 379 |   |   |   | - |   |   |   | 11,038 |   |
| Accrued expenses                                                                    |   |   | 34,170   |   |      |   | 8,299    |   |   |   | 1,207 |   |   |   | - |   |   |   | 43,676 |   |
| Franchise advertising contributions                                                 |   |   | 4,783    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 4,783 |   |
| Current maturities of long-term debt and   capital lease obligations |   |   | 157      |   |      |   | 262      |   |   |   | - |   |   |   | - |   |   |   | 419 |   |
|      Total current liabilities                             |   |   | 45,770   |   |      |   | 12,560   |   |   |   | 1,586 |   |   |   | - |   |   |   | 59,916 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |   | 326,160  |   |      |   | (2       | ) |   |   | - |   |   |   | - |   |   |   | 326,158 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |   | 8,066    |   |      |   | 2,919    |   |   |   | - |   |   |   | - |   |   |   | 10,985 |   |
| DEFERRED RENT                                                                       |   |   | 13,111   |   |      |   | 4,762    |   |   |   | 61 |   |   |   | - |   |   |   | 17,934 |   |
| OTHER LIABILITIES                                                                   |   |   | 14,479   |   |      |   | 8,760    |   |   |   | - |   |   |   | - |   |   |   | 23,239 |   |
| DEFERRED INCOME TAXES                                                               |   |   | 45,457   |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 45,457 |   |
| DUE TO PARENT                                                                       |   |   | -        |   |      |   | 77,570   |   |   |   | 1,254 |   |   |   | (78,824 | ) |   |   | - |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EQUITY (DEFICIT):                                                                   |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock                                                                        |   |   | 1        |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 1 |   |
| Preferred stock                                                                     |   |   | -        |   |      |   | 64,296   |   |   |   | - |   |   |   | (64,296 | ) |   |   | - |   |
| Capital in excess of par                                                            |   |   | -        |   |      |   | 9,338    |   |   |   | - |   |   |   | (9,338 | ) |   |   | - |   |
| Additional paid-in capital                                                          |   |   | 150,870  |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 150,870 |   |
| Treasury stock                                                                      |   |   | -        |   |      |   | (137     | ) |   |   | - |   |   |   | 137 |   |   |   | - |   |
| Accumulated other comprehensive income                                              |   |   | 57       |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 57 |   |
| Accumulated (deficit) earnings                                                      |   |   | (343,939 | )      |      |   | (152,511 | ) |   |   | 272 |   |   |   | 152,239 |   |   |   | (343,939 | ) |
|   Total PMCI stockholder's (deficit) investment                           |   |   | (193,011 | )      |      |   | (79,014  | ) |   |   | 272 |   |   |   | 78,742 |   |   |   | (193,011 | ) |
| Non-controlling interests                                                           |   |   | -        |   |      |   | -        |   |   |   | 140 |   |   |   | - |   |   |   | 140 |   |
|   Total (deficit) equity                                                  |   |   | (193,011 | )      |      |   | (79,014  | ) |   |   | 412 |   |   |   | 78,742 |   |   |   | (192,871 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $      | 260,032  |   |      |   | 27,555   |   |   |   | 3,313 |   |   |   | (82 | ) |   |   | 290,818 |   |

----

Table of Contents

| Consolidating Balance Sheet as of December 27, 2009 (in thousands):                 |   |   |     |   |      |   |     |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
|                                                                                |   |   |     |   | Guarantor |   |     | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                |   | Issuer |     |   | WRG       |   |     | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| ASSETS                                                                              |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                     |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $      | 2,013    |   |      |   | 1,293    |   |   |   | 982 |   |   |   | - |   |   |   | 4,288 |   |
| Restricted cash                                                                     |   |   | 8,110    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 8,110 |   |
| Receivables, less allowances for   doubtful accounts                 |   |   | 11,070   |   |      |   | 7,048    |   |   |   | 7 |   |   |   | - |   |   |   | 18,125 |   |
| Inventories                                                                         |   |   | 8,038    |   |      |   | 2,793    |   |   |   | 231 |   |   |   | - |   |   |   | 11,062 |   |
| Prepaid expenses and other current assets                                           |   |   | 1,613    |   |      |   | 248      |   |   |   | 3 |   |   |   | - |   |   |   | 1,864 |   |
|      Total current assets                                  |   |   | 30,844   |   |      |   | 11,382   |   |   |   | 1,223 |   |   |   | - |   |   |   | 43,449 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |   | 52,217   |   |      |   | 20,530   |   |   |   | 2,472 |   |   |   | - |   |   |   | 75,219 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |   | -        |   |      |   | 41       |   |   |   | 9 |   |   |   | - |   |   |   | 50 |   |
| GOODWILL                                                                            |   |   | 23,100   |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 23,100 |   |
| INTANGIBLE ASSETS                                                                   |   |   | 146,889  |   |      |   | 124      |   |   |   | - |   |   |   | - |   |   |   | 147,013 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |   | (78,981  | )      |      |   | -        |   |   |   | - |   |   |   | 78,981 |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |   | 81,493   |   |      |   | -        |   |   |   | - |   |   |   | (81,493 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |   | 14,321   |   |      |   | 1,543    |   |   |   | 210 |   |   |   | - |   |   |   | 16,074 |   |
| TOTAL ASSETS                                                                        |   | $      | 269,883  |   |      |   | 33,620   |   |   |   | 3,914 |   |   |   | (2,512 | ) |   |   | 304,905 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                    |   |   | 7,946    |   |      |   | 6,074    |   |   |   | 637 |   |   |   | - |   |   |   | 14,657 |   |
| Accrued expenses                                                                    |   |   | 30,628   |   |      |   | 9,635    |   |   |   | 1,342 |   |   |   | - |   |   |   | 41,605 |   |
| Franchise advertising contributions                                                 |   |   | 4,327    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 4,327 |   |
| Current maturities of long-term debt and   capital lease obligations |   |   | 186      |   |      |   | 317      |   |   |   | - |   |   |   | - |   |   |   | 503 |   |
|      Total current liabilities                             |   |   | 43,087   |   |      |   | 16,026   |   |   |   | 1,979 |   |   |   | - |   |   |   | 61,092 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |   | 326,042  |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 326,042 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |   | 8,085    |   |      |   | 2,969    |   |   |   | - |   |   |   | - |   |   |   | 11,054 |   |
| DEFERRED RENT                                                                       |   |   | 12,263   |   |      |   | 4,765    |   |   |   | 64 |   |   |   | - |   |   |   | 17,092 |   |
| OTHER LIABILITIES                                                                   |   |   | 13,366   |   |      |   | 8,911    |   |   |   | - |   |   |   | - |   |   |   | 22,277 |   |
| DEFERRED INCOME TAXES                                                               |   |   | 45,457   |   |      |   | -        |   |   |   | - |   |   |   |  - |   |   |   | 45,457 |   |
| DUE TO PARENT                                                                       |   |   | -        |   |      |   | 80,421   |   |   |   | 1,072 |   |   |   | (81,493 | ) |   |   | - |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EQUITY (DEFICIT):                                                                   |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock                                                                        |   |   | 1        |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 1 |   |
| Preferred stock                                                                     |   |   | -        |   |      |   | 64,296   |   |   |   | - |   |   |   | (64,296 | ) |   |   | - |   |
| Capital in excess of par                                                            |   |   | -        |   |      |   | 9,338    |   |   |   | - |   |   |   | (9,338 | ) |   |   | - |   |
| Additional paid-in capital                                                          |   |   | 150,870  |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 150,870 |   |
| Treasury stock                                                                      |   |   | -        |   |      |   | (137     | ) |   |   | - |   |   |   | 137 |   |   |   | - |   |
| Accumulated other comprehensive income                                              |   |   | 45       |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 45 |   |
| Accumulated (deficit) earnings                                                      |   |   | (329,333 | )      |      |   | (152,969 | ) |   |   | 491 |   |   |   | 152,478 |   |   |   | (329,333 | ) |
|   Total PMCI stockholder's (deficit) investment                           |   |   | (178,417 | )      |      |   | (79,472  | ) |   |   | 491 |   |   |   | 78,981 |   |   |   | (178,417 | ) |
| Non-controlling interests                                                           |   |   | -        |   |      |   | -        |   |   |   | 308 |   |   |   | - |   |   |   | 308 |   |
|   Total (deficit) equity                                                  |   |   | (178,417 | )      |      |   | (79,472  | ) |   |   | 799 |   |   |   | 78,981 |   |   |   | (178,109 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $      | 269,883  |   |      |   | 33,620   |   |   |   | 3,914 |   |   |   | (2,512 | ) |   |   | 304,905 |   |

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| Consolidating Statement of Cash Flows for the Quarter ended April 18, 2010 (unaudited; in thousands): |   |
|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                  |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                     |   | $ | (14,598 | ) |   |   | 458 |   |   |   | (211 | ) |   |   | (247 | ) |   |   | (14,598 | ) |
| Adjustments to reconcile net (loss) income to net cash                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries                                                             |   |   | (247 | ) |   |   | - |   |   |   | - |   |   |   | 247 |   |   |   | - |   |
| Depreciation and amortization                                                                         |   |   | 5,074 |   |   |   | 1,608 |   |   |   | 224 |   |   |   | - |   |   |   | 6,906 |   |
| Asset impairments                                                                                     |   |   | 938 |   |   |   | 788 |   |   |   | 6 |   |   |   | - |   |   |   | 1,732 |   |
| Amortization of debt discount                                                                         |   |   | 541 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 541 |   |
| Other non-cash income and expense items                                                               |   |   | (43 | ) |   |   | (124 | ) |   |   | - |   |   |   | - |   |   |   | (167 | ) |
| Loss (gain) on disposition of assets                                                                  |   |   | (113 | ) |   |   | 46 |   |   |   | - |   |   |   | - |   |   |   | (67 | ) |
| Equity in net income of unconsolidated partnership                                                    |   |   | - |   |   |   | (8 | ) |   |   | - |   |   |   | - |   |   |   | (8 | ) |
| Net changes in operating assets and liabilities                                                       |   |   | 6,548 |   |   |   | (434 | ) |   |   | (348 | ) |   |   | - |   |   |   | 5,766 |   |
| Total adjustments                                                                                     |   |   | 12,698 |   |   |   | 1,876 |   |   |   | (118 | ) |   |   | 247 |   |   |   | 14,703 |   |
| Net cash (used in) provided by operating activities                                                   |   |   | (1,900 | ) |   |   | 2,334 |   |   |   | (329 | ) |   |   | - |   |   |   | 105 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                   |   |   | (812 | ) |   |   | (505 | ) |   |   | (37 | ) |   |   | - |   |   |   | (1,354 | ) |
| Proceeds from sale of assets                                                                          |   |   |   |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | 5 |   |
| Net cash used in investing activities                                                                 |   |   | (812 | ) |   |   | (500 | ) |   |   | (37 | ) |   |   | - |   |   |   | (1,349 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from revolving credit facilities                                                             |   |   | 10,966 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,966 |   |
| Repayment of revolving credit facilities                                                              |   |   | (11,389 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (11,389 | ) |
| Repayment of capital lease obligations                                                                |   |   | (48 | ) |   |   | (101 | ) |   |   | - |   |   |   | - |   |   |   | (149 | ) |
| Repayment of other debt                                                                               |   |   | - |   |   |   | (6 | ) |   |   | - |   |   |   | - |   |   |   | (6 | ) |
| Distributions to non-controlling interest holders                                                     |   |   | - |   |   |   | - |   |   |   | (176 | ) |   |   | - |   |   |   | (176 | ) |
| Intercompany financing                                                                                |   |   | 2,669 |   |   |   | (2,851 | ) |   |   | 182 |   |   |   | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities                                                   |   |   | 2,198 |   |   |   | (2,958 | ) |   |   | 6 |   |   |   | - |   |   |   | (754 | ) |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                                             |   |   | (514 | ) |   |   | (1,124 | ) |   |   | (360 | ) |   |   | - |   |   |   | (1,998 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                          |   |   | 2,013 |   |   |   | 1,293 |   |   |   | 982 |   |   |   | - |   |   |   | 4,288 |   |
| Balance, end of period                                                                                |   | $ | 1,499 |   |   |   | 169 |   |   |   | 622 |   |   |   | - |   |   |   | 2,290 |   |

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| Consolidating Statement of Cash Flows for the Quarter ended April 19, 2009 (unaudited; in thousands): |   |
|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                  |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                     |   | $ | (9,708 | ) |   |   | 1,564 |   |   |   | (134 | ) |   |   | (1,430 | ) |   |   | (9,708 | ) |
| Adjustments to reconcile net (loss) income to net cash                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries                                                             |   |   | (1,430 | ) |   |   | - |   |   |   | - |   |   |   | 1,430 |   |   |   | - |   |
| Depreciation and amortization                                                                         |   |   | 5,436 |   |   |   | 1,728 |   |   |   | 192 |   |   |   | - |   |   |   | 7,356 |   |
| Asset impairments                                                                                     |   |   | 71 |   |   |   | 51 |   |   |   | 80 |   |   |   | - |   |   |   | 202 |   |
| Amortization of debt discount                                                                         |   |   | 474 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 474 |   |
| Other non-cash income and expense items                                                               |   |   | (935 | ) |   |   | 226 |   |   |   | - |   |   |   | - |   |   |   | (709 | ) |
| Loss (gain) on disposition of assets                                                                  |   |   | 690 |   |   |   | (30 | ) |   |   | - |   |   |   | - |   |   |   | 660 |   |
| Equity in net loss of unconsolidated partnership                                                      |   |   | - |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 10 |   |
| Net changes in operating assets and liabilities                                                       |   |   | 3,976 |   |   |   | (528 | ) |   |   | (49 | ) |   |   | - |   |   |   | 3,399 |   |
| Total adjustments                                                                                     |   |   | 8,282 |   |   |   | 1,457 |   |   |   | 223 |   |   |   | 1,430 |   |   |   | 11,392 |   |
| Net cash (used in) provided by operating activities                                                   |   |   | (1,426 | ) |   |   | 3,021 |   |   |   | 89 |   |   |   | - |   |   |   | 1,684 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                   |   |   | (1,060 | ) |   |   | (952 | ) |   |   | (462 | ) |   |   | - |   |   |   | (2,474 | ) |
| Proceeds from sale of assets                                                                          |   |   | 476 |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | 476 |   |
| Net cash used in investing activities                                                                 |   |   | (584 | ) |   |   | (952 | ) |   |   | (462 | ) |   |   | - |   |   |   | (1,998 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from revolving credit facilities                                                             |   |   | 7,443 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,443 |   |
| Repayment of revolving credit facilities                                                              |   |   | (8,128 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (8,128 | ) |
| Repayment of capital lease obligations                                                                |   |   | (52 | ) |   |   | (76 | ) |   |   | - |   |   |   | - |   |   |   | (128 | ) |
| Repayment of other debt                                                                               |   |   | - |   |   |   | (6 | ) |   |   | - |   |   |   | - |   |   |   | (6 | ) |
| Debt financing costs                                                                                  |   |   | (127 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (127 | ) |
| Distributions to non-controlling interest holders                                                     |   |   | - |   |   |   | - |   |   |   | (70 | ) |   |   | - |   |   |   | (70 | ) |
| Intercompany financing                                                                                |   |   | 2,566 |   |   |   | (2,878 | ) |   |   | 312 |   |   |   | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities                                                   |   |   | 1,702 |   |   |   | (2,960 | ) |   |   | 242 |   |   |   | - |   |   |   | (1,016 | ) |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                                             |   |   | (308 | ) |   |   | (891 | ) |   |   | (131 | ) |   |   | - |   |   |   | (1,330 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                          |   |   | 2,155 |   |   |   | 1,662 |   |   |   | 796 |   |   |   | - |   |   |   | 4,613 |   |
| Balance, end of period                                                                                |   | $ | 1,847 |   |   |   | 771 |   |   |   | 665 |   |   |   | - |   |   |   | 3,283 |   |

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

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|                    |   | Company- |   |   |         |   |   |       |   |   |   |   |
|-------------------------|--------|----------|--------|--------|--------------|--------|--------|------------|--------|--------|--------|--------|
| Restaurant Name         |   | operated |   |   | Partnerships |   |   | Franchised |   |   | Total  |   |
| Marie Callender's       |   |     | 77     |   |         |   | 12     |       |   |   | 37     |   |   |   | 126 |   |
| Marie Callender's Grill |   |     | -      |   |         |   | -      |       |   |   | 1      |   |   |   | 1 |   |
| Callender's Grill       |   |     | 2      |   |         |   | -      |       |   |   | -      |   |   |   | 2 |   |
| East Side Mario's       |   |     | 1      |   |         |   | -      |       |   |   | -      |   |   |   | 1 |   |
| Total                   |   |     | 80     |   |         |   | 12     |       |   |   | 38     |   |   |   | 130 |   |

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|                        |   | Consolidated Results |    |   | Restaurant Operations |   |    | Franchise Operations |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------------|--------|---------|----------------------|--------|
|                        |   | Quarter Ended        |    |   | Quarter Ended         |   |    | Quarter Ended        |   |
|                        |   | April 18, 2010       |    |   | April 19, 2009        |   |    | April 18, 2010       |   |   | April 19, 2009 |   |   | April 18, 2010 |   |   | April 19, 2009 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 153,070 |   |                  |   | 166,790 |                 |   |   | 139,605 |   |   |   | 149,228 |   |   |   | - |   |   |   | - |   |
| Franchise and other revenue |   |                 | 8,490   |   |                  |   | 8,376   |                 |   |   | - |   |   |   | - |   |   |   | 6,670 |   |   |   | 6,944 |   |
| Intersegment revenue        |   |                 | (5,755  | )      |                  |   | (5,913  | )                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total revenues              |   |                 | 155,805 |   |                  |   | 169,253 |                 |   |   | 139,605 |   |   |   | 149,228 |   |   |   | 6,670 |   |   |   | 6,944 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 25.3    | %      |                  |   | 26.7    | %                    |   |   | 25.7 | % |   |   | 26.0 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Labor and benefits          |   |                 | 34.2    | %      |                  |   | 32.7    | %                    |   |   | 36.8 | % |   |   | 35.4 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Operating expenses          |   |                 | 28.1    | %      |                  |   | 27.0    | %                    |   |   | 29.7 | % |   |   | 28.8 | % |   |   | 8.2 | % |   |   | 7.4 | % |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | (14,606 | )      |                  |   | (9,754  | )                    |   |   | 5,570 |   |   |   | 9,076 |   |   |   | 6,125 |   |   |   | 6,429 |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | Foxtail (a)          |    |   | Other (b)             |   |    |                 |   |   |   |   |   |   |
|                        |   | Quarter Ended        |    |   | Quarter Ended         |   |    |                 |   |   |   |   |   |   |
|                        |   | April 18, 2010       |    |   | April 19, 2009        |   |    | April 18, 2010       |   |   | April 19, 2009 |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 13,465  |   |                  |   | 17,562  |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Franchise and other revenue |   |                 | -       |   |                  |   | -       |                 |   |   | 1,820 |   |   |   | 1,432 |   |   |   |   |   |   |   |   |   |
| Intersegment revenue        |   |                 | (5,755  | )      |                  |   | (5,913  | )                    |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Total revenues              |   |                 | 7,710   |   |                  |   | 11,649  |                 |   |   | 1,820 |   |   |   | 1,432 |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 53.6    | %      |                  |   | 57.7    | %                    |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |
| Labor and benefits          |   |                 | 13.9    | %      |                  |   | 14.0    | %                    |   |   | 5.6 | % |   |   | 7.2 | % |   |   |   |   |   |   |   |   |
| Operating expenses          |   |                 | 12.3    | %      |                  |   | 12.7    | %                    |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |                  |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | 641     |   |                  |   | 159     |                 |   |   | (26,942 | ) |   |   | (25,418 | ) |   |   |   |   |   |   |   |   |

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

| (b) | Licensing revenue of $1,732,000 and $1,361,000 for the first quarters of 2010 and 2009, respectively, is included in the other segment revenues. The other segment loss includes corporate general and administrative expenses, interest expense and other non-operational expenses. For details of the other segment loss, see Note 10, “Segment Reporting” in the Notes to Consolidated Financial Statements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  |   | Percentage of Total Revenues |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | Quarter                      |   |   | Quarter |   |
|                  |   | Ended                        |   |   | Ended |   |
|                  |   | April 18, 2010               |   |   | April 19, 2009 |   |
|                  |   |                         |   |   |   |   |
| Restaurant operations |   |                         | 89.6   | % |   |   | 88.2 | % |
| Franchise operations  |   |                         | 4.3    | % |   |   | 4.1 | % |
| Foxtail               |   |                         | 4.9    | % |   |   | 6.9 | % |
| Other                 |   |                         | 1.2    | % |   |   | 0.8 | % |
| Total revenues        |   |                         | 100.0  | % |   |   | 100.0 | % |

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|                                   |   | QuarterEndedApril 18, 2010 |       |   | QuarterEndedApril 19, 2009 |   |
|---------------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|
| Cash flows provided by operating activities |   | $                          | 105        |   |                       |   | 1,684 |   |
| Cash flows used in investing activities     |   |                       | (1,349     | )      |                       |   | (1,998 | ) |
| Cash flows used in financing activities     |   |                       | ( 754 | )      |                       |   | (1,016 | ) |

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|                      |   | QuarterEndedApril 18, 2010 |   |   | QuarterEndedApril 19, 2009 |   |
|-------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------|
| New restaurants                     |   | $                          | -      |   |                       |   | 1 |   |
| Restaurant improvements             |   |                       | 917    |   |                       |   | 1,176 |   |
| Restaurant remodeling and reimaging |   |                       | 218    |   |                       |   | 993 |   |
| Manufacturing plant improvements    |   |                       | 147    |   |                       |   | 130 |   |
| Other                               |   |                       | 72     |   |                       |   | 174 |   |
| Total capital expenditures          |   | $                          | 1,354  |   |                       |   | 2,474 |   |

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

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

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

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

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

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

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

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

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

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

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4. CONTROLS AND PROCEDURES

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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. Removed and Reserved

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. |

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SIGNATURE

|                    | PERKINS & MARIE CALLENDER’S INC. |
|-------------------------|--------------------------------------------|
|                    |                                       |
| DATE: June 7, 2010 | BY: /s/ Fred T. Grant, Jr.                 |   |
|                    | Fred T. Grant, Jr.                         |
|                    | Chief Financial Officer                    |

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