California Pizza Kitchen Boosts Outlook

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California Pizza Kitchen Inc. raised its first-quarter earnings forecast Wednesday, citing higher profit margins due to cost-cutting measures.

The Los Angeles restaurant chain said first quarter revenue fell 2.2 percent to $161 million compared with a year ago. Same-store restaurant sales were down approximately 6 percent, compared to a 0.4 percent increase a year ago.

The company forecast net income of 9 cents to 10 cents per share. In February, the company projected first quarter net income of 3 cents to 5 cents per share and a same-store restaurant sales decrease of -5.5 percent to -6.5 percent.

Analysts surveyed by Thomson Reuters on average expected net income of 5 cents per share on revenue of $162 million.

Co-Chief Executives Rick Rosenfield and Larry Flax cited the company’s culture, menu innovation and customer service as helping to maintain sales during the recession. “These core drivers, combined with our rapid implementation of cost-saving initiatives, bolstered our first quarter results which exceeded expectations,” they said.

The company plans to release first quarter earnings May 7.

California Pizza Kitchen shares closed up 14 cents, or 1 percent, to $14.80 in regular trading on the Nasdaq, and jumped another 8 percent in after-market trading following the earnings announcement.

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