California Pizza Kitchen Sees Profit Decline

0

California Pizza Kitchen Inc. on Thursday reported only slightly lower second quarter earnings, as the casual dining chain continued to cut costs in addition to launching promotions aimed at recession-weary customers.

After Thursday’s market close, the Los Angeles company reported net income of $6.1 million (25 cents per share), compared with $6.6 million (26 cents) a year ago.

Sales fell 3 percent to less than $171 million. Same-store sales at company-owned restaurants fell 6.5 percent from a year ago.

Analysts surveyed by Thomson Reuters on average expected earnings of 25 cents per share on revenue of just under $172 million. But the company gave guidance for the current quarter that was lower than Wall Street expected.

For the third quarter, the company expects sales at company-owned restaurants to drop 6.5 percent to 7.5 percent with earnings per share of 19 cents to 21 cents. Analysts are expecting 23 cents per share.

“Our second quarter results reflect the success we’ve had managing costs and driving operating efficiencies,” said co-Chief Executives Rick Rosenfield and Larry Flax in a statement. “We remain cautiously optimistic given the economic uncertainty, but look forward to the next few quarters, where comparable restaurant sales ease.”

During the quarter the company opened three full-service restaurants, including one in Valencia, and a franchise partner opened a restaurant in Guadalajara, Mexico.

Shares closed down 24 cents, or 1.5 percent, to $15.90 on the Nasdaq, but gained 1.5 percent in after-market trading.

No posts to display