California Pizza Kitchen, Inc. (Nasdaq:CPKI) today reported revenues and net income for the third quarter ended September 30, 2007. Highlights for the third quarter of 2007 relative to the same quarter a year ago were as follows:
• Total revenues grew approximately 13.5% to $162.0 million
• Comparable restaurant sales increased 3.5%
• Net income of $1.4 million, or $0.05 per diluted share, including a $0.20 per diluted share charge primarily associated with store closure costs for four CPK/ASAPs
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, "We are pleased to have exceeded our sales and earnings estimates given the challenging sales and cost environment in casual dining. We credit our menu and strong operational focus on inventory and labor management which enabled us to achieve 20% restaurant level margins despite rising cheese costs and minimum wage pressures. In addition, we are pleased to have leveraged our general and administrative costs by 60 basis points year over year. These quarterly operating results are a testament to how our great food, notable customer service and brand equity sustain us in challenging times.'
Average weekly sales for the Company's 176 full service restaurants increased 3.0% to $68,972 for the third quarter of 2007 compared to $66,971 for the same quarter last year.
In the third quarter of 2007, the Company added six full service restaurants in Roseville, Minnesota, Tempe, Arizona, Lake Grove, New York, Nashville, Tennessee, Seal Beach, California, and Houston, Texas. The Company's domestic franchise partner, HMSHost, opened a CPK/ASAP location in Los Angeles International Airport, while an international franchise partner, Grupo Calpik, S.A. de C.V. of Mexico, opened a full service restaurant in Mexico City.
For the fourth quarter of 2007, the Company intends to add seven full service and two international franchise restaurants. These openings, together with a comparable restaurant sales increase of 2.0%-3.0%, are expected to result in earnings of $0.22-$0.23 per diluted share.
The Company also announced guidance for fiscal 2008 based on the following assumptions:
• Restaurant revenue growth of approximately 14.0% to 15.0%
• Eighteen month comparable restaurant sales growth of approximately 2.0% to 3.0%
• Approximately 17 new full service restaurants for 2008
• A minimum of six international full service franchise restaurants for 2008
• A minimum of four domestic CPK/ASAP franchise restaurants for 2008
• One new LA Food Show restaurant
• Earnings per diluted share of $0.85-$0.92
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