UPDATE 3-P.F. Chang's 1st-qtr profit beats view

(Recasts; adds analyst comment and details about results and planned Taneko sale, byline; changes dateline from previous NEW YORK)

By Lisa Baertlein

LOS ANGELES, April 23 (Reuters) - P.F. Chang's China Bistro Inc (PFCB.O: Quote, Profile, Research, Stock Buzz) posted better-than-expected quarterly profits on Wednesday and raised its 2008 forecast, but said a weak economy and high costs will continue to weigh on its business.

First-quarter net income in the Asian-themed restaurant chain fell to $9.6 million, or 40 cents per share, from $10.5 million, or 40 cents per share, a year earlier.

Consolidated revenue rose 17 percent to $308.6 million from $263.7 million as menu price increases helped top internal targets.

Analysts, on average, looked for earnings of 31 cents a share on revenue of $304.7 million, according to Reuters Estimates.

Sales at P.F. Chang's China Bistro outlets open at least 18 months rose 0.1 percent, while same-store sales at Pei Wei Asian Diner, the company's newer quick-serve chain, fell 2.4 percent.

The Scottsdale, Arizona-based company raised its full-year earnings forecast to a range of $1.34 to $1.40 a share from $1.32 to $1.38.

Analysts expected $1.33 a share in 2008, according to Reuters Estimates.