Business

High Quality Wines at Affordable Prices Complement CPK’s Innovative Dishes

California Pizza Kitchen Inc. (CPKI) recently reported third-quarter 2009 results with a mid-single digit fall in the top-line but a surprise double-digit rise in the bottom-line. Effective cost management and a lower tax rate have driven earnings growth. The quarterly earnings of 24 cents a share surpassed the Zacks Consensus Estimate by a penny, jumping 20% [...]

(CPKI) California Pizza Kitchen’s Profit Climbs

California Pizza Kitchen Inc. (CPKI) recently reported third-quarter 2009 results with a mid-single digit fall in the top-line but a surprise double-digit rise in the bottom-line. Effective cost management and a lower tax rate have driven earnings growth. 

The quarterly earnings of 24 cents a share surpassed the Zacks Consensus Estimate by a penny, jumping 20% from 20 cents posted in the prior-year quarter. The casual dining operator now expects fourth-quarter 2009 earnings in the range of 16 cents to 18 cents a share. 

California Pizza Kitchen continues to experience fall in the top-line. After declining 2.2% and 3.2% year-on-year in the first and second quarters, respectively, total revenue dipped 5.3% to $164.8 million in the quarter under review. 

Restaurant sales slipped 5.7% to $161.2 million, royalties from the Kraft licensing agreement soared 35.2% to $2.5 million, domestic franchise revenue fell marginally by 1% to $714,000, and international franchise revenue plunged 18% to $468,000. 

Casual dining restaurant operators are facing the brunt of the global meltdown with sagging comparable-store sales and declining traffic, as cash-strapped consumers are dining out less and looking for cheaper alternatives such as fast food centers. Other operators in the casual dining segment are Darden Restaurants Inc. (DRI), Brinker International Inc. (EAT), Cosi Inc. (COSI) and Red Robin Gourmet Burgers Inc. (RRGB). 

California Pizza Kitchen’s comparable restaurant sales for the quarter dipped 8%, after declining 6.5% and 5.9% in the second and first quarters of 2009. The restaurant chain expects fourth-quarter 2009 comps to fall within the range of 5.5% to 6.5%. 

Restaurant operating cash flow margin shrank 40 basis points (bps) to 17%, hurt by a 120 bps rise in labor costs to 37.8% and a 100 bps increase in operating and occupancy costs to 22.2%, partially offset by a 180 bps fall in food and beverage costs to 23%. 

During the quarter, California Pizza Kitchen opened one company-owned full service domestic restaurant and one franchised domestic restaurant, closing one company-owned full service domestic restaurant and one franchised domestic restaurant. Management expects to open one international full service franchise restaurant in fourth-quarter 2009. 

In fiscal year 2010, the company plans to open eight full service restaurants, while franchisees plan to open eight international and two domestic locations. Currently, the company operates 256 locations, of which 208 are company-owned and 48 are operated under franchise or license agreements. 

California Pizza Kitchen ended the quarter with cash and cash equivalents of $14.3 million, total debt of $37 million and shareholders’ equity of $197.5 million.
Read the full analyst report on "CPKI"
Read the full analyst report on "DRI"
Read the full analyst report on "EAT"
Read the full analyst report on "COSI"
Read the full analyst report on "RRGB"
Zacks Investment Research

Texas Roadhouse Inc. (TXRH), a casual dining restaurant chain, recently reported third quarter results that topped the Zacks Consensus Estimate on the heels of lower commodity and pre-opening costs besides a jump in the top-line. Earnings of 15 cents a share surpassed the Zacks Consensus Estimate of 12 cents and climbed 27% year on year. On [...]

(TXRH) Texas Roadhouse Earnings Report Beats in Q3

Texas Roadhouse Inc. (TXRH), a casual dining restaurant chain, recently reported third quarter results that topped the Zacks Consensus Estimate on the heels of lower commodity and pre-opening costs besides a jump in the top-line.
 
Earnings of 15 cents a share surpassed the Zacks Consensus Estimate of 12 cents and climbed 27% year on year. On account of better than expected results, Texas Roadhouse raised its full-year guidance and now expects earnings to rise 20% as against the 5%−10% previously anticipated.
 
For the fiscal 2010, management expects EPS growth to be flat to 10%, if comparable restaurant sales lie within the range of (2%) to flat.
 
The growth in the top-line decelerated. After climbing 12% in the second quarter, total revenues showed a sluggish growth of 4% to $226.5 million in the reported quarter. Restaurant sales jumped 4% to $224.4 million, whereas franchise royalties and fees ascended 2.7% to $2.1 million.
 
Like other casual dining restaurant operators – Cosi Inc. (COSI), Red Robin Gourmet Burgers Inc. (RRGB), and California Pizza Kitchen Inc. (CPKI) – Texas Roadhouse too has been experiencing sagging comparable restaurant sales and falling traffic as cash-strapped consumers are trading down to quick service restaurant operators like McDonald’s Corp. (MCD), Yum! Brands Inc. (YUM) and Chipotle Mexican Grill (CMG) due to cheaper dining options, or else they prefer to eat at home.
 
Comparable restaurant sales fell 4.6% at company-owned restaurants and 3.6% at franchised restaurants. Comps fell 2.3% in the first four weeks of the fourth quarter.
 
Restaurant operating cash flow climbed 12.8% to $38.5 million, whereas restaurant operating cash flow margin expanded 133 basis points to 17.2%.
 
During the quarter, Texas Roadhouse opened one company-owned and two franchised restaurants, and closed two company-owned restaurants. Management plans to open 17 company-owned and three franchised restaurants in fiscal 2009. In fiscal 2010, it plans to open about 15 company-owned restaurants.
Read the full analyst report on "TXRH"
Read the full analyst report on "COSI"
Read the full analyst report on "RRGB"
Read the full analyst report on "CPKI"
Read the full analyst report on "YUM"
Read the full analyst report on "MCD"
Read the full analyst report on "CMG"
Zacks Investment Research

The sluggish economy and rising unemployment continues to hurt Burger King Holdings Inc. (BKC) results. The company’s fiscal 2010 first quarter earnings of 34 cents a share missed the Zacks Consensus Estimate of 37 cents and fell 11% from 38 cents reported in the prior-year quarter. Burger King’s total revenue for the quarter, dipped 5% to [...]

(BKC) Burger King’s Profit Slides Below Estimates

Two Veteran Wall Street Analysts discuss: (Val:) CSX, CEC, CPKI, EME, WMI, EFX

Two Veteran Wall Street Analysts discuss: (Val:) CPKI, BCO, ABCO; (Vern:) DOX, MMS, EXBC

Tom Dorsey and Tammy DeRosier - Remaining Calm in Volatile Times

Ian Stansel takes a look back at news that drove the major market indices today.