OK, so I was wrong. I'm man enough to admit when I make a mistake. Last quarter, I wrote about the mixed results at California Pizza Kitchen
For its second quarter, the results seem a bit more clear-cut. Net income rose 14.8% over the same period last year, to $6.2 million, or $0.32 per share. Revenues jumped 16.5%, to $119.4 million. Perhaps most impressive, comp restaurant sales grew 8.6%, on top of last year's 6.6% increase.
Not willing to sit still, the company, best known for its innovative pizzas, continues to offer unique new creations, including a Chipotle Chicken Pizza. However, there's more to California Pizza Kitchen than a plethora of tasty pizzas. Its recently updated menu includes new salad offerings and appetizers, which are being well-received.
The company expects the good times to continue and projects third-quarter earnings of $0.32 to $0.33 per diluted share. It is also feeling more confident about its full-year results, raising estimates to a range of $1.16 to $1.18 per share. Unfortunately, analysts have even more faith in its ability and expect earnings of $1.20 per share for the year. That means that even if it meets its own expectations, its stock could suffer if it doesn't reach the level analysts anticipate.
I've already stated that I'm man enough to admit to my mistakes, but I can also be stubborn at times. This is one of those times. Once again, I think the company is progressing nicely and will continue to do so. However, I also think its stock remains rich (particularly after rising 41.8% in one quarter). Sorry, I just think a forward P/E in the mid-20s is too high for its expected growth.
Too rich for your blood? Check out some of CPK's competition:
PF Chang's China Bistro
Fool contributor Mike Cianciolo welcomes feedback and doesn't own shares of any company mentioned above.