Thursday,California Pizza Kitchen Inc.(CPKI), a restaurants chain operator, reported a 16.8% increase in third quarter profit, notwithstanding a 5.3% decline in revenue. Looking ahead, the company provided its earnings outlook for the fourth quarter, indicated to come in below analysts' estimates.
California Pizza Kitchen reported a third quarter net income of $5.79 million or $0.24 per share, an increase from $4.96 million or $0.20 per share in the prior year quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.
The Los Angeles, California-based company's total revenue for the quarter was $164.83 million, down 5.3% from $173.95 million in the comparable period last year. Fifteen analysts had a revenue expectation of $164.77 million for the quarter.
Full service comparable restaurant sales decreased 8.0% for the quarter and average weekly sales for the company's 198 full service restaurants declined to $60.94 million from $66.71 million for the same quarter last year.
Restaurant sales for the quarter declined to $161.15 million from $170.81 million in the prior year quarter. The company also received royalties from Kraft licensing agreement of $2.50 million compared to $1.85 million in the previous year quarter.
In the recent quarter domestic franchise sales was marginally down to $0.71 million,from $0.72 million and international franchise sales was $0.46 million, down from $0.57 million last year.
Total costs and expenses declined to $156.86 million from $166.53 million, while operating income was higher at $7.97 million, compared with $7.42 million last year.
For the nine-month period, the company reported net income of $14.48 million or $0.60 per share, compared with $13.97 million or $0.54 per share in the prior-year. Year-to-date, revenues declined to $496.83 million from $515.30 million last year.
Looking forward to the fourth quarter, the company expects earnings to be in a range of $0.16 - $0.18 per share. Analysts currently expect earnings of $0.20 per share for the quarter.
The company also expects its comparable sales in the range of negative 5.5% to negative 6.5% and plans to open international full service franchise restaurant in the quarter.
In the third quarter, the company added one full service restaurant in Cherry Hill, New Jersey and one of its franchise partners launched the first California Pizza Kitchen on a college campus, opening a fast-casual location at Hofstra University in Hempstead, New York.
California Pizza Kitchen anticipates opening eight full service restaurants in the fiscal 2010, while franchise partners are expected to open eight international and two domestic franchise locations during the year.
CPKI closed Thursday's regular trading at $13.84, up $0.25 or 1.84%, on a volume of 0.31 million shares on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.