CPK Shares Plummet on Tepid Outlook

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Shares in California Pizza Kitchen Inc. sank more than 20 percent in after-hours trading Tuesday after the casual dining chain lowered its fourth-quarter guidance and fiscal 2008 earnings.


The Los Angeles-based restaurant chain cited lower-than-expected same-store sales. The company said it expects earnings between 16 cents and 18 cents per share, well off its November estimate of 22 cents to 23 cents.


California Pizza Kitchen said it now expects revenue to climb about 12 percent to $163 million and it expects same-store sales to climb about 1.8 percent for the quarter, less than the 2 percent to 3 percent growth the company predicted in November.


The chain now expects 2008 fiscal earnings of between 54 cents and 60 cents per share, with a 1 percent decline in same-store sales. The company had said it expected annual earnings of between 85 cents and 92 cents based on same-store sales growth between 2 percent and 3 percent. Analysts had predicted earnings of 89 cents per share for the year.


Shares in California Pizza Kitchen closed down 4.1 percent in regular trading, hitting a 52-week low of $12.80. Shares plummeted another 20 percent in after-hours trading to $9.80 after the announcement.

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