CPK profit up, but warning issued
California Pizza Kitchen Inc. reported a 5% rise in second-quarter earnings but warned that results for the rest of the year would fall short of expectations because of cheese costs and weaker sales at older restaurants. The Los Angeles company’s shares fell 9% after hours.
CPK also said it would take a big charge in the current quarter for closing four restaurants.
Second-quarter profit rose to $6.3 million, or 21 cents a share, from $6 million, or 20 cents, a year earlier. Sales rose 16.4% to $158.6 million. Analysts had expected revenue of $159.03 million.
Earnings for the quarter included 2 cents a share of costs for stopping construction on a CPK/ASAP restaurant.
Excluding that charge, results were in line with a forecast CPK gave last month and Wall Street analysts’ average estimate of 23 cents a share, according to Reuters Estimates.
Shares fell to $18.25 after hours, after closing at $20.05.