California Pizza Earnings Beat Expectations

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Despite a drop in same-stores sales, California Pizza Kitchen Inc. released better-than-expected earnings in the first quarter, citing lower cheese prices and in-house cost controls.

After Thursday’s market close, the Los Angeles restaurant chain reported net income of $2.6 million (11 cents per share), compared with $2.5 million (9 cents) a year ago. Revenue fell 2 percent to $161 million. Sales at company-owned restaurants open at least 18 months were down 5.9 percent.

Analysts surveyed by Thomson Reuters on average expected the company to earn 10 cents per share on revenue of more than $161 million. The company had only expected per share profit of 9 cents.

“Our management team responded quickly to market conditions and we were able to drive profitability through rapid implementation of cost savings and efficiency measures,” said Co-Chief Executives Rick Rosenfield and Larry Flax in a statement.

In the current quarter, the company, which has 250 restaurants around the world, said it expects earnings in the range of 18 to 20 cents per share. Analysts expect the company to earn 20 cents on average.

California Pizza Kitchen shares closed up 30 cents, 2 percent, to $15.11 Friday on the Nasdaq.

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