----

----

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

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

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

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

----

----

TABLE OF CONTENTS

| PART I — FINANCIAL INFORMATION                                                                                                       |      Page |
|--------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|  Item 1. Financial Statements:                                                                                                        |                          |
|  Consolidated Statements of Operations (Unaudited) – Quarter and Year-to-Date Periods Ended October 4, 2009 and October 5, 2008 | 2                             |
|  Consolidated Balance Sheets – October 4, 2009 (Unaudited) and December 28, 2008                                                | 3                             |
|  Consolidated Statements of Cash Flows (Unaudited) – Year-to-Date Periods Ended October 4, 2009 and October 5, 2008             | 4                             |
|  Notes to Consolidated Financial Statements (Unaudited)                                                                               | 5                             |
|  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                  | 24                            |
|  Item 3. Quantitative and Qualitative Disclosures about Market Risk                                                                   | 41                            |
|  Item 4. Controls and Procedures                                                                                                      | 42                            |
|   PART II — OTHER INFORMATION                                                                                              |                          |
|  Item 1. Legal Proceedings                                                                                                            | 43                            |
|  Item 1A. Risk Factors                                                                                                                | 43                            |
|  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                  | 43                            |
|  Item 3. Defaults Upon Senior Securities                                                                                              | 43                            |
|  Item 4. Submission of Matters to a Vote of Security Holders                                                                          | 43                            |
|  Item 5. Other Information                                                                                                            | 43                            |
|  Item 6. Exhibits                                                                                                                     | 43                            |
|                                                                                                                                       |                          |
| SIGNATURE                                                                                                                                  | 44                            |
|  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         |   |    | Year-to-Date    |   |   | Year-to-Date    |   |
|-----------------------------------------------------|--------|-----------------|---------|--------|-----------------|--------|---------|-----------------|--------|--------|-----------------|--------|
|                                                |   | Ended           |    |   | Ended           |   |    | Ended           |   |   | Ended           |   |
|                                                |   | October 4, 2009 |    |   | October 5, 2008 |   |    | October 4, 2009 |   |   | October 5, 2008 |   |
| REVENUES:                                           |   |            |    |   |            |   |    |            |   |   |            |   |
| Food sales                                          |   | $               | 109,086 |   |            |   | 121,210 |            |   |   | 385,024         |   |   |   | 418,632 |   |
| Franchise and other revenue                         |   |            | 6,384   |   |            |   | 6,691   |            |   |   | 21,575          |   |   |   | 22,635 |   |
|     Total revenues              |   |            | 115,470 |   |            |   | 127,901 |            |   |   | 406,599         |   |   |   | 441,267 |   |
| COSTS AND EXPENSES:                                 |   |            |    |   |            |   |    |            |   |   |            |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below): |   |            |    |   |            |   |    |            |   |   |            |   |   |
|     Food cost                   |   |            | 28,058  |   |            |   | 35,867  |            |   |   | 101,333         |   |   |   | 123,428 |   |
|     Labor and benefits          |   |            | 39,474  |   |            |   | 41,417  |            |   |   | 135,703         |   |   |   | 144,105 |   |
|     Operating expenses          |   |            | 33,183  |   |            |   | 34,240  |            |   |   | 110,956         |   |   |   | 115,361 |   |
| General and administrative                          |   |            | 10,313  |   |            |   | 10,612  |            |   |   | 34,531          |   |   |   | 35,727 |   |
| Depreciation and amortization                       |   |            | 5,498   |   |            |   | 5,741   |            |   |   | 18,411          |   |   |   | 19,111 |   |
| Interest, net                                       |   |            | 10,260  |   |            |   | 8,568   |            |   |   | 34,005          |   |   |   | 26,871 |   |
| Asset impairments and closed store expenses         |   |            | 187     |   |            |   | 61      |            |   |   | 1,395           |   |   |   | 614 |   |
| Goodwill impairment                                 |   |            | -       |   |            |   | 20,202  |            |   |   | -               |   |   |   | 20,202 |   |
| Loss on extinguishment of debt                      |   |            | -       |   |            |   | 2,952   |            |   |   | -               |   |   |   | 2,952 |   |
| Other, net                                          |   |            | (392    | )      |            |   | (27     | )               |   |   | (3,069          | )      |   |   | (117 | ) |
|     Total costs and expenses    |   |            | 126,581 |   |            |   | 159,633 |            |   |   | 433,265         |   |   |   | 488,254 |   |
| Loss before income taxes                            |   |            | (11,111 | )      |            |   | (31,732 | )               |   |   | (26,666         | )      |   |   | (46,987 | ) |
| Benefit from (provision for) income taxes           |   |            | (142    | )      |            |   | 1,260   |            |   |   | (142            | )      |   |   | 938 |   |
| Net loss                                            |   |            | (11,253 | )      |            |   | (30,472 | )               |   |   | (26,808         | )      |   |   | (46,049 | ) |
| Less: net (loss) earnings attributable to           |   |            |    |   |            |   |    |            |   |   |            |   |   |   |   |   |
|     non-controlling interests   |   |            | (5      | )      |            |   | 5       |            |   |   | 74              |   |   |   | 81 |   |
| Net loss attributable to Perkins & Marie        |   |            |    |   |            |   |    |            |   |   |            |   |   |   |   |   |
|     Callender's Inc.            |   | $               | (11,248 | )      |            |   | (30,477 | )               |   |   | (26,882         | )      |   |   | (46,130 | ) |

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Table of Contents

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                               |   | October 4,  |     |   | December 28, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|----------|--------|--------------|--------|
|                                                                                                                                                               |   | 2009        |     |   | 2008         |   |
| ASSETS                                                                                                                                                             |   | (Unaudited) |     |   |         |   |
| CURRENT ASSETS:                                                                                                                                                    |   |        |     |   |         |   |
| Cash and cash equivalents                                                                                                                                          |   | $           | 3,525    |   |         |   | 4,613 |   |
| Restricted cash                                                                                                                                                    |   |        | 7,303    |   |         |   | 10,140 |   |
| Receivables, less allowances for doubtful accounts of $806    and $954 in 2009 and 2008, respectively                                          |   |        | 17,390   |   |         |   | 21,386 |   |
| Inventories                                                                                                                                                        |   |        | 11,406   |   |         |   | 12,300 |   |
| Prepaid expenses and other current assets                                                                                                                          |   |        | 4,470    |   |         |   | 2,996 |   |
|      Total current assets                                                                                                                 |   |        | 44,094   |   |         |   | 51,435 |   |
| PROPERTY AND EQUIPMENT, net of accumulated   depreciation and amortization of $137,817 and $125,951 in   2009 and 2008, respectively |   |        | 79,966   |   |         |   | 93,500 |   |
| INVESTMENT IN UNCONSOLIDATED PARTNERSHIP                                                                                                                           |   |        | 23       |   |         |   | 48 |   |
| GOODWILL                                                                                                                                                           |   |        | 9,836    |   |         |   | 9,836 |   |
| INTANGIBLE ASSETS                                                                                                                                                  |   |        | 149,036  |   |         |   | 150,847 |   |
| OTHER ASSETS                                                                                                                                                       |   |        | 16,938   |   |         |   | 17,842 |   |
| TOTAL ASSETS                                                                                                                                                       |   | $           | 299,893  |   |         |   | 323,508 |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
|  LIABILITIES AND DEFICIT                                                                                                                                      |   |        |     |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                               |   |        |     |   |         |   |   |   |
|  Accounts payable                                                                                                                                             |   | $           | 15,775   |   |         |   | 18,295 |   |
|  Accrued expenses                                                                                                                                             |   |        | 39,309   |   |         |   | 47,040 |   |
|  Franchise advertising contributions                                                                                                                          |   |        | 5,510    |   |         |   | 5,316 |   |
|  Current maturities of long-term debt and capital lease obligations                                                                                           |   |        | 499      |   |         |   | 382 |   |
|      Total current liabilities                                                                                                            |   |        | 61,093   |   |         |   | 71,033 |   |
| LONG-TERM DEBT, less current maturities                                                                                                                            |   |        | 327,478  |   |         |   | 316,534 |   |
| CAPITAL LEASE OBLIGATIONS, less current maturities                                                                                                                 |   |        | 11,169   |   |         |   | 13,715 |   |
| DEFERRED RENT                                                                                                                                                      |   |        | 16,549   |   |         |   | 15,343 |   |
| OTHER LIABILITIES                                                                                                                                                  |   |        | 20,306   |   |         |   | 17,741 |   |
|                                                                                                                                                               |   |        |     |   |         |   |   |   |
| DEFICIT:                                                                                                                                                           |   |        |     |   |         |   |   |   |
| Common stock, $.01 par value; 100,000 shares authorized;                                                                                                           |   |        |     |   |         |   |   |   |
|      10,820 issued and outstanding                                                                                                        |   |        | 1        |   |         |   | 1 |   |
| Additional paid-in capital                                                                                                                                         |   |        | 150,870  |   |         |   | 149,851 |   |
| Accumulated other comprehensive income (loss)                                                                                                                      |   |        | 45       |   |         |   | (4 | ) |
| Accumulated deficit                                                                                                                                                |   |        | (287,803 | )      |         |   | (260,921 | ) |
|      Total PMCI stockholder's deficit                                                                                                     |   |        | (136,887 | )      |         |   | (111,073 | ) |
| Noncontrolling interests                                                                                                                                           |   |        | 185      |   |         |   | 215 |   |
|      Total deficit                                                                                                                        |   |        | (136,702 | )      |         |   | (110,858 | ) |
| TOTAL LIABILITIES AND DEFICIT                                                                                                                                      |   | $           | 299,893  |   |         |   | 323,508 |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                           |   | Year-to-Date    |    |   | Year-to-Date    |   |
|----------------------------------------------------------------|--------|-----------------|---------|--------|-----------------|--------|
|                                                           |   | Ended           |    |   | Ended           |   |
|                                                           |   | October 4, 2009 |    |   | October 5, 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                          |   |            |    |   |            |   |
| Net loss                                                       |   | $               | (26,808 | )      |            |   | (46,049 | ) |
|                                                           |   |            |    |   |            |   |   |   |
| Adjustments to reconcile net loss to net cash used in          |   |            |    |   |            |   |   |   |
|  operating activities:                                    |   |            |    |   |            |   |   |   |
|   Depreciation and amortization                      |   |            | 18,411  |   |            |   | 19,111 |   |
|   Asset impairments                                  |   |            | 571     |   |            |   | 987 |   |
|   Amortization of debt discount                      |   |            | 1,184   |   |            |   | 291 |   |
|   Other non-cash income and expense items            |   |            | (2,427  | )      |            |   | (134 | ) |
|   Loss (gain) on disposition of assets               |   |            | 824     |   |            |   | (373 | ) |
|   Goodwill impairment                                |   |            | -       |   |            |   | 20,202 |   |
|   Loss on extinguishment of debt                     |   |            | -       |   |            |   | 2,952 |   |
|   Equity in net loss of unconsolidated partnership   |   |            | 25      |   |            |   | 17 |   |
|   Net changes in operating assets and liabilities    |   |            | 3,383   |   |            |   | (16,043 | ) |
|   Total adjustments                                  |   |            | 21,971  |   |            |   | 27,010 |   |
| Net cash used in operating activities                          |   |            | (4,837  | )      |            |   | (19,039 | ) |
|                                                           |   |            |    |   |            |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                          |   |            |    |   |            |   |   |   |
| Purchases of property and equipment                            |   |            | (5,941  | )      |            |   | (15,596 | ) |
| Proceeds from sale of assets                                   |   |            | 494     |   |            |   | 515 |   |
| Net cash used in investing activities                          |   |            | (5,447  | )      |            |   | (15,081 | ) |
|                                                           |   |            |    |   |            |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                          |   |            |    |   |            |   |   |   |
| Proceeds from terminated revolver                              |   |            | -       |   |            |   | 53,000 |   |
| Repayment of terminated revolver                               |   |            | -       |   |            |   | (73,000 | ) |
| Proceeds from Revolver                                         |   |            | 26,501  |   |            |   | 8,604 |   |
| Repayment of Revolver                                          |   |            | (16,726 | )      |            |   | - |   |
| Proceeds from Secured Notes, net of $7,537 discount            |   |            | -       |   |            |   | 124,463 |   |
| Repayment of term loan                                         |   |            | -       |   |            |   | (98,750 | ) |
| Repayment of capital lease obligations                         |   |            | (318    | )      |            |   | (330 | ) |
| Repayment of other debt                                        |   |            | (15     | )      |            |   | (15 | ) |
| Debt financing costs                                           |   |            | (142    | )      |            |   | (9,903 | ) |
| Lessor financing of new restaurants                            |   |            | -       |   |            |   | 2,286 |   |
| Distributions to noncontrolling interest holders               |   |            | (104    | )      |            |   | (258 | ) |
| Capital contributions                                          |   |            | -       |   |            |   | 12,500 |   |
| Repurchase of equity ownership units in P&MC's Holding LLC |   |            | -       |   |            |   | (277 | ) |
| Net cash provided by financing activities                      |   |            | 9,196   |   |            |   | 18,320 |   |
|                                                           |   |            |    |   |            |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                      |   |            | (1,088  | )      |            |   | (15,800 | ) |
|                                                           |   |            |    |   |            |   |   |   |
| CASH AND CASH EQUIVALENTS:                                     |   |            |    |   |            |   |   |   |
|   Balance, beginning of period                       |   |            | 4,613   |   |            |   | 19,032 |   |
|   Balance, end of period                             |   | $               | 3,525   |   |            |   | 3,232 |   |

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Table of Contents

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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Table of Contents

|   |              |   | Quarter |            |    | Quarter |            |   | Year-to-Date |            |   | Year-to-Date |            |
|--------|-------------------|--------|---------|-----------------|---------|---------|-----------------|--------|--------------|-----------------|--------|--------------|-----------------|
| # of   |              |   | Ended   |            |    | Ended   |            |   | Ended        |            |   | Ended        |            |
|   | Restaurants(2009) |   |    | October 4, 2009 |    |    | October 5, 2008 |   |         | October 4, 2009 |   |         | October 5, 2008 |   |
|   |              |   |    |            |    |    |            |   |         |            |   |         |            |   |
|   | 40                |   |    | $               | 447,000 |    |            |   | 462,000      |            |   |         | 1,446,000       |   |   |   | 1,517,000 |   |
|   | 27                |   |    |            | 337,000 |    |            |   | 348,000      |            |   |         | 1,100,000       |   |   |   | 1,131,000 |   |
|   | 21                |   |    |            | 346,000 |    |            |   | 359,000      |            |   |         | 1,123,000       |   |   |   | 1,179,000 |   |

|   |              |   | Quarter |            |   | Quarter |            |   | Year-to-Date |            |   | Year-to-Date |            |
|--------|-------------------|--------|---------|-----------------|--------|---------|-----------------|--------|--------------|-----------------|--------|--------------|-----------------|
| # of   |              |   | Ended   |            |   | Ended   |            |   | Ended        |            |   | Ended        |            |
|   | Restaurants(2009) |   |    | October 4, 2009 |   |    | October 5, 2008 |   |         | October 4, 2009 |   |         | October 5, 2008 |   |
|   |              |   |    |            |   |    |            |   |         |            |   |         |            |   |
|   | 4                 |   |    | $               | 60,000 |    |            |   | 121,000      |            |   |         | 280,000         |   |   |   | 434,000 |   |
|   | 4                 |   |    |            | 78,000 |    |            |   | 101,000      |            |   |         | 279,000         |   |   |   | 369,000 |   |
|   | 4                 |   |    |            | 64,000 |    |            |   | 72,000       |            |   |         | 202,000         |   |   |   | 244,000 |   |

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Table of Contents

|                                                       |   | Year-to-Date    |   |   | Year-to-Date    |   |
|------------------------------------------------------------|--------|-----------------|--------|--------|-----------------|--------|
|                                                       |   | Ended           |   |   | Ended           |   |
|                                                       |   | October 4, 2009 |   |   | October 5, 2008 |   |
| Decrease (increase)  in:                         |   |            |   |   |            |   |
|   Restricted cash                                |   | $               | 2,100  |   |            |   | - |   |
|   Receivables                                    |   |            | 3,900  |   |            |   | (2,176 | ) |
|   Inventories                                    |   |            | 894    |   |            |   | (2,437 | ) |
|   Prepaid expenses and other current assets      |   |            | (1,474 | )      |            |   | (275 | ) |
|   Other assets                                   |   |            | 1,055  |   |            |   | 2,071 |   |
|                                                       |   |            |   |   |            |   |   |   |
| Increase (decrease) in:                                    |   |            |   |   |            |   |   |   |
|   Accounts payable                               |   |            | (2,518 | )      |            |   | (1,538 | ) |
|   Accrued expenses and other current liabilities |   |            | (4,345 | )      |            |   | (11,036 | ) |
|   Other liabilities                              |   |            | 3,771  |   |            |   | (652 | ) |
| Net changes in operating assets and liabilities            |   | $               | 3,383  |   |            |   | (16,043 | ) |

|                         | Year-to-Date         |   | Year-to-Date    |   |
|------------------------------|----------------------|--------|-----------------|--------|
|                         | Ended                |   | Ended           |   |
|                         | October 4, 2009 |   | October 5, 2008 |   |
| Cash paid for interest       |                 | $      | 32,600          |   |   |   | 29,111 |   |
| Income taxes paid (refunded) |                 |   | (1,060          | )      |   |   | 396 |   |

|                             |   | October 4,2009 |    |   | December 28,2008 |   |
|---------------------------------------|--------|----------------|---------|--------|------------------|--------|
| Amortizing intangible assets:         |   |           |    |   |             |   |
| Franchise agreements                  |   | $              | 35,000  |   |             |   | 35,000 |   |
| Customer relationships                |   |           | 13,300  |   |             |   | 13,300 |   |
| Acquired franchise rights             |   |           | 11,076  |   |             |   | 11,076 |   |
| Design prototype                      |   |           | 834     |   |             |   | 834 |   |
| Subtotal                              |   |           | 60,210  |   |             |   | 60,210 |   |
| Less — accumulated amortization |   |           | (21,774 | )      |             |   | (19,963 | ) |
| Net amortizing intangible assets      |   |           | 38,436  |   |             |   | 40,247 |   |
| Nonamortizing intangible asset:       |   |           |    |   |             |   |   |   |
| Tradenames                            |   |           | 110,600 |   |             |   | 110,600 |   |
| Total intangible assets               |   | $              | 149,036 |   |             |   | 150,847 |   |

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|                                  | October 4,2009 |   |   | December 28,2008 |   |
|---------------------------------------|----------------|--------|--------|------------------|--------|
| Payroll and related benefits          |           | $      | 14,558 |             |   |   | 15,017 |   |
| Interest                              |           |   | 6,710  |             |   |   | 9,634 |   |
| Gift cards and gift certificates      |           |   | 2,813  |             |   |   | 7,446 |   |
| Property, real estate and sales taxes |           |   | 5,077  |             |   |   | 4,118 |   |
| Insurance                             |           |   | 2,140  |             |   |   | 1,874 |   |
| Advertising                           |           |   | 1,037  |             |   |   | 978 |   |
| Other                                 |           |   | 6,974  |             |   |   | 7,973 |   |
| Total accrued expenses                |           | $      | 39,309 |             |   |   | 47,040 |   |

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|                        |   | Quarter         |    |   | Quarter         |   |    |   | Year-to-Date    |   |                 | Year-to-Date    |   |              |
|-----------------------------|--------|-----------------|---------|--------|-----------------|--------|---------|--------|-----------------|--------|----------------------|-----------------|--------|-------------------|
|                        |   | Ended           |    |   | Ended           |   |    |   | Ended           |   |                 | Ended           |   |              |
| Revenues                    |   | October 4, 2009 |    |   | October 5, 2008 |   |    |   | October 4, 2009 |   |                 | October 5, 2008 |   |              |
|                        |   |            |    |   |            |   |    |   |            |   |                 |            |   |              |
| Restaurant operations       |   | $               | 99,781  |   |            |   | 108,374 |   |            |   |                 | 355,501         |   |              |   | 381,761 |   |   |
| Franchise operations        |   |            | 5,259   |   |            |   | 5,631   |   |            |   |                 | 17,507          |   |              |   | 18,800 |   |   |
| Foxtail                     |   |            | 13,362  |   |            |   | 16,133  |   |            |   |                 | 43,868          |   |              |   | 49,599 |   |   |
| Intersegment revenue        |   |            | (4,057  | )      |            |   | (3,297  | )      |            |   |                 | (14,345         | )      |              |   | (12,728 | ) |   |
| Other                       |   |            | 1,125   |   |            |   | 1,060   |   |            |   |                 | 4,068           |   |              |   | 3,835 |   |   |
| Total                       |   | $               | 115,470 |   |            |   | 127,901 |   |            |   |                 | 406,599         |   |              |   | 441,267 |   |   |
|  Segment profit (loss) |   |            |    |   |            |   |    |   |            |   |                 |            |   |              |   |   |   |   |
|                        |   |            |    |   |            |   |    |   |            |   |                 |            |   |              |   |   |   |   |
| Restaurant operations       |   |            | 2,252   |   |            |   | 4,639   |   |            |   |                 | 16,664          |   |              |   | 18,244 |   |   |
| Franchise operations        |   |            | 4,786   |   |            |   | (13,411 | )      |  (a)       |   |                 | 16,055          |   |              |   | (1,327 | ) |  (a) |
| Foxtail                     |   |            | 903     |   |            |   | (2,901  | )      |  (a)       |   |                 | 2,226           |   |              |   | (4,786 | ) |  (a) |
| Other                       |   |            | (19,189 | )      |            |   | (18,804 | )      |            |   |                 | (61,827         | )      |              |   | (58,261 | ) |   |
| Total                       |   | $               | (11,248 | )      |            |   | (30,477 | )      |  (a)       |   |                 | (26,882         | )      |              |   | (46,130 | ) |  (a) |
|                        |   |            |    |   |            |   |    |   |            |   |                 |            |   |              |   |   |   |   |
| Segment assets              |   |            |    |   |            |   |    |   |            |   | October 4, 2009 |            |   | December 28, 2008 |   |   |
|                        |   |            |    |   |            |   |    |   |            |   |                 |            |   |              |   |   |   |   |
| Restaurant operations       |   |            | 122,093 |   |            |   | 131,135 |   |            |
| Franchise operations        |   |            | 102,199 |   |            |   | 102,719 |   |            |
| Foxtail                     |   |            | 30,310  |   |            |   | 37,575  |   |            |
| Other                       |   |            | 45,291  |   |            |   | 52,079  |   |            |
| Total                       |   | $               | 299,893 |   |            |   | 323,508 |   |            |

|   |  (a)   In the fiscal quarter ended October 5, 2008, the Company recorded a non-cash goodwill impairment charge of $20,202,000, of which $18,538,000 was charged to the franchise segment and $1,664,000 was charged to the Foxtail segment. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Quarter         |   |   | Quarter         |   |   | Year-to-Date    |   |   | Year-to-Date    |   |
|--------------------------------------------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                                                         |   | Ended           |   |   | Ended           |   |   | Ended           |   |   | Ended           |   |
|                                                         |   | October 4, 2009 |   |   | October 5, 2008 |   |   | October 4, 2009 |   |   | October 5, 2008 |   |
| General and administrative expenses                          |   | $               | 9,271  |   |            |   | 8,711  |            |   |   | 30,500          |   |   |   | 29,812 |   |
| Depreciation and amortization expenses                       |   |            | 786    |   |            |   | 781    |            |   |   | 2,607           |   |   |   | 2,565 |   |
| Interest expense, net                                        |   |            | 10,260 |   |            |   | 8,568  |            |   |   | 34,005          |   |   |   | 26,871 |   |
| Loss (gain) on disposition of assets, net                    |   |            | 48     |   |            |   | (409   | )               |   |   | 823             |   |   |   | (373 | ) |
| Asset write-down                                             |   |            | 139    |   |            |   | 470    |            |   |   | 572             |   |   |   | 987 |   |
| Loss on extinguishment of debt                               |   |            | -      |   |            |   | 2,952  |            |   |   | -               |   |   |   | 2,952 |   |
| Provision for (benefit from) income taxes                    |   |            | 142    |   |            |   | (1,260 | )               |   |   | 142             |   |   |   | (938 | ) |
| Net (loss) earnings attributable to noncontrolling interests |   |            | (5     | )      |            |   | 5      |            |   |   | 74              |   |   |   | 81 |   |
| Licensing revenue                                            |   |            | (1,081 | )      |            |   | (1,006 | )               |   |   | (3,889          | )      |   |   | (3,626 | ) |
| Other                                                        |   |            | (371   | )      |            |   | (8     | )               |   |   | (3,007          | )      |   |   | (70 | ) |
| Total other segment loss                                     |   | $               | 19,189 |   |            |   | 18,804 |            |   |   | 61,827          |   |   |   | 58,261 |   |

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|                                                |   | 2009   |   |
|-----------------------------------------------------|--------|--------|--------|
| Unrecognized tax benefit - beginning of fiscal year |   | $      | 1,359  |   |
| 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                       |   |   | (223   | ) |
| Reductions for lapse of statute of limitations      |   |   | (166   | ) |
| Unrecognized tax benefit - as of October 4, 2009    |   | $      | 970    |   |

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|                                                             |   | Year-to-Date Ended October 4, 2009 |     |   | Year-to-Date Ended October 5, 2008 |   |
|------------------------------------------------------------------|--------|------------------------------------|----------|--------|------------------------------------|--------|
|                                                             |   | Total PMCI                         |     |   |                               |   |   |   |   |   | Total PMCI |   |   |   |   |   |   |   |
|                                                             |   | Stockholder's                      |     |   | Noncontrolling                     |   |   | Total |   |   | Stockholder's |   |   | Noncontrolling |   |   | Total |   |
|                                                             |   | Deficit                            |     |   | Interests                          |   |   | Deficit |   |   | Deficit |   |   | Interests |   |   | Deficit |   |
|                                                             |   |                               |     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                     |   | $                                  | (111,073 | )      |                               |   | 215 |   |   |   | (110,858 | ) |   |   | (69,958 | ) |   |   | 333 |   |   |   | (69,625 | ) |
|                                                             |   |                               |     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital contributions                                            |   |                               | -        |   |                               |   | - |   |   |   | - |   |   |   | 12,500 |   |   |   | - |   |   |   | 12,500 |   |
|                                                             |   |                               |     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Lease termination by related party (non-cash)                    |   |                               | 1,019    |   |                               |   | - |   |   |   | 1,019 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                             |   |                               |     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution of equity ownership units in P&MC's Holding LLC |   |                               | -        |   |                               |   | - |   |   |   | - |   |   |   | (277 | ) |   |   | - |   |   |   | (277 | ) |
|                                                             |   |                               |     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to noncontrolling interest holders                 |   |                               | -        |   |                               |   | (104 | ) |   |   | (104 | ) |   |   | - |   |   |   | (258 | ) |   |   | (258 | ) |
|                                                             |   |                               |     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) earnings                                              |   |                               | (26,882  | )      |                               |   | 74 |   |   |   | (26,808 | ) |   |   | (46,130 | ) |   |   | 81 |   |   |   | (46,049 | ) |
| Currency translation adjustment                                  |   |                               | 49       |   |                               |   | - |   |   |   | 49 |   |   |   | (49 | ) |   |   | - |   |   |   | (49 | ) |
| Total comprehensive loss                                         |   |                               |     |   |                               |   |   |   |   |   | (26,759 | ) |   |   |   |   |   |   |   |   |   |   | (46,098 | ) |
| Balance, end of period                                           |   | $                                  | (136,887 | )      |                               |   | 185 |   |   |   | (136,702 | ) |   |   | (103,914 | ) |   |   | 156 |   |   |   | (103,758 | ) |

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| Consolidating Statement of Operations for the Quarter ended October 4, 2009 (unaudited; in thousands): |   |
|--------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                   |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                             |   | $ | 70,456 |   |   |   | 33,602 |   |   |   | 5,028 |   |   |   | - |   |   |   | 109,086 |   |
| Franchise and other revenue                                                                            |   |   | 4,570 |   |   |   | 1,814 |   |   |   | - |   |   |   | - |   |   |   | 6,384 |   |
|    Total revenues                                                                       |   |   | 75,026 |   |   |   | 35,416 |   |   |   | 5,028 |   |   |   | - |   |   |   | 115,470 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                            |   |   | 18,074 |   |   |   | 8,728 |   |   |   | 1,256 |   |   |   | - |   |   |   | 28,058 |   |
|    Labor and benefits                                                                   |   |   | 24,080 |   |   |   | 13,428 |   |   |   | 1,966 |   |   |   | - |   |   |   | 39,474 |   |
|    Operating expenses                                                                   |   |   | 19,784 |   |   |   | 11,368 |   |   |   | 2,031 |   |   |   | - |   |   |   | 33,183 |   |
| General and administrative                                                                             |   |   | 8,805 |   |   |   | 1,508 |   |   |   | - |   |   |   | - |   |   |   | 10,313 |   |
| Depreciation and amortization                                                                          |   |   | 3,995 |   |   |   | 1,362 |   |   |   | 141 |   |   |   | - |   |   |   | 5,498 |   |
| Interest, net                                                                                          |   |   | 10,022 |   |   |   | 238 |   |   |   | - |   |   |   | - |   |   |   | 10,260 |   |
| Asset impairments and closed store expenses                                                            |   |   | 3 |   |   |   | 191 |   |   |   | (7 | ) |   |   | - |   |   |   | 187 |   |
| Other, net                                                                                             |   |   | (308 | ) |   |   | (84 | ) |   |   | - |   |   |   | - |   |   |   | (392 | ) |
|    Total costs and expenses                                                             |   |   | 84,455 |   |   |   | 36,739 |   |   |   | 5,387 |   |   |   | - |   |   |   | 126,581 |   |
| Loss before income taxes                                                                               |   |   | (9,429 | ) |   |   | (1,323 | ) |   |   | (359 | ) |   |   | - |   |   |   | (11,111 | ) |
| Provision for income taxes                                                                             |   |   | (142 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (142 | ) |
| Net loss                                                                                               |   |   | (9,571 | ) |   |   | (1,323 | ) |   |   | (359 | ) |   |   | - |   |   |   | (11,253 | ) |
| Less: net loss attributable to noncontrolling interests                                                |   |   | - |   |   |   | - |   |   |   | (5 | ) |   |   | - |   |   |   | (5 | ) |
| Equity in (loss) earnings of subsidiaries                                                              |   |   | (1,682 | ) |   |   | - |   |   |   | - |   |   |   | 1,682 |   |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                 |   | $ | (11,253 | ) |   |   | (1,323 | ) |   |   | (354 | ) |   |   | 1,682 |   |   |   | (11,248 | ) |

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| Consolidating Statement of Operations for the Quarter ended October 5, 2008 (unaudited; in thousands): |   |
|--------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                   |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                             |   | $ | 78,655 |   |   |   | 37,068 |   |   |   | 5,487 |   |   |   | - |   |   |   | 121,210 |   |
| Franchise and other revenue                                                                            |   |   | 4,867 |   |   |   | 1,824 |   |   |   | - |   |   |   | - |   |   |   | 6,691 |   |
|    Total revenues                                                                       |   |   | 83,522 |   |   |   | 38,892 |   |   |   | 5,487 |   |   |   | - |   |   |   | 127,901 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                            |   |   | 23,373 |   |   |   | 11,044 |   |   |   | 1,450 |   |   |   | - |   |   |   | 35,867 |   |
|    Labor and benefits                                                                   |   |   | 25,766 |   |   |   | 13,673 |   |   |   | 1,978 |   |   |   | - |   |   |   | 41,417 |   |
|    Operating expenses                                                                   |   |   | 20,994 |   |   |   | 11,112 |   |   |   | 2,134 |   |   |   | - |   |   |   | 34,240 |   |
| General and administrative                                                                             |   |   | 9,653 |   |   |   | 959 |   |   |   | - |   |   |   | - |   |   |   | 10,612 |   |
| Depreciation and amortization                                                                          |   |   | 4,151 |   |   |   | 1,408 |   |   |   | 182 |   |   |   | - |   |   |   | 5,741 |   |
| Interest, net                                                                                          |   |   | 8,328 |   |   |   | 240 |   |   |   | - |   |   |   | - |   |   |   | 8,568 |   |
| Asset impairments and closed store expenses                                                            |   |   | (246 | ) |   |   | 286 |   |   |   | 21 |   |   |   | - |   |   |   | 61 |   |
| Goodwill impairment                                                                                    |   |   | 20,202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,202 |   |
| Loss on extinguishment of debt                                                                         |   |   | 2,952 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,952 |   |
| Other, net                                                                                             |   |   | (27 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (27 | ) |
|    Total costs and expenses                                                             |   |   | 115,146 |   |   |   | 38,722 |   |   |   | 5,765 |   |   |   | - |   |   |   | 159,633 |   |
| Income (loss) before income taxes                                                                      |   |   | (31,624 | ) |   |   | 170 |   |   |   | (278 | ) |   |   | - |   |   |   | (31,732 | ) |
| Benefit from income taxes                                                                              |   |   | 1,260 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,260 |   |
| Net (loss) income                                                                                      |   |   | (30,364 | ) |   |   | 170 |   |   |   | (278 | ) |   |   | - |   |   |   | (30,472 | ) |
| Less: net earnings attributable to noncontrolling interests                                            |   |   | - |   |   |   | - |   |   |   | 5 |   |   |   | - |   |   |   | 5 |   |
| Equity in (loss) earnings of subsidiaries                                                              |   |   | (108 | ) |   |   | - |   |   |   | - |   |   |   | 108 |   |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                 |   | $ | (30,472 | ) |   |   | 170 |   |   |   | (283 | ) |   |   | 108 |   |   |   | (30,477 | ) |

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| Consolidating Statement of Operations for the Year-to-Date Period ended October 4, 2009 (unaudited; in thousands): |   |
|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                               |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                                         |   | $ | 244,047 |   |   |   | 122,183 |   |   |   | 18,794 |   |   |   | - |   |   |   | 385,024 |   |
| Franchise and other revenue                                                                                        |   |   | 14,961 |   |   |   | 6,614 |   |   |   | - |   |   |   | - |   |   |   | 21,575 |   |
|    Total revenues                                                                                   |   |   | 259,008 |   |   |   | 128,797 |   |   |   | 18,794 |   |   |   | - |   |   |   | 406,599 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                                        |   |   | 63,837 |   |   |   | 32,612 |   |   |   | 4,884 |   |   |   | - |   |   |   | 101,333 |   |
|    Labor and benefits                                                                               |   |   | 81,825 |   |   |   | 46,922 |   |   |   | 6,956 |   |   |   | - |   |   |   | 135,703 |   |
|    Operating expenses                                                                               |   |   | 65,562 |   |   |   | 38,344 |   |   |   | 7,050 |   |   |   | - |   |   |   | 110,956 |   |
| General and administrative                                                                                         |   |   | 29,885 |   |   |   | 4,646 |   |   |   | - |   |   |   | - |   |   |   | 34,531 |   |
| Depreciation and amortization                                                                                      |   |   | 13,449 |   |   |   | 4,492 |   |   |   | 470 |   |   |   | - |   |   |   | 18,411 |   |
| Interest, net                                                                                                      |   |   | 33,318 |   |   |   | 687 |   |   |   | - |   |   |   | - |   |   |   | 34,005 |   |
| Asset impairments and closed store expenses                                                                        |   |   | 827 |   |   |   | 486 |   |   |   | 82 |   |   |   | - |   |   |   | 1,395 |   |
| Other, net                                                                                                         |   |   | (1,409 | ) |   |   | (1,660 | ) |   |   | - |   |   |   | - |   |   |   | (3,069 | ) |
|    Total costs and expenses                                                                         |   |   | 287,294 |   |   |   | 126,529 |   |   |   | 19,442 |   |   |   | - |   |   |   | 433,265 |   |
| Income (loss) before income taxes                                                                                  |   |   | (28,286 | ) |   |   | 2,268 |   |   |   | (648 | ) |   |   | - |   |   |   | (26,666 | ) |
| Provision for income taxes                                                                                         |   |   | (142 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (142 | ) |
| Net (loss) income                                                                                                  |   |   | (28,428 | ) |   |   | 2,268 |   |   |   | (648 | ) |   |   | - |   |   |   | (26,808 | ) |
| Less: net earnings attributable to noncontrolling interests                                                        |   |   | - |   |   |   | - |   |   |   | 74 |   |   |   | - |   |   |   | 74 |   |
| Equity in earnings (loss) of subsidiaries                                                                          |   |   | 1,620 |   |   |   | - |   |   |   | - |   |   |   | (1,620 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                             |   | $ | (26,808 | ) |   |   | 2,268 |   |   |   | (722 | ) |   |   | (1,620 | ) |   |   | (26,882 | ) |

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| Consolidating Statement of Operations for the Year-to-Date Period ended October 5, 2008 (unaudited; in thousands): |   |
|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                               |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                                                                                                         |   | $ | 265,576 |   |   |   | 132,772 |   |   |   | 20,284 |   |   |   | - |   |   |   | 418,632 |   |
| Franchise and other revenue                                                                                        |   |   | 15,742 |   |   |   | 6,893 |   |   |   | - |   |   |   | - |   |   |   | 22,635 |   |
|    Total revenues                                                                                   |   |   | 281,318 |   |   |   | 139,665 |   |   |   | 20,284 |   |   |   | - |   |   |   | 441,267 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (excluding depreciation shown below):                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Food cost                                                                                        |   |   | 77,739 |   |   |   | 40,150 |   |   |   | 5,539 |   |   |   | - |   |   |   | 123,428 |   |
|    Labor and benefits                                                                               |   |   | 88,779 |   |   |   | 48,194 |   |   |   | 7,132 |   |   |   | - |   |   |   | 144,105 |   |
|    Operating expenses                                                                               |   |   | 69,820 |   |   |   | 38,363 |   |   |   | 7,178 |   |   |   | - |   |   |   | 115,361 |   |
| General and administrative                                                                                         |   |   | 31,688 |   |   |   | 4,039 |   |   |   | - |   |   |   | - |   |   |   | 35,727 |   |
| Depreciation and amortization                                                                                      |   |   | 13,672 |   |   |   | 4,874 |   |   |   | 565 |   |   |   | - |   |   |   | 19,111 |   |
| Interest, net                                                                                                      |   |   | 26,008 |   |   |   | 863 |   |   |   | - |   |   |   | - |   |   |   | 26,871 |   |
| Asset impairments and closed store expenses                                                                        |   |   | 73 |   |   |   | 490 |   |   |   | 51 |   |   |   | - |   |   |   | 614 |   |
| Goodwill impairment                                                                                                |   |   | 20,202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,202 |   |
| Loss on extinguishment of debt                                                                                     |   |   | 2,952 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,952 |   |
| Other, net                                                                                                         |   |   | (117 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (117 | ) |
|    Total costs and expenses                                                                         |   |   | 330,816 |   |   |   | 136,973 |   |   |   | 20,465 |   |   |   | - |   |   |   | 488,254 |   |
| Income (loss) before income taxes                                                                                  |   |   | (49,498 | ) |   |   | 2,692 |   |   |   | (181 | ) |   |   | - |   |   |   | (46,987 | ) |
| Benefit from income taxes                                                                                          |   |   | 938 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 938 |   |
| Net (loss) income                                                                                                  |   |   | (48,560 | ) |   |   | 2,692 |   |   |   | (181 | ) |   |   | - |   |   |   | (46,049 | ) |
| Less: net earnings attributable to noncontrolling interests                                                        |   |   | - |   |   |   | - |   |   |   | 81 |   |   |   | - |   |   |   | 81 |   |
| Equity in earnings (loss) of subsidiaries                                                                          |   |   | 2,511 |   |   |   | - |   |   |   | - |   |   |   | (2,511 | ) |   |   | - |   |
| Net (loss) income attributable to Perkins & Marie Callender's Inc.                                             |   | $ | (46,049 | ) |   |   | 2,692 |   |   |   | (262 | ) |   |   | (2,511 | ) |   |   | (46,130 | ) |

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Table of Contents

| Consolidating Balance Sheet as of October 4, 2009 (unaudited; in thousands):        |   |   |     |   |      |   |     |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
|                                                                                |   |   |     |   | Guarantor |   |     | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                |   | Issuer |     |   | WRG       |   |     | Guarantors |   |   | Eliminations |   |   | PMCI |   |
| ASSETS                                                                              |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                     |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $      | 1,565    |   |      |   | 1,361    |   |   |   | 599 |   |   |   | - |   |   |   | 3,525 |   |
| Restricted cash                                                                     |   |   | 7,303    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 7,303 |   |
| Receivables, less allowances for   doubtful accounts                 |   |   | 11,771   |   |      |   | 5,589    |   |   |   | 30 |   |   |   | - |   |   |   | 17,390 |   |
| Inventories                                                                         |   |   | 8,495    |   |      |   | 2,718    |   |   |   | 193 |   |   |   | - |   |   |   | 11,406 |   |
| Prepaid expenses and other current assets                                           |   |   | 3,504    |   |      |   | 959      |   |   |   | 7 |   |   |   | - |   |   |   | 4,470 |   |
|      Total current assets                                  |   |   | 32,638   |   |      |   | 10,627   |   |   |   | 829 |   |   |   | - |   |   |   | 44,094 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |   | 54,933   |   |      |   | 22,751   |   |   |   | 2,282 |   |   |   | - |   |   |   | 79,966 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |   | -        |   |      |   | 14       |   |   |   | 9 |   |   |   | - |   |   |   | 23 |   |
| GOODWILL                                                                            |   |   | 9,836    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 9,836 |   |
| INTANGIBLE ASSETS                                                                   |   |   | 148,913  |   |      |   | 123      |   |   |   | - |   |   |   | - |   |   |   | 149,036 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |   | (82,789  | )      |      |   | -        |   |   |   | - |   |   |   | 82,789 |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |   | 86,628   |   |      |   | -        |   |   |   | - |   |   |   | (86,628 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |   | 15,178   |   |      |   | 1,550    |   |   |   | 210 |   |   |   | - |   |   |   | 16,938 |   |
| TOTAL ASSETS                                                                        |   | $      | 265,337  |   |      |   | 35,065   |   |   |   | 3,330 |   |   |   | (3,839 | ) |   |   | 299,893 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                    |   | $      | 9,513    |   |      |   | 5,878    |   |   |   | 384 |   |   |   | - |   |   |   | 15,775 |   |
| Accrued expenses                                                                    |   |   | 27,818   |   |      |   | 10,253   |   |   |   | 1,238 |   |   |   | - |   |   |   | 39,309 |   |
| Franchise advertising contributions                                                 |   |   | 5,510    |   |      |   | -        |   |   |   | - |   |   |   | - |   |   |   | 5,510 |   |
| Current maturities of long-term debt and   capital lease obligations |   |   | 182      |   |      |   | 317      |   |   |   | - |   |   |   | - |   |   |   | 499 |   |
|      Total current liabilities                             |   |   | 43,023   |   |      |   | 16,448   |   |   |   | 1,622 |   |   |   | - |   |   |   | 61,093 |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |   | 327,475  |   |      |   | 3        |   |   |   | - |   |   |   | - |   |   |   | 327,478 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |   | 8,128    |   |      |   | 3,041    |   |   |   | - |   |   |   | - |   |   |   | 11,169 |   |
| DEFERRED RENT                                                                       |   |   | 11,721   |   |      |   | 4,761    |   |   |   | 67 |   |   |   | - |   |   |   | 16,549 |   |
| OTHER LIABILITIES                                                                   |   |   | 11,877   |   |      |   | 8,429    |   |   |   | - |   |   |   | - |   |   |   | 20,306 |   |
| DUE TO PARENT                                                                       |   |   | -        |   |      |   | 85,166   |   |   |   | 1,462 |   |   |   | (86,628 | ) |   |   | - |   |
|                                                                                |   |   |     |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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                                                      |   |   | (287,803 | )      |      |   | (156,280 | ) |   |   | (6 | ) |   |   | 156,286 |   |   |   | (287,803 | ) |
|   Total PMCI stockholder's (deficit) investment                           |   |   | (136,887 | )      |      |   | (82,783  | ) |   |   | (6 | ) |   |   | 82,789 |   |   |   | (136,887 | ) |
| Noncontrolling interests                                                            |   |   | -        |   |      |   | -        |   |   |   | 185 |   |   |   | - |   |   |   | 185 |   |
|    Total equity (deficit)                                            |   |   | (136,887 | )      |      |   | (82,783  | ) |   |   | 179 |   |   |   | 82,789 |   |   |   | (136,702 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $      | 265,337  |   |      |   | 35,065   |   |   |   | 3,330 |   |   |   | (3,839 | ) |   |   | 299,893 |   |

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Table of Contents

|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|-----------|--------|----------|------------|--------|--------|--------------|--------|--------|--------------|---------|
| Consolidating Balance Sheet as of December 28, 2008 (in thousands):                 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
|                                                                                |   |   |     |   | Guarantor |   |     | Non-       |   |   |         |   |   | Consolidated |    |
|                                                                                |   | Issuer |     |   | WRG       |   |     | Guarantors |   |   | Eliminations |   |   | PMCI         |    |
| ASSETS                                                                              |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
| CURRENT ASSETS:                                                                     |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |
| Cash and cash equivalents                                                           |   | $      | 2,155    |   |      |   | 1,662    |       |   |   | 796          |   |   |         | -       |   |   |   | 4,613 |   |
| Restricted cash                                                                     |   |   | 10,140   |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 10,140 |   |
| Receivables, less allowances for   doubtful accounts                 |   |   | 14,392   |   |      |   | 6,955    |       |   |   | 39           |   |   |         | -       |   |   |   | 21,386 |   |
| Inventories                                                                         |   |   | 8,145    |   |      |   | 3,893    |       |   |   | 262          |   |   |         | -       |   |   |   | 12,300 |   |
| Prepaid expenses and other current assets                                           |   |   | 2,721    |   |      |   | 269      |       |   |   | 6            |   |   |         | -       |   |   |   | 2,996 |   |
|      Total current assets                                  |   |   | 37,553   |   |      |   | 12,779   |       |   |   | 1,103        |   |   |         | -       |   |   |   | 51,435 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                         |   |   | 65,020   |   |      |   | 26,357   |       |   |   | 2,123        |   |   |         | -       |   |   |   | 93,500 |   |
| INVESTMENT IN   UNCONSOLIDATED PARTNERSHIP                           |   |   | -        |   |      |   | 39       |       |   |   | 9            |   |   |         | -       |   |   |   | 48 |   |
| GOODWILL                                                                            |   |   | 9,836    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 9,836 |   |
| INTANGIBLE ASSETS                                                                   |   |   | 150,676  |   |      |   | 171      |       |   |   | -            |   |   |         | -       |   |   |   | 150,847 |   |
| INVESTMENTS IN SUBSIDIARIES                                                         |   |   | (85,354  | )      |      |   | -        |       |   |   | -            |   |   |         | 85,354  |   |   |   | - |   |
| DUE FROM SUBSIDIARIES                                                               |   |   | 88,948   |   |      |   | -        |       |   |   | -            |   |   |         | (88,948 | ) |   |   | - |   |
| OTHER ASSETS                                                                        |   |   | 16,195   |   |      |   | 1,437    |       |   |   | 210          |   |   |         | -       |   |   |   | 17,842 |   |
| TOTAL ASSETS                                                                        |   | $      | 282,874  |   |      |   | 40,783   |       |   |   | 3,445        |   |   |         | (3,594  | ) |   |   | 323,508 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                    |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Accounts payable                                                                    |   | $      | 11,090   |   |      |   | 6,731    |       |   |   | 474          |   |   |         | -       |   |   |   | 18,295 |   |
| Accrued expenses                                                                    |   |   | 33,575   |   |      |   | 12,123   |       |   |   | 1,342        |   |   |         | -       |   |   |   | 47,040 |   |
| Franchise advertising contributions                                                 |   |   | 5,316    |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 5,316 |   |
| Current maturities of long-term debt and   capital lease obligations |   |   | 169      |   |      |   | 213      |       |   |   | -            |   |   |         | -       |   |   |   | 382 |   |
|      Total current liabilities                             |   |   | 50,150   |   |      |   | 19,067   |       |   |   | 1,816        |   |   |         | -       |   |   |   | 71,033 |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| LONG-TERM DEBT, less current   maturities                            |   |   | 316,516  |   |      |   | 18       |       |   |   | -            |   |   |         | -       |   |   |   | 316,534 |   |
| CAPITAL LEASE OBLIGATIONS, less   current maturities                 |   |   | 8,270    |   |      |   | 5,445    |       |   |   | -            |   |   |         | -       |   |   |   | 13,715 |   |
| DEFERRED RENT                                                                       |   |   | 10,180   |   |      |   | 5,089    |       |   |   | 74           |   |   |         | -       |   |   |   | 15,343 |   |
| OTHER LIABILITIES                                                                   |   |   | 8,831    |   |      |   | 8,910    |       |   |   | -            |   |   |         | -       |   |   |   | 17,741 |   |
| DUE TO PARENT                                                                       |   |   | -        |   |      |   | 88,324   |       |   |   | 624          |   |   |         | (88,948 | ) |   |   | - |   |
|                                                                                |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| EQUITY (DEFICIT):                                                                   |   |   |     |   |      |   |     |       |   |   |         |   |   |         |    |   |   |   |   |   |
| Common stock                                                                        |   |   | 1        |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 1 |   |
| Preferred stock                                                                     |   |   | -        |   |      |   | 63,277   |       |   |   | -            |   |   |         | (63,277 | ) |   |   | - |   |
| Capital in excess of par                                                            |   |   | -        |   |      |   | 9,338    |       |   |   | -            |   |   |         | (9,338  | ) |   |   | - |   |
| Additional paid-in capital                                                          |   |   | 149,851  |   |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | 149,851 |   |
| Treasury stock                                                                      |   |   | -        |   |      |   | (137     | )          |   |   | -            |   |   |         | 137     |   |   |   | - |   |
| Accumulated other comprehensive income                                              |   |   | (4       | )      |      |   | -        |       |   |   | -            |   |   |         | -       |   |   |   | (4 | ) |
| Accumulated (deficit) earnings                                                      |   |   | (260,921 | )      |      |   | (158,548 | )          |   |   | 716          |   |   |         | 157,832 |   |   |   | (260,921 | ) |
|   Total PMCI stockholder's (deficit) investment                           |   |   | (111,073 | )      |      |   | (86,070  | )          |   |   | 716          |   |   |         | 85,354  |   |   |   | (111,073 | ) |
| Noncontrolling interests                                                            |   |   | -        |   |      |   | -        |       |   |   | 215          |   |   |         | -       |   |   |   | 215 |   |
|   Total equity (deficit)                                                  |   |   | (111,073 | )      |      |   | (86,070  | )          |   |   | 931          |   |   |         | 85,354  |   |   |   | (110,858 | ) |
| TOTAL LIABILITIES AND EQUITY (DEFICIT)                                              |   | $      | 282,874  |   |      |   | 40,783   |       |   |   | 3,445        |   |   |         | (3,594  | ) |   |   | 323,508 |   |

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Table of Contents

| Consolidating Statement of Cash Flows for the Year-to-Date Period ended October 4, 2009 (unaudited; in thousands): |   |
|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                               |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                                  |   | $ | (26,808 | ) |   |   | 2,268 |   |   |   | (648 | ) |   |   | (1,620 | ) |   |   | (26,808 | ) |
| Adjustments to reconcile net (loss) income to net cash                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries                                                                          |   |   | (1,620 | ) |   |   | - |   |   |   | - |   |   |   | 1,620 |   |   |   | - |   |
| Depreciation and amortization                                                                                      |   |   | 13,449 |   |   |   | 4,492 |   |   |   | 470 |   |   |   | - |   |   |   | 18,411 |   |
| Asset impairments                                                                                                  |   |   | 137 |   |   |   | 352 |   |   |   | 82 |   |   |   | - |   |   |   | 571 |   |
| Amortization of debt discount                                                                                      |   |   | 1,184 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,184 |   |
| Other non-cash income and expense items                                                                            |   |   | (1,035 | ) |   |   | (1,392 | ) |   |   | - |   |   |   | - |   |   |   | (2,427 | ) |
| Loss on disposition of assets                                                                                      |   |   | 690 |   |   |   | 134 |   |   |   | - |   |   |   | - |   |   |   | 824 |   |
| Equity in net loss of unconsolidated partnership                                                                   |   |   | - |   |   |   | 25 |   |   |   | - |   |   |   | - |   |   |   | 25 |   |
| Net changes in operating assets and liabilities                                                                    |   |   | 4,021 |   |   |   | (514 | ) |   |   | (124 | ) |   |   | - |   |   |   | 3,383 |   |
| Total adjustments                                                                                                  |   |   | 16,826 |   |   |   | 3,097 |   |   |   | 428 |   |   |   | 1,620 |   |   |   | 21,971 |   |
| Net cash (used in) provided by operating activities                                                                |   |   | (9,982 | ) |   |   | 5,365 |   |   |   | (220 | ) |   |   | - |   |   |   | (4,837 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                                |   |   | (2,918 | ) |   |   | (2,312 | ) |   |   | (711 | ) |   |   | - |   |   |   | (5,941 | ) |
| Proceeds from sale of assets                                                                                       |   |   | 487 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 494 |   |
| Net cash used in investing activities                                                                              |   |   | (2,431 | ) |   |   | (2,305 | ) |   |   | (711 | ) |   |   | - |   |   |   | (5,447 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from Revolver                                                                                             |   |   | 26,501 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 26,501 |   |
| Repayment of Revolver                                                                                              |   |   | (16,726 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (16,726 | ) |
| Repayment of capital lease obligations                                                                             |   |   | (130 | ) |   |   | (188 | ) |   |   | - |   |   |   | - |   |   |   | (318 | ) |
| Repayment of other debt                                                                                            |   |   | - |   |   |   | (15 | ) |   |   | - |   |   |   | - |   |   |   | (15 | ) |
| Debt financing costs                                                                                               |   |   | (142 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (142 | ) |
| Distributions to noncontrolling interest holders                                                                   |   |   | - |   |   |   | - |   |   |   | (104 | ) |   |   | - |   |   |   | (104 | ) |
| Intercompany financing                                                                                             |   |   | 2,320 |   |   |   | (3,158 | ) |   |   | 838 |   |   |   | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities                                                                |   |   | 11,823 |   |   |   | (3,361 | ) |   |   | 734 |   |   |   | - |   |   |   | 9,196 |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                                                          |   |   | (590 | ) |   |   | (301 | ) |   |   | (197 | ) |   |   | - |   |   |   | (1,088 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                                       |   |   | 2,155 |   |   |   | 1,662 |   |   |   | 796 |   |   |   | - |   |   |   | 4,613 |   |
| Balance, end of period                                                                                             |   | $ | 1,565 |   |   |   | 1,361 |   |   |   | 599 |   |   |   | - |   |   |   | 3,525 |   |

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| Consolidating Statement of Cash Flows for the Year-to-Date Period ended October 5, 2008 (unaudited; in thousands): |   |
|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   | Guarantor |   |   | Non- |   |   |   |   |   | Consolidated |   |
|                                                                                                               |   | Issuer |   |   | WRG |   |   | Guarantors |   |   | Eliminations |   |   | PMCI |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                                  |   | $ | (46,049 | ) |   |   | 2,692 |   |   |   | (181 | ) |   |   | (2,511 | ) |   |   | (46,049 | ) |
| Adjustments to reconcile net (loss) income to net cash                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| used in operating activities:                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in (loss) earnings of subsidiaries                                                                          |   |   | (2,511 | ) |   |   | - |   |   |   | - |   |   |   | 2,511 |   |   |   | - |   |
| Depreciation and amortization                                                                                      |   |   | 13,672 |   |   |   | 4,874 |   |   |   | 565 |   |   |   | - |   |   |   | 19,111 |   |
| Asset impairments                                                                                                  |   |   | 445 |   |   |   | 491 |   |   |   | 51 |   |   |   | - |   |   |   | 987 |   |
| Amortization of debt discount                                                                                      |   |   | 291 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 291 |   |
| Other non-cash income and expense items                                                                            |   |   | (206 | ) |   |   | 72 |   |   |   | - |   |   |   | - |   |   |   | (134 | ) |
| Gain on disposition of assets                                                                                      |   |   | (372 | ) |   |   | (1 | ) |   |   | - |   |   |   | - |   |   |   | (373 | ) |
| Goodwill impairment                                                                                                |   |   | 20,202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,202 |   |
| Loss on extinguishment of debt                                                                                     |   |   | 2,952 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,952 |   |
| Equity in net loss of unconsolidated partnership                                                                   |   |   | - |   |   |   | 17 |   |   |   | - |   |   |   | - |   |   |   | 17 |   |
| Net changes in operating assets and liabilities                                                                    |   |   | (6,421 | ) |   |   | (8,956 | ) |   |   | (666 | ) |   |   | - |   |   |   | (16,043 | ) |
| Total adjustments                                                                                                  |   |   | 28,052 |   |   |   | (3,503 | ) |   |   | (50 | ) |   |   | 2,511 |   |   |   | 27,010 |   |
| Net cash used in operating activities                                                                              |   |   | (17,997 | ) |   |   | (811 | ) |   |   | (231 | ) |   |   | - |   |   |   | (19,039 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                                |   |   | (13,031 | ) |   |   | (2,343 | ) |   |   | (222 | ) |   |   | - |   |   |   | (15,596 | ) |
| Proceeds from sale of assets                                                                                       |   |   | 515 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 515 |   |
| Net cash used in investing activities                                                                              |   |   | (12,516 | ) |   |   | (2,343 | ) |   |   | (222 | ) |   |   | - |   |   |   | (15,081 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from terminated revolver                                                                                  |   |   | 53,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 53,000 |   |
| Repayment of terminated revolver                                                                                   |   |   | (73,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (73,000 | ) |
| Proceeds from Revolver                                                                                             |   |   | 8,604 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,604 |   |
| Proceeds from Secured Notes, net of $7,537 discount                                                                |   |   | 124,463 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 124,463 |   |
| Repayment of term loan                                                                                             |   |   | (98,750 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (98,750 | ) |
| Repayment of capital lease obligations                                                                             |   |   | (115 | ) |   |   | (215 | ) |   |   | - |   |   |   | - |   |   |   | (330 | ) |
| Repayment of other debt                                                                                            |   |   | - |   |   |   | (15 | ) |   |   | - |   |   |   | - |   |   |   | (15 | ) |
| Debt financing costs                                                                                               |   |   | (9,903 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (9,903 | ) |
| Lessor financing of new restaurants                                                                                |   |   | 2,286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,286 |   |
| Distributions to noncontrolling interest holders                                                                   |   |   | - |   |   |   | - |   |   |   | (258 | ) |   |   | - |   |   |   | (258 | ) |
| Intercompany financing                                                                                             |   |   | (5,271 | ) |   |   | 10,001 |   |   |   | (4,730 | ) |   |   | - |   |   |   | - |   |
| Capital contributions                                                                                              |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,500 |   |
| Repurchase of equity ownership units in P&MC's Holding LLC                                                     |   |   | (277 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (277 | ) |
| Net cash provided by (used in) financing activities                                                                |   |   | 13,537 |   |   |   | 9,771 |   |   |   | (4,988 | ) |   |   | - |   |   |   | 18,320 |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                               |   |   | (16,976 | ) |   |   | 6,617 |   |   |   | (5,441 | ) |   |   | - |   |   |   | (15,800 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                                       |   |   | 19,391 |   |   |   | 428 |   |   |   | (787 | ) |   |   | - |   |   |   | 19,032 |   |
| Balance, end of period                                                                                             |   | $ | 2,415 |   |   |   | 7,045 |   |   |   | (6,228 | ) |   |   | - |   |   |   | 3,232 |   |

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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     |       |   |   | 38     |   |   |   | 127 |   |
| Marie Callender's Grill                         |   |     | -      |   |         |   | -      |       |   |   | 1      |   |   |   | 1 |   |
| Callender's Grill                               |   |     | 2      |   |         |   | -      |       |   |   | -      |   |   |   | 2 |   |
| East Side Mario's                               |   |     | 1      |   |         |   | -      |       |   |   | -      |   |   |   | 1 |   |
|        Total |   |     | 80     |   |         |   | 12     |       |   |   | 39     |   |   |   | 131 |   |

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|                        |   | Consolidated Results |    |   |            | Restaurant Operations |    |   | Franchise Operations |   |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------|-----------------------|---------|--------|----------------------|--------|--------|
|                        |   | Quarter Ended        |    |   |            | Quarter Ended         |    |   | Quarter Ended        |   |   |
|                        |   | October 4, 2009      |    |   | October 5, 2008 |                  |    |   | October 4, 2009      |   |   | October 5, 2008 |   |   | October 4, 2009 |   |   | October 5, 2008 |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 113,143 |   |            |                  | 124,507 |   |                 |   |   | 99,781 |   |   |   | 108,374 |   |   |   | - |   |   |   | - |   |   |
| Franchise and other revenue |   |                 | 6,384   |   |            |                  | 6,691   |   |                 |   |   | - |   |   |   | - |   |   |   | 5,259 |   |   |   | 5,631 |   |   |
| Intersegment revenue        |   |                 | (4,057  | )      |            |                  | (3,297  | )      |                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |
| Total revenues              |   |                 | 115,470 |   |            |                  | 127,901 |   |                 |   |   | 99,781 |   |   |   | 108,374 |   |   |   | 5,259 |   |   |   | 5,631 |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 25.7    | %      |            |                  | 29.6    | %      |                 |   |   | 24.4 | % |   |   | 26.2 | % |   |   | 0.0 | % |   |   | 0.0 | % |   |
| Labor and benefits          |   |                 | 34.2    | %      |            |                  | 32.4    | %      |                 |   |   | 37.8 | % |   |   | 36.1 | % |   |   | 0.0 | % |   |   | 0.0 | % |   |
| Operating expenses          |   |                 | 28.7    | %      |            |                  | 26.8    | %      |                 |   |   | 31.3 | % |   |   | 29.3 | % |   |   | 9.0 | % |   |   | 9.0 | % |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | (11,248 | )      |            |                  | (30,477 | )      |  (c)            |   |   | 2,252 |   |   |   | 4,639 |   |   |   | 4,786 |   |   |   | (13,411 | ) |  (c) |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | Foxtail (a)          |    |   |            | Other (b)             |    |   |                 |   |   |   |   |   |   |   |
|                        |   | Quarter Ended        |    |   |            | Quarter Ended         |    |   |                 |   |   |   |   |   |   |   |
|                        |   | October 4, 2009      |    |   | October 5, 2008 |                  |    |   | October 4, 2009      |   |   | October 5, 2008 |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 13,362  |   |            |                  | 16,133  |   |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |
| Franchise and other revenue |   |                 | -       |   |            |                  | -       |   |                 |   |   | 1,125 |   |   |   | 1,060 |   |   |   |   |   |   |   |   |   |   |
| Intersegment revenue        |   |                 | (4,057  | )      |            |                  | (3,297  | )      |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |
| Total revenues              |   |                 | 9,305   |   |            |                  | 12,836  |   |                 |   |   | 1,125 |   |   |   | 1,060 |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 57.9    | %      |            |                  | 66.7    | %      |                 |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |   |
| Labor and benefits          |   |                 | 12.5    | %      |            |                  | 14.0    | %      |                 |   |   | 6.0 | % |   |   | 7.0 | % |   |   |   |   |   |   |   |   |   |
| Operating expenses          |   |                 | 11.4    | %      |            |                  | 12.6    | %      |                 |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | 903     |   |            |                  | (2,901  | )      |  (c)            |   |   | (19,189 | ) |   |   | (18,804 | ) |   |   |   |   |   |   |   |   |   |

| (a) | In the Foxtail segment, the percentages for food cost, labor and benefits and operating expenses, as presented above, represent manufacturing costs only.  Selling, general and administrative expenses incurred in the Foxtail segment are included in the segment (loss) profit presented above, but are included in general and administrative expenses in the consolidated statements of operations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Licensing revenue of $1,081,000 and $1,006,000 for the third quarters of 2009 and 2008, 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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|  (c)  | The Company reviews the carrying amounts of goodwill at the reporting unit level. At December 30, 2007, the Company had $30,038,000 of goodwill, of which $9,836,000 was attributable to restaurant operations, $18,538,000 was attributable to franchise operations and $1,664,000 was attributable to the Foxtail segment. The goodwill originated from the acquisition of the Company by affiliates of Castle Harlan, Inc.in September 2005. Due to the decrease in the Company’s operating results during 2008 and the decline in general economic conditions impacting the restaurant industry, management conducted an interim goodwill impairment evaluation during the quarter ended October 5, 2008. Fair values of the reporting units were calculated using discounted future cash flows and market-based comparative values.  Because the carrying values of the reporting units in both the franchise and Foxtail segmentsexceeded their respective fair values, the Company completed step two of the goodwill test and concluded that goodwill was impaired as of October 5, 2008. Accordingly, in the quarter ended October 5, 2008, the Company recorded a non-cash goodwill impairment charge of $20,202,000, of which $18,538,000 was charged to the franchise segment and $1,664,000 was charged to the Foxtail segment. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | Percentage of Total Revenues |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | Quarter                      |   |   | Quarter |   |
|                  |   | Ended                        |   |   | Ended |   |
|                  |   | October 4, 2009              |   |   | October 5, 2008 |   |
|                  |   |                         |   |   |   |   |
| Restaurant operations |   |                         | 86.4   | % |   |   | 84.8 | % |
| Franchise operations  |   |                         | 4.6    | % |   |   | 4.4 | % |
| Foxtail               |   |                         | 8.1    | % |   |   | 10.0 | % |
| Other                 |   |                         | 0.9    | % |   |   | 0.8 | % |
| Total revenues        |   |                         | 100.0  | % |   |   | 100.0 | % |

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|                        |   | Consolidated Results |    |   |            | Restaurant Operations |    |   | Franchise Operations |   |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------|-----------------------|---------|--------|----------------------|--------|--------|
|                        |   | Year-to-Date Ended   |    |   |            | Year-to-Date Ended    |    |   | Year-to-Date Ended   |   |   |
|                        |   | October 4, 2009      |    |   | October 5, 2008 |                  |    |   | October 4, 2009      |   |   | October 5, 2008 |   |   | October 4, 2009 |   |   | October 5, 2008 |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 399,369 |   |            |                  | 431,360 |   |                 |   |   | 355,501 |   |   |   | 381,761 |   |   |   | - |   |   |   | - |   |   |
| Franchise and other revenue |   |                 | 21,575  |   |            |                  | 22,635  |   |                 |   |   | - |   |   |   | - |   |   |   | 17,507 |   |   |   | 18,800 |   |   |
| Intersegment revenue        |   |                 | (14,345 | )      |            |                  | (12,728 | )      |                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |
| Total revenues              |   |                 | 406,599 |   |            |                  | 441,267 |   |                 |   |   | 355,501 |   |   |   | 381,761 |   |   |   | 17,507 |   |   |   | 18,800 |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 26.3    | %      |            |                  | 29.5    | %      |                 |   |   | 25.3 | % |   |   | 26.9 | % |   |   | 0.0 | % |   |   | 0.0 | % |   |
| Labor and benefits          |   |                 | 33.4    | %      |            |                  | 32.7    | %      |                 |   |   | 36.5 | % |   |   | 35.9 | % |   |   | 0.0 | % |   |   | 0.0 | % |   |
| Operating expenses          |   |                 | 27.3    | %      |            |                  | 26.1    | %      |                 |   |   | 29.5 | % |   |   | 28.4 | % |   |   | 8.3 | % |   |   | 8.5 | % |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | (26,882 | )      |            |                  | (46,130 | )      |  (c)            |   |   | 16,664 |   |   |   | 18,244 |   |   |   | 16,055 |   |   |   | (1,327 | ) |  (c) |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | Foxtail (a)          |    |   |            | Other (b)             |    |   |                 |   |   |   |   |   |   |   |
|                        |   | Year-to-Date Ended   |    |   |            | Year-to-Date Ended    |    |   |                 |   |   |   |   |   |   |   |
|                        |   | October 4, 2009      |    |   | October 5, 2008 |                  |    |   | October 4, 2009      |   |   | October 5, 2008 |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food sales                  |   | $                    | 43,868  |   |            |                  | 49,599  |   |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |
| Franchise and other revenue |   |                 | -       |   |            |                  | -       |   |                 |   |   | 4,068 |   |   |   | 3,835 |   |   |   |   |   |   |   |   |   |   |
| Intersegment revenue        |   |                 | (14,345 | )      |            |                  | (12,728 | )      |                 |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |
| Total revenues              |   |                 | 29,523  |   |            |                  | 36,871  |   |                 |   |   | 4,068 |   |   |   | 3,835 |   |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food cost                   |   |                 | 58.5    | %      |            |                  | 67.3    | %      |                 |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |   |
| Labor and benefits          |   |                 | 13.1    | %      |            |                  | 13.4    | %      |                 |   |   | 5.9 | % |   |   | 6.7 | % |   |   |   |   |   |   |   |   |   |
| Operating expenses          |   |                 | 10.4    | %      |            |                  | 11.0    | %      |                 |   |   | 0.0 | % |   |   | 0.0 | % |   |   |   |   |   |   |   |   |   |
|                        |   |                 |    |   |            |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment (loss) profit       |   | $                    | 2,226   |   |            |                  | (4,786  | )      |  (c)            |   |   | (61,827 | ) |   |   | (58,261 | ) |   |   |   |   |   |   |   |   |   |

| (a) | In the Foxtail segment, the percentages for food cost, labor and benefits and operating expenses, as presented above, represent manufacturing costs only.  Selling, general and administrative expenses incurred in the Foxtail segment are included in the segment (loss) profit presented above, but are included in general and administrative expenses in the consolidated statements of operations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Licensing revenue of $3,889,000 and $3,626,000 for the year-to-date periods of 2009 and 2008, 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)  | As discussed above, due to the decrease in the Company’s operating results during 2008 and the decline in general economic conditions impacting the restaurant industry, management conducted an interim goodwill impairment evaluation during the quarter ended October 5, 2008. Fair values of the reporting units were calculated using discounted future cash flows and market-based comparative values.  Becausethe carrying values of the reporting units in both the franchise and Foxtail segments exceeded their respective fair values, the Company completed step two of the goodwill test and concluded that goodwill was impaired as of October 5, 2008. Accordingly, in the fiscal quarter ended October 5, 2008, the Company recorded a non-cash goodwill impairment charge of $20,202,000, of which $18,538,000 was charged to the franchise segment and $1,664,000 was charged to the Foxtail segment. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  |   | Percentage of Total Revenues |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | Year-to-Date                 |   |   | Year-to-Date |   |
|                  |   | Ended                        |   |   | Ended |   |
|                  |   | October 4, 2009              |   |   | October 5, 2008 |   |
|                  |   |                         |   |   |   |   |
| Restaurant operations |   |                         | 87.4   | % |   |   | 86.5 | % |
| Franchise operations  |   |                         | 4.3    | % |   |   | 4.3 | % |
| Foxtail               |   |                         | 7.3    | % |   |   | 8.3 | % |
| Other                 |   |                         | 1.0    | % |   |   | 0.9 | % |
| Total revenues        |   |                         | 100.0  | % |   |   | 100.0 | % |

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|                                   |   | Year-to-DateEndedOctober 4, 2009 |   |   | Year-to-DateEndedOctober 5, 2008 |   |
|---------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| Cash flows used in operating activities     |   | $                                | (4,837 | )      |                             |   | (19,039 | ) |
| Cash flows used in investing activities     |   |                             | (5,447 | )      |                             |   | (15,081 | ) |
| Cash flows provided by financing activities |   |                             | 9,196  |   |                             |   | 18,320 |   |

|                      |   | Year-to-DateEndedOctober 4, 2009 |   |   | Year-to-DateEndedOctober 5, 2008 |   |
|-------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| New restaurants                     |   | $                                | 156    |   |                             |   | 2,208 |   |
| Restaurant improvements             |   |                             | 3,559  |   |                             |   | 5,455 |   |
| Restaurant remodeling and reimaging |   |                             | 1,227  |   |                             |   | 2,556 |   |
| Manufacturing plant improvements    |   |                             | 560    |   |                             |   | 4,237 |   |
| Other                               |   |                             | 439    |   |                             |   | 1,140 |   |
| Total capital expenditures          |   | $                                | 5,941  |   |                             |   | 15,596 |   |

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|   | • | the current U.S. economic recession, consumer preferences and demographic patterns, either nationally or in particular regions in which we operate; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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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. Submission of Matters to a Vote of Security Holders

ITEM 5. Other Information

ITEM 6. Exhibits

| 31.1 | Chief Executive Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 302. |
|------|--------------------------------------------------------------------------------------------|
| 31.2 | Chief Financial Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 302. |
| 32.1 | Chief Executive Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 906. |
| 32.2 | Chief Financial Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 906. |

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SIGNATURE

|                    | PERKINS & MARIE CALLENDER’S INC. |
|-------------------------|--------------------------------------------|
|                    |                                       |
| DATE: November 17, 2009 | BY: /s/ Fred T. Grant, Jr.                 |   |
|                    | Fred T. Grant, Jr.                         |
|                    | Chief Financial Officer                    |

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