California Pizza Kitchen released limited information about first quarter earnings, which were down 2.7 percent compared with the same period for 2009. The cofounders also confirmed their staying on with the company amid speculation about an impending sale.
Comparable full service restaurant sales decreased approximately 2.7 percent compared to a 5.9 percent decrease in the first quarter a year ago. Management estimated that the Easter shift and adverse weather conditions during the quarter negatively affected comparable sales by approximately 1.3 percent.
Revenues decreased 2.7 percent to $156.7 million for the first quarter ended April 4, 2010, vs. $161.1 million in the first quarter of 2009.
The company also announced that co-chief executive officers Rick Rosenfield and Larry Flax, along with chief operating officer and chief financial officer Sue Collyns, have each extended their employment agreement with the company for an additional three years through December 2012.
In a separate release, the company confirmed reports from late last week about a possible sale, announcing that its board of directors has authorized management to consider a wide range of financial and strategic alternatives to enhance shareholder value. The company has engaged Moelis & Co., a global investment bank, to be its exclusive financial advisor in this review.
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