California Pizza Kitchen has announced 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.
Financial and strategic alternatives may include, but are not limited to, changes in the company's capital structure, or a possible sale, merger or other business combination. There can be no assurance that this review will result in any action, and the company does not expect to make further comment unless its board of directors has approved a specific course of action.
According to The Wall Street Journal, CPK has been soliciting interest from private equity and other sources. The news drove the stock up to a three-year-high of $24 on Sunday.
There are 253 California Pizza Kitchen locations systemwide, including 205 company-owned domestic stores. The company also has a licensing agreement with Nestle S.A., which manufactures and distributes a line of California Pizza Kitchen premium frozen products. The company's average guest check was approximately $15 in 2009.
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