Please ensure Javascript is enabled for purposes of website accessibility

California Dreamy

By Rick Munarriz – Updated Nov 15, 2016 at 5:11PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BBQ pizza pioneer bakes up more dough.

Leave it to California Pizza Kitchen (NASDAQ:CPKI) to keep the toppings coming. The casual-dining chain specializing in gourmet pizza pies and pasta dishes announced that second-quarter earnings will clock in ahead of expectations.

If it sounds familiar, it's because the scene was duplicated three months ago. This time around, the company is looking to earn either $0.29 or $0.30 a share for the June quarter. That range is a penny better than the original guidance issued back in May.

Same-store sales rose by a healthy 4.8%. That's an amazing feat when one considers that comps soared 8.6% higher in the second quarter of 2005. In other words, the typical store rang up 13.8% more in sales than it did during the same period two years ago.

California Pizza Kitchen owns most of its 194 restaurants. In a quick-service world where franchising is the expansion vehicle of choice, CPK's hands-on approach comes in handy when things are going well. Shareholders can take advantage of the chain's store-level popularity a little better that way.

I have described CPK as Cheesecake Factory (NASDAQ:CAKE) meets Papa John's (NASDAQ:PZZA), but that may not be appropriate, given the recent weakness at Cheesecake Factory.

CPK is a class of its own these days. There's no topping the topping specialist.

Longtime Fool contributor Rick Munarriz always seems to have a restaurant stock or two in his portfolio, and that happens to include Cheesecake Factory. He is a member of the Rule Breakers newsletter team. The Motley Fool has a disclosure policy .

None

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Papa John's International, Inc. Stock Quote
Papa John's International, Inc.
PZZA
$75.15 (1.39%) $1.03
The Cheesecake Factory Incorporated Stock Quote
The Cheesecake Factory Incorporated
CAKE
$28.43 (-2.44%) $0.71

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.