LOS ANGELES–(BUSINESS WIRE)–California Pizza Kitchen, Inc. (Nasdaq: CPKI) today reported revenues and net income for the first quarter ended April 1, 2007. Highlights for the first quarter of 2007 relative to the same quarter a year ago were as follows:
- Total revenues grew 15.2% to $149.4 million
- Comparable restaurant sales increased 4.7%
- Net income of $3.6 million, or $0.18 per diluted share, including the effect of $0.02 per diluted share of incremental compensation expense related to accelerated restricted stock vesting
- Net income of $4.0 million, or $0.20 per diluted share, excluding the effect of $0.02 per diluted share of incremental compensation expense related to accelerated restricted stock vesting
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, “During the first quarter, we delivered one of the strongest comparable restaurant sales and traffic count increases in our sector despite a mixed economy and unfavorable weather patterns across many parts of the country. We consider this a testament to our creative offerings across the entire menu, our exceptional service and the lifestyle component of the CPK brand.”
Average weekly sales for the Company’s 168 full service restaurants increased 4.1% to $65,904 for the first quarter of 2007 compared to $63,293 for the same quarter last year.
In the first quarter of 2007, the Company added two new full service restaurants in Austin, Texas and San Francisco, California as well as two CPK/ASAP restaurants in Anaheim, California and Kailua, Hawaii. The Company’s franchise partner WDI Corporation also opened its second full service restaurant in Japan.
Rosenfield and Flax continued, “We are fortunate to have numerous levers at our disposal to increase stockholder value including restaurant development, domestic and international franchising and our licensing agreement with Kraft. New full service restaurant openings will continue to be our focus in 2007, although the growth of Kraft’s CPK-branded business is becoming a larger component of our financial model. Together with international franchising, we are uniquely positioned in the global marketplace to leverage our brand.”
For the second quarter of 2007, the Company has added one full service restaurant and one domestic franchise and expects to add another full service restaurant and one international franchise location. These openings, together with a comparable restaurant sales increase of 5.0%-6.0%, are expected to result in second quarter earnings per diluted share of $0.34-$0.36.
California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain. The 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 $13.23. As of May 10, 2007 the Company operates, licenses or franchises 212 restaurants, of which 181 are company-owned and 31 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.
California Pizza Kitchen, Inc. can be found on the internet at www.cpk.com.
This release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include projections of earnings, revenue or other financial items, statements of the plans, strategies and objectives of management for future operations, statements concerning proposed new products or developments, statements regarding future economic conditions or performance, statements of belief and statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “anticipate” and similar words.
Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Our actual results may and will likely differ materially from the expectations referred to herein. Among the key factors that may have a direct bearing on our operating results, performance and financial condition are changing consumer preferences and demands, the execution of our expansion strategy, the continued availability of qualified employees and our management team, the maintenance of reasonable food and supply costs, our relationships with our distributors and numerous other matters discussed in the Company’s filings with the Securities and Exchange Commission. California Pizza Kitchen undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.