CPK 1st-Q net drops almost 22 percent on increased costs

Nation's Restaurant News,  May 21, 2007  

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LOS ANGELES -- California Pizza Kitchen Inc. reported a 21.9-percent year-over-year drop in first-quarter profit on increased labor and other costs that offset a revenue gain of 15.2 percent, to $149.4 million.

The parent company to the 212-unit namesake chain posted a same-store sales gain of 4.7 percent for the quarter, making it one of the exceptions to the casual-dining sector's sales slowdown.

The company earned $3.6 million, or 18 cents per share, for the quarter ended April 1, compared with year-ago earnings of $4.6 million, or 23 cents per share. In the latest quarter labor expenses increased 18 percent to $56.2 million, and the cost of food, beverage and paper supplies rose 13.1 percent to $36.4 million.

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