CPK Hit Again on Analyst’s Comments

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The stock of casual dining chain operator California Pizza Kitchen Inc. lost 3 percent in early trading Thursday after a Friedman Billings Ramsey analyst said its 2008 forecast may be too aggressive because sales in key markets are getting worse. The stock dropped 5 percent the day before.


Analyst Howard Penney downgraded the stock a day after Wedbush Morgan Securities cut its rating of the Los Angeles-based company.


Penney said in a research report that restaurant sales are slumping in California, where the gourmet pizza chain does 40 percent of its business. A slide in same-store sales is hurting the company, he said.


Penney trimmed his 2008 profit estimate to 60 cents per share. In February, CPK forecast a profit of 56 cents to 62 cents per share for the year.


Shares in CPK were off 3.1 percent to $13.07 in early trading Thursday. Shares have slid more than 16 percent so far this year.

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