California Pizza Kitchen, Inc. has reported financial results for the first quarter ending April 3, 2011.
Highlights for the first quarter of 2011 were as follows:
- Total revenues decreased 0.5% from prior year to $156.0 million.
- Full-service comparable restaurant sales decreased 2.1%.
- Supplemental gift card revenue of $0.7 million compared to $1.4 million in the prior year.
- Net income of $2.1 million, or $0.09 per diluted share.
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, stated, “We were pleased that first quarter earnings exceeded our previously estimated range and credit effective cost management at both the restaurant and corporate level for achieving these results. In mid-February, we launched our menu optimization program which reduced hourly labor cost relative to the prior year and shifted our sales mix to higher margin items. We attained these productivity and margin gains without sacrificing the guest experience and look forward to realizing the full impact of this initiative throughout the year.”
Rosenfield and Flax continued, “In 2011, we are focusing on several key areas that will serve as a foundation for building sustainable shareholder value. Menu optimization should not only reduce costs, but also scale our menu selections to a level which improves overall execution. New product introductions will include a balance of craveable CPK items as well as seasonal selections and choices in line with health and wellness trends. Our global presence will continue to expand with the expected opening of 10 international franchised locations and we will continue to optimize our four-wall full-service restaurant portfolio. Achieving measurable success across these objectives will not only enhance our brand equity, but also increase our return on assets, bolster our free cash flow, and further strengthen our balance sheet.”
Average weekly sales for the Company’s 200 full-service restaurants were $57,431 in the first quarter of 2011 compared to $59,082 in the same quarter last year.
During the first quarter of 2011, the Company opened a full-service restaurant in Braintree, MA. International franchise partners opened a full-service restaurant in India, the Company’s second location in the country, and a full-service restaurant in Mexico, the Company’s tenth location in the country.
The Company outlined financial guidance for the second quarter of 2011 based on the following estimates and assumptions:
- Full-service comparable restaurant sales between 0% and positive 1.0%.
- Opening of two international franchised restaurants.
- Earnings in the range of $0.20 to $0.21 per diluted share.
California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, appetizers, soups, sandwiches and desserts. Of the chain’s 267 restaurants, 207 are company-owned and 60 operate under franchise or license agreements. CPK premium pizzas are also available to sports and entertainment fans at three Southern California venues including Dodger Stadium, Angel Stadium of Anaheim and STAPLES Center. Also included in the Company’s portfolio of concepts is LA Food Show Grill & Bar, which has locations in Manhattan Beach and Beverly Hills, California. The Company also has a licensing arrangement with Nestlé USA, Inc. to manufacture and distribute a line of California Pizza Kitchen premium frozen products.