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UPDATE 2-Calif Pizza raises Q2 profit view, shares up
July 13, 2010 / 12:54 PM / 7 years ago

UPDATE 2-Calif Pizza raises Q2 profit view, shares up

* Sees Q2 EPS $0.15-$0.17 vs est $0.13

* Q2 sales down 5 pct, but beat Street view

* Q2 comp sales slip 5.9 pct

* Shares up 5 pct before the bell (Adds details, background on Thank You Card promotion, updates share movement)

July 13 (Reuters) - California Pizza Kitchen Inc CPKI.O, which has put itself up for sale, raised its second-quarter earnings view, and reported quarterly sales that beat market expectations, sending its shares up 5 percent in trading before the bell.

The company, which offers roasted artichoke and spinach pizza and other offbeat menu items, revised its earnings view for a second time to 15 cents to 17 cents a share, up from an earlier forecast of 10 cents to 15 cents a share. Analysts were expecting the company to report earnings of 13 cents a share during the quarter, according to Thomson Reuters I/B/E/S. [ID:nASA00IL0]

In June, the company cut its second-quarter profit forecast after the absence of its popular Thank You Card promotion contributed to weaker-than-expected sales. [ID:nN21231561]

The promotion gave consumers prizes ranging from discounts off a meal, to $50,000.

On Tuesday, the company said it was re-launching its Thank You Card Program on July 28, and will include a cash prize of $100,000.

It also reported a 5 percent drop in second-quarter sales to $163.1 million, but surpassed analysts’ expectation of sales of $159.3 million.

California Pizza Kitchen also posted a 5.9 percent drop in comparable restaurant sales, slightly below its forecast of a 6 percent to 7 percent dip.

It added that same-restaurant sales through July 11 fell only 0.6 percent.

The 25-year-old restaurant chain in April said it had hired investment bank Moelis & Company as its exclusive financial adviser to consider changes in its capital structure, a possible sale or other business combination.

Shares of the company were up at $15.50 in pre-market trade on Tuesday. They closed at $14.72 Monday on Nasdaq. (Reporting by Shradhha Sharma in Bangalore; Editing by Jarshad Kakkrakandy)

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