Expenses at CPK drag down profit
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California Pizza Kitchen Inc. reported a 79% drop in third-quarter earnings due to costs from closing four restaurants and forecast 2008 profit below Wall Street estimates.
Third-quarter net income fell to $1.4 million, or 5 cents a share, from $6.7 million, or 23 cents, a year earlier. Revenue rose 13.5% to $162 million. Same-store sales, a key measure of retail health, grew 3.5%.
For the fourth quarter, the Los Angeles-based company forecast earnings of 22 cents to 23 cents a share. Analysts were expecting 23 cents a share, according to Reuters Estimates.
For 2008, CPK expects to earn 85 cents to 92 cents a share. Analysts were expecting earnings of 98 cents a share, Reuters Estimates said.
The company’s shares fell 33 cents to $14.63.
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