CPK Posts Strong Q4 Earnings

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Shares in California Pizza Kitchen Inc. gained nearly 4 percent in early trading Friday after the company reported solid fourth quarter earnings boosted by strong same-store sales.


Net income rose 30 percent to $4.8 million (17 cents per share), falling in line with Wall Street’s expectations, according to Thomson Financial.


Sales for the Los Angeles-based casual dinning chain also rose 12 percent to $163 million also in line with analysts’ predictions.


Same-store sales at the company’s namesake restaurants rose 1.8 percent during the quarter. Growth in same store sales is crucial for restaurant chains because nearly every chain in the casual dining sector has struggled to maintain sales amid rising commodity costs and slowing consumer spending.


For the year, earnings fell 23 percent to $16.2 million (55 cents per share), while sales rose 14 percent to $633 million.

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