California Pizza Kitchen (NASDAQ:CPKI), best known for its unique offerings, just dished up a quarter that was as diverse as its toppings.
For the first quarter, revenues grew 11.9% to $110.3 million, yet costs increased 12.3%. Comp sales rose 9.3%, but operating income suffered from drastically higher costs compared with last year. Net income was up barely a sliver to $4.3 million, or $0.22 per share.
The company is continuing with transition plans, including menu improvements and sustainable growth. It managed to increase its average customer check to $12.39, from $11.60 last quarter. It also opened five new restaurants in the quarter and plans to open another three in the second quarter.
Based on good comps and the addition of new restaurants, California Pizza Kitchen expects earnings of $0.26 to $0.27 per share for the second quarter. It increased its full-year expectations to $1.13 to $1.15. But the high end of its guidance is just equal to what analysts are expecting. That means that anything less would likely pull the stock lower.
Although I like what's cooking with California Pizza Kitchen's growth plans, I just don't think full-year earnings growth of 7% justifies its current price. For it to be worth ordering, it's going to have to top that.
For another slice of the pie, see:
Fool contributor Mike Cianciolo welcomes feedback and doesn't own shares of California Pizza Kitchen.
