Shares in CPK Surge on Outlook

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Shares in California Pizza Kitchen Inc. soared nearly 10 percent Friday after the company reported a boost in same-store sales along with a sunny forecast for its second quarter.


CPK reported first quarter net income of $3.6 million (18 cents per share), a 22 percent decline from $4.6 million (23 cents) for the same period a year earlier. The restaurant chain cited an 18 percent increase in labor charges as well as a 13 percent hike in food costs for the lowered earnings, which were in line with Wall Street’s forecasts.


Revenue for the Los Angeles-based gourmet pizza chain grew 15 percent to $149 million also in line with analysts’ expectations.


The company said its same-store sales rose 4.7 percent in the quarter, and expects second-quarter earnings to rise 13 to 20 percent on continuing same-store sales growth to 34 and 36 cents per share.


Shares in CPK rose $3.22, or 9.4 percent, to $37.47 in afternoon trading on the Nasdaq Friday.

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