California Pizza Kitchen Reports 1Q Profit Up

LOS ANGELES (AP) — California Pizza Kitchen Inc. on Thursday reported its first-quarter profit rose slightly on cost-saving measures.

Fewer consumers were eating out during the recession, sending the restaurant chain's revenue down more than 2 percent to $161.1 million and comparable restaurant sales down nearly 6 percent.

But the Los Angeles-based company was able to lower its expenses and moderate its development. As a result, its net income grew to $2.6 million, or 11 cents per share for the quarter ended March 29, compared with $2.5 million, or 9 cents per share in the same quarter of last year.

Analysts surveyed by Thomson Reuters expected the company to earn 10 cents per share for the quarter on $161.1 million revenue.

Looking forward, California Pizza Kitchen management said it expects the weak economy to keep pressure on the restaurant industry but said they will focus on increasing traffic, offering new menu options and improving operational efficiency and cost control.

The company said it expects to earn 18 to 20 cents per share for the second quarter, in line with analyst expectations of 20 cents per share. And company management said expects a 5.5 to 6.5 percent drop in restaurant sales in the second quarter.

Shares of California Pizza Kitchen fell 52 cents to close at $14.81 Thursday and were down 11 cents to $14.70 in after-hours trading following the announcement.