Revenue, Same-Store Sales Down at California Pizza Kitchen
California Pizza Kitchen, Inc. today reported revenues and net income for the third quarter ended September 27, 2009.
-- Chain Leader, 11/6/2009 8:15:00 AM
PRESS RELEASE: LOS ANGELES--(BUSINESS WIRE)--California Pizza Kitchen, Inc. (Nasdaq: CPKI) today reported revenues and net income for the third quarter ended September 27, 2009.
Highlights for the third quarter of 2009 relative to the same quarter a year ago were as follows:
* Total revenues decreased 5.3% to $164.8 million
* Full service comparable restaurant sales decreased 8.0%
* Net income increased 16.8% to $5.8 million
* Earnings per diluted share increased 20% to $0.24
* Outstanding debt of $37.0 million, a $13.0 million reduction from the second quarter of 2009
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, "Our ability to drive bottom-line results in the current environment was largely due to the sustainable operating efficiencies we realized throughout 2009. To complement this success, we have launched several revenue and traffic building initiatives in the fourth quarter in addition to yesterday's new menu introduction. These initiatives include our sales productivity report, take-out call center, catering program and an expanded wine program. These efforts are in line with our strategy which we believe will enhance our brand equity, maximize financial performance and build shareholder value over the long run."
Average weekly sales for the Company's 198 full service restaurants were $60,945 in the third quarter of 2009 compared to $66,718 for the same quarter last year.
During the third quarter of 2009, the Company added one full service restaurant in Cherry Hill, New Jersey. In addition, one of the Company's franchise partners launched the first California Pizza Kitchen on a college campus, opening a fast-casual location at Hofstra University in Hempstead, New York.
The Company also outlined its financial guidance for the fourth quarter of 2009 based on the following assumptions:
* Comparable restaurant sales between negative 5.5% and negative 6.5%
* Opening one international full service franchise restaurant
* Earnings estimated in the range of $0.16-$0.18 per diluted share
In 2010, the Company anticipates opening eight full service restaurants, while franchise partners are expected to open eight international and two domestic franchise locations.
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.
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 $14.30. As of November 5, 2009 the Company operates, licenses or franchises 256 locations, of which 208 are company-owned and 48 operate under franchise or license agreements. The Company also has a licensing agreement with Kraft Pizza Company which manufactures and distributes a variety of California Pizza Kitchen premium frozen products.
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," "guidance" 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 deteriorating economic conditions, revenue from third party licensees and franchisees, changing consumer preferences and demands, the continued availability of qualified employees and our management team, the maintenance of reasonable food and supply costs, our exposure to the California market 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.
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