LOS ANGELES–(BUSINESS WIRE)–California Pizza Kitchen, Inc. (Nasdaq:CPKI) today reported revenues and net income for the second quarter ended June 29, 2008.
Highlights for the second quarter of 2008 relative to the same quarter a year ago were as follows:
- Total revenues grew approximately 11.3% to $176.6 million
- Comparable restaurant sales increased 1.4%
- Net income of $6.6 million, or $0.26 per diluted share
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, “We are very pleased with our second quarter performance which was driven by the success of our Thank You Card Program, continued growth from ancillary revenue streams, and efficiencies gained through operational discipline and expense controls. Going forward we remain focused on menu innovation, superior guest service, and a disciplined approach to new full service restaurant growth. Additionally, we continue to develop our successful relationship with Kraft and are pursuing new opportunities with international and domestic franchising partners in key markets.”
Rosenfield and Flax concluded, “Despite a challenging economic environment we are very pleased to increase our earnings per share estimates for the full year. We are able to do this as a result of our strong second quarter performance, better than anticipated year to date comparable restaurant sales of 1.0% and the successful completion of our $50.0 million share repurchase program. However, we remain cautious regarding continued economic weakness and as such, maintain our full year comparable restaurant sales estimate of negative 1% to 0%.”
Average weekly sales for the Company’s 190 full service restaurants were $68,708 in the second quarter of 2008 compared to $68,535 for the same quarter last year.
During the second quarter, the Company added three full service restaurants in Plymouth Meeting, Pennsylvania; Portland, Oregon and Chino Hills, California. In addition, the Company’s international franchise partners WDI Corporation, Iris Co. Ltd. and Grupo Calpik, S.A. de C.V each added one full service restaurant in Tokyo, Japan; Seoul, Korea and Mexico City, Mexico, respectively.
The Company also raised its full-year earnings guidance based on the following assumptions:
- Earnings per diluted share of $0.65-$0.70 compared to $0.59-$0.65 estimated on May 8, 2008
- Comparable restaurant sales of negative 1% to 0%
- Opening 12 full service restaurants
- Opening nine international full service franchise restaurants
- Opening two domestic CPK/ASAP franchise restaurants
- Opening one LA Food Show restaurant
The Company will host a conference call today at approximately 4:30 pm ET. A webcast of the conference call can be accessed at www.cpk.com.
Company’s full service restaurants feature an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, soups, appetizers and sandwiches. The average guest check is approximately $13.95. As of August 7, 2008 the company operates, licenses or franchises 244 locations, of which 201 are company-owned and 43 operate under franchise or license agreements. The Company also has a licensing agreement with Kraft Pizza Company which manufactures and distributes a line of California Pizza Kitchen premium frozen pizzas.
Information about California Pizza Kitchen, Inc. can be found on the Company’s website at www.cpk.com.
