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March sales beat previous forecast
California Pizza Kitchen Inc (Los Angeles) is exploring a sale of the company, according to Reuters. The news comes as the chain reports its first-quarter profit came in higher than expected.
Investment bank Moelis & Company has been hired by the 25-year-old restaurant chain as the exclusive financial adviser to consider changes in its capital structure, a possible sale or other business combination. "I think it's going to be a sale rather than a change in capital structure or a merger," MKM Partners restaurant analyst Stephen Anderson told Reuters.
The company’s revenue dropped 2.7 percent to $156.7 million in the first quarter ended on April 4, while same-store full-service restaurant sales declined 2.7 percent. The results are better than the 3 to 4 percent drop that California Pizza forecast in February.
The company attributes better February and March comparable sales to a new call center for take-out orders, an expanded wine selection, catering programs and a new "Small Cravings" menu.
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