CPK’s Profit Falls as Costs Offset Higher Sales
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Dining chain California Pizza Kitchen Inc. on Monday posted a slight decline in second-quarter profit as cost growth kept pace with rising sales.
For the quarter ended July 2, earnings fell to $6 million, or 30 cents a share, from $6.2 million, or 32 cents, in the year-earlier period. Operating income rose to $8.7 million from $7.8 million.
Sales increased 14% to $136.2 million from $119.4 million in the year-earlier quarter. Expenses rose 14% to $108.6 million.
In a Thomson Financial poll, analysts forecast profit of 29 cents a share on sales of $136 million.
The Westchester-based chain said average weekly sales at California Pizza Kitchen restaurants rose about 5% to $65,427 from the 2005 quarter. Sales at stores open at least 18 months, which California Pizza Kitchen defines as comparable restaurant sales, rose 4.8% in the second quarter.
California Pizza Kitchen projects comparable-restaurant sales growth of 4% to 5% in the third quarter and per-share earnings of 32 cents to 33 cents.
The company’s shares rose 11 cents to $26.20. In aftermarket activity, they rose 80 cents to $27.
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