News
CPK swings to loss in Q4
February 12, 2009
LOS ANGELES -- Comparable-store sales at California Pizza Kitchen restaurants decreased 7.2 percent for the fourth quarter ended Dec. 28, the company has announced. For the year, comparable-store sales were off 2 percent.
Revenues for the quarter were $161.8 million, off 0.7 percent compared with revenues of $162.9 million in the fourth quarter of 2007. Revenues for the year were $677.1 million, up 7 percent compared with revenues of $632.9 million for 2007.
The company lost $5.3 million in the fourth quarter, compared with net income of $3.5 million in the 2007 fourth quarter. For the year, net income was $8.7 million, off 41 percent compared with net income of $14.8 million for 2007.
"We are managing our business during unprecedented economic times and are confident of CPK's strong market position and strategy," said Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen Inc. "Our price point is well placed within the casual dining segment and our innovative menu and attentive service levels continue to deliver high guest satisfaction scores. The combination of price, value, service and operating efficiency will be the centerpiece of protecting our four-wall margins in 2009."
CPK intends to limit company-owned restaurant expansion to five new locations in 2009, Rosenfield and Flax said, although the company plans to open 10 franchise units. CPK also plans to launch a new non-pizza grocery product, "CPK Flatbread Melts," in March to complement its line of frozen pizzas.
Projections for the first quarter of 2009 include:
- Comparable restaurant sales to decline approximately 5.5 percent to 6.5 percent
- Opening one full-service restaurant
- Opening two international full-service franchise restaurants
- Earnings of 3-5 cents per diluted share
Related Media
Subscribe
Get the latest news and resources from Pizza Marketplace.
