California Pizza Kitchen (CPKI) Shares Nose-Diving Amid Weaker Q2 Outlook
Tweet
Share
E-mail
Get Alerts CPKI Hot Sheet
Join SI Premium – FREE
California Pizza Kitchen Inc. (NASDAQ: CPKI), which recently announced that it is up for sale, said Monday that its second-quarterly profit will be lower due to sales for the months of May and June coming in lower-than-expected.
The new outlook has caused a nearly 10 percent freefall in shares of CPKI today. The stock last traded at $17.46.
The company said that it now expects to see quarterly earnings in the range of 10 cents to 15 cents per share, well off management's previous guidance of 24 cents to 26 cents per share. Analysts are currently expecting California Pizza Kitchen to report 26 cents per share.
The company added that it now expects to see same store sales plunge 6 percent to 7 percent in the period, while it had previously foreseen a 0.5 percent to 2.5 percent drop.
“Weaker than forecasted May and June-to-date comparable restaurant sales will have a deleveraging effect on our P&L and a decline in earnings from previous guidance,” Rick Rosenfield and Larry Flax, co-CEOs of California Pizza, said. “The combination of a volatile economy in 2009 and running the program for two consecutive years in 2008 and 2009 limited our visibility into the program’s impact. However, given the traction of the 2009 program, we will reintroduce it with additional exciting prizes that are expected to drive traffic in the third quarter.”
The co-CEO added that a timing shift in its "Thank You Card Program,” also contributed to the weaker-than-expected forecasted results.
The company will provide additional information in a pre-announcement of second-quarter results on July 14, and will release its full quarterly earnings release on August 5.
The new outlook has caused a nearly 10 percent freefall in shares of CPKI today. The stock last traded at $17.46.
The company said that it now expects to see quarterly earnings in the range of 10 cents to 15 cents per share, well off management's previous guidance of 24 cents to 26 cents per share. Analysts are currently expecting California Pizza Kitchen to report 26 cents per share.
The company added that it now expects to see same store sales plunge 6 percent to 7 percent in the period, while it had previously foreseen a 0.5 percent to 2.5 percent drop.
“Weaker than forecasted May and June-to-date comparable restaurant sales will have a deleveraging effect on our P&L and a decline in earnings from previous guidance,” Rick Rosenfield and Larry Flax, co-CEOs of California Pizza, said. “The combination of a volatile economy in 2009 and running the program for two consecutive years in 2008 and 2009 limited our visibility into the program’s impact. However, given the traction of the 2009 program, we will reintroduce it with additional exciting prizes that are expected to drive traffic in the third quarter.”
The co-CEO added that a timing shift in its "Thank You Card Program,” also contributed to the weaker-than-expected forecasted results.
The company will provide additional information in a pre-announcement of second-quarter results on July 14, and will release its full quarterly earnings release on August 5.
You May Also Be Interested In
- Alphabet Sees FY26 Capex $195B To $205B, Saw $180B To $190B
- Waste Connections (WCN) Tops Q2 EPS by 14c ; Offers Guidance
- Sonoco (SON) Tops Q2 EPS by 2c; offers guidance
Create E-mail Alert Related Categories
Guidance, Insiders' BlogSign 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!
