KeyBanc Upgrades California Pizza Kitchen (CPKI) to Buy; Optimistic After Conversation W/Mgmt
CPKI Hot Sheet
Rating Summary:3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
KeyBanc upgrades California Pizza Kitchen (NASDAQ: CPKI) from Hold to Buy. Price target $18.
KeyBanc analyst says, "While California Pizza Kitchen pre-announced 3Q09 same-store sales (SSS) that declined by 8%, the Company still managed to increase its EPS guidance to $0.22-$0.24 from the previous range of $0.19-$0.21. Additionally, commentary from management on the press release and in our following conversation has given us reason for some optimism for CPKI's sales and earnings trends in the coming quarters. Management indicated that it has seen signs of success from sales-driving initiatives that include an expanded wine program, a catering initiative and a take-out call center. The Company also continues to see impressive cost controls through a combination of a theoretical vs. actual food cost initiative, an energy efficiency program and a best practices initiative, all of which we believe will lead to sustainable cost cuts."
"Given the increased guidance, we have raised both our 2009 and 3Q09 estimates by $0.03 to $0.80 from $0.77 and to $0.24 from $0.21, respectively. We have also raised our 2010 estimate by $0.07 to $0.90 from $0.83."
To see more analyst ratings on CPKI Click Here.
California Pizza Kitchen, Inc., together with its subsidiaries, engages in the ownership, operation, license, and franchising of a chain of casual dining restaurants in the United States.
KeyBanc analyst says, "While California Pizza Kitchen pre-announced 3Q09 same-store sales (SSS) that declined by 8%, the Company still managed to increase its EPS guidance to $0.22-$0.24 from the previous range of $0.19-$0.21. Additionally, commentary from management on the press release and in our following conversation has given us reason for some optimism for CPKI's sales and earnings trends in the coming quarters. Management indicated that it has seen signs of success from sales-driving initiatives that include an expanded wine program, a catering initiative and a take-out call center. The Company also continues to see impressive cost controls through a combination of a theoretical vs. actual food cost initiative, an energy efficiency program and a best practices initiative, all of which we believe will lead to sustainable cost cuts."
"Given the increased guidance, we have raised both our 2009 and 3Q09 estimates by $0.03 to $0.80 from $0.77 and to $0.24 from $0.21, respectively. We have also raised our 2010 estimate by $0.07 to $0.90 from $0.83."
To see more analyst ratings on CPKI Click Here.
California Pizza Kitchen, Inc., together with its subsidiaries, engages in the ownership, operation, license, and franchising of a chain of casual dining restaurants in the United States.
You May Also Be Interested In
- UPDATE: UBS Upgrades Assured Guaranty (AGO) to Buy; Opportunity Opens After Recent Dip on Moody's Review
- UPDATE: Williams Financial Group Upgrades Semtech Corp. (SMTC) to Buy; Check Again...Quarter Was Fairly Strong
- UPDATE: Nomura Securities Upgrades Central European Distribution (CEDC) to Neutral; Strategic Alliance with Russian Standard
Create E-mail Alert Related Categories
UpgradesRelated Entities
UBS, KeyBancSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
