CPK trims 1st-Q EPS estimate, cites steeper labor expenses

Nation's Restaurant News, April 7, 2003

LOS ANGELES -- Citing higher-than anticipated labor costs, California Pizza Kitchen Inc. reduced its first-quarter earnings-per-share estimate to between 20 cents and 22 cents, from its previous projection of 22 cents to 24 cents. The analysts' consensus estimate was 23 cents, according to Thomson Financial Network. In the year-ago quarter, CPK reported EPS of 20 cents.

CPK said same-store sales through the first 12 weeks of the 13-week first quarter, which ended March 30, were up in the mid 2-percent range and estimated that revenue would grow about 17 percent to 18 percent for the quarter.

The company said the severe winter weather in February made it difficult to staff its restaurants accurately, and as a result, it anticipated labor as a percentage of sales to increase by about 110 to 130 basis points, or 1.1 percent to 13 percent, compared with the year-ago quarter.

The company plans to release its first-quarter earnings April 22.