CPK net income increases 20%

California Pizza Kitchen Inc. said Thursday that its third-quarter net income grew 20% as same-store sales increased, but the Westchester-based restaurant operator lowered its fourth-quarter guidance and its shares fell in after-hours trading.

Net income for the quarter ended Oct. 1 totaled $6.7 million, or 34 cents a share, compared with $5.5 million, or 28 cents, a year earlier. Revenue rose 14% to $142.8 million.

Analysts polled by Thomson Financial expected a profit of 33 cents on revenue of $142.7 million.

Sales in stores open at least a year, a key measure of industry performance, grew 5.6%.

The company lowered fourth-quarter earnings guidance to 13 cents to 15 cents, from a previous outlook of 25 cents to 27 cents, because of a 6-cent charge for delays in new restaurant opening dates, and a 3-cent charge from concluding negotiations to secure early lease termination and close its last money-losing restaurants.

Fourth-quarter results also will be hurt by a penny by accelerated depreciation on three restaurants California Pizza Kitchen plans to remodel in 2007 and a non-cash charge of 2 cents a share for rent expense associated with restaurants that will open in 2007.

In the fourth quarter, the company plans to add nine full-service restaurants and two ASAP stores, its faster, limited-option chain.

Analysts expect a profit of 28 cents for the quarter.

In fiscal 2007, California Pizza Kitchen expects earnings of $1.31 to $1.33 a share, while analysts are looking for net income of $1.38 a share.

Shares fell $3.08, or 9.8%, to $28.50 during after-hours trading. The stock closed down 95 cents, or 2.9%, at $31.58.