California Pizza Kitchen Raises Profits in Q2

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California Pizza Kitchen Inc. after Thursday’s market close said that cost controls had enabled it to report improved second-quarter net income that met Wall Street expectations.

The Los Angeles-based restaurant operator said net income was $6.6 million, or 26 cents per share, up 5 percent from a year ago. Net income matched the average of analysts surveyed by Reuters Estimates. Total revenue rose 11 percent to $177 million, helped by menu promotions.

California Pizza also raised its full-year earnings forecast, but warned that same-store sales likely would be flat or slightly down for the entire year. Sales at company-owned stores open at least 18 months were up 1.4 percent in the second quarter.

The company’s updated 2008 profit forecast calls for earnings of 65 cents to 70 cents per share, versus its previous call for earnings of 59 to 65 cents. Reuters Estimates said analysts were expecting 65 cents to 78 cents per share.

Before the earnings report, California Pizza Kitchen shares fell 39 cents, or 3 percent, to $14.01 on Nasdaq and were down 1 cent in after-hours trading.

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