News You Can Chew On

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There always seems to be restaurant news on the menu. As I do every week, let's take a look at some of this week's more appetizing stories.

1. California dreaming
There's more dough at California Pizza Kitchen (NYSE: CPKI) these days. The casual-dining chain posted a quarterly profit of $0.20 a share, well ahead of last year's showing, and at the high end of the company's guidance. Revenue climbed 7% to $174 million.

Is it a great report? Not exactly. The top-line gain was the handiwork of expansion, as comps fell by 2.4% during the period. The company was able to smoke past last year's profit mark, but mostly because it took huge store closure hits in 2007. Still, with most casual-dining concepts struggling, the pizza and pasta chain smells like a relative winner.

2. Getting cozy with Cosi
The sandwiches are flat, and so were the third-quarter results at Cosi (Nasdaq: COSI). The gourmet sandwich shop posted a 0.3% boost in revenue, as a quarterly loss of $0.08 a share mirrored last year's showing.

In all fairness to Cosi, last year's deficit included a favorable insurance settlement. Back that out, and the company's operating results improved by 16% this time around. Cosi has just 144 mostly company-owned stores, though several franchised units have recently opened in the United Arab Emirates. With global expansion in the works, I guess that at Cosi, the world is flat, too.

3. Batman and Red Robin
Not all burger chains are hopping at the store level. Red Robin Gourmet Burgers (Nasdaq: RRGB) may have posted a 10.6% spike in revenue in its latest quarter, but like California Pizza Kitchen, it's all about the heady expansion. Restaurant operating margins fell during the period, weighed down by a 2.2% dip in comps.

Earnings for the quarter fell to $0.40 a share, or $0.45 a share before asset impairment charges.

4. The steaks aren't high
This isn't a good time to be a high-end chophouse. Between consumers wary of overspending, and corporate budgets shying away from entertaining business clients at swanky steakhouses, how can Morton's Restaurant Group (NYSE: MRT) thrive?

It can't. The company behind the legendary Morton's of Chicago posted both a sharp 7.6% dip in comps and an overall loss for the quarter. It's no surprise to see both Morton's and Ruth's Hospitality (Nasdaq: RUTH) hit fresh all-time lows this morning. Until the economy bounces back, their juicy steaks will be hard sells in lean times.

5. Hunting for caribou
Did you hear the one about the premium coffeehouse operator that's improving its numbers? Neither did I, but at least Caribou Coffee (Nasdaq: CBOU) is holding its own. Despite a 4.7% decline in comps and a small dip in net sales, the company posted improved EBITDA in its latest quarter.

Sure, the cash flow improvement is the partly the sorry result of fewer closures this time around, but the company's net loss would have narrowed before a litany of one-time charges hit.

6. Pie in the sky
How are you feeling about pizza delivery chains these days? The good news is that business could be brisk, as more folks decide to order a pie instead of eating out. The bad news is that franchisees have to fret over things like rising dairy costs and fluctuating labor and fuel prices.

Amid that tricky climate, Papa John's (Nasdaq: PZZA) checks in with its quarterly results. Comps and revenue inched higher during the period, but earnings took a hit.

Papa John's owns just 23% of its domestic locations, but it wants less exposure to the operating risks. The company wants to refranchise more of its units, in an effort to own less than 20% of its stateside pizzerias. This is certainly not the best time to be selling units, but Papa John's is willing to offer 100% financing to prospective buyers, under the assumption that they will seek third-party lenders once the credit markets stabilize. That's right -- they'll give you the dough and the, uh, dough.

Check out this week's dessert specials:

• 3 Restaurant Stocks Going for the Gold
• Last Week's Chewy News
• 3 More Outrageously Cheap Stocks