California Pizza Kitchen Slumps on Note
Tuesday April 8, 5:48 pm ET
California Pizza Kitchen Sinks As Analyst Predicts Sales Growth Slowed During 1st Quarter
NEW YORK (AP) -- Shares of California Pizza Kitchen Inc. slid Tuesday after an analyst said she expects sales at the casual dining chain worsened as the quarter progressed.
Same-store sales, or sales in stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
In a research note, Lynne Collier of KeyBanc Capital Markets said California Pizza Kitchen, like its peers in the casual dining industry, faces continued challenges in states affected by the housing market downturn. Overall, the Los Angeles-based chain owns and franchises more than 200 restaurants worldwide.
"We believe that California Pizza Kitchen's same-store sales have remained strong in states such as Texas, Illinois and Colorado," she wrote. "However, we anticipate that the negative impact from the company's significant exposure to California and Florida (representing 45.5 percent of the store base) will skew same-store sales into negative territory."
The company in mid-February predicted its same-store sales would be flat to down 1 percent for the entire fiscal year.
Collier expects California Pizza Kitchen to post a 1 percent decline in first-quarter same-store sales with a profit of 5 cents per share and total revenue of $162.1 million. Analysts surveyed by Thomson Financial forecast, on average, earnings per share of 5 cents and revenue of $163.9 million.
The analyst maintained her "Hold" rating on the stock, adding that she expects same-store sales to turn positive in the second half of the year.
Shares of California Pizza Kitchen fell 65 cents, or 4.4 percent, to close at $14.28 Tuesday.
