News

Q1 comps jump 9.3% at California Pizza Kitchen

April 28, 2005

LOS ANGELES — It appears California Pizza Kitchen's recessionary and real estate woes are behind it. The 176-unit, pizza-centered casual dining chain reported a 9.3 percent rise in comparable-store sales for the first quarter of 2004.

According to a regulatory filing, revenue for the period ended April 3 rose 11.9 percent to $110.3 million versus $98.6 million in the comparable period. Net income was $4.3 million, versus $4.2 million in the same period in 2003. The strong results led CPK to increase its earnings estimate for the period from 18 cents to 19 cents per share, to 21 cents to 22 cents per share.

The filing also said co-founders and co-chief executives, Rick Rosenfield and Larry Flax, entered into a 5-year employment agreement with the company. The two have overseen day-to-day operations since returning to managerial roles in July 2003, but they had no formal employment agreement with CPK.

Flax and Rosenfield took the role of co-CEOs after CEO Fred Hipp stepped down in July 2003. Hipp shouldered much of the blame for CPK's failed expansion strategy, implemented during his tenure.