California Pizza Kitchen Inc. (CPKI) recently reported third-quarter 2009 results with a mid-single digit fall in the top-line but a surprise double-digit rise in the bottom-line. Effective cost management and a lower tax rate have driven earnings growth.  The quarterly earnings of 24 cents a share surpassed the Zacks Consensus Estimate by a penny, jumping 20% from 20 cents posted in the prior-year quarter. The casual dining operator now expects fourth-quarter 2009 earnings in the range of 16 cents to 18 cents a share.  California Pizza Kitchen continues to experience fall in the top-line. After declining 2.2% and 3.2% year-on-year in the first and second quarters, respectively, total revenue dipped 5.3% to $164.8 million in the quarter under review.  Restaurant sales slipped 5.7% to $161.2 million, royalties from the Kraft licensing agreement soared 35.2% to $2.5 million, domestic franchise revenue fell marginally by 1% to ...

For Immediate Release

Chicago, IL – November 9, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Red Robin Gourmet Burgers Inc. (RRGB), Darden Restaurants Inc. (DRI), Brinker International Inc. (EAT), Cosi Inc. (COSI) and Tower Group Inc. (TWGP).

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Here are highlights from Friday’s Analyst Blog:

Red Robin Fails to Lure Diners

Red Robin Gourmet Burgers Inc. (RRGB), the casual dining restaurant operator, recently reported dismal third-quarter 2009 results. The quarterly earnings of 37 cents per share missed the Zacks Consensus Estimate by a penny and fell

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Red Robin Gourmet Burgers Inc. (RRGB), the casual dining restaurant operator, recently reported dismal third-quarter 2009 results. The quarterly earnings of 37 cents per share missed the Zacks Consensus Estimate by a penny and fell 17.8% from 45 cents posted in the prior-year quarter.

Total revenue tumbled 10.4% year-over-year to $187 million, as cash-strapped consumers are either trading down to quick-service restaurants or preferring to eat at home, leading to fall in traffic and same-store sales.

Same-store sales fell 14.9% for company-operated restaurants, driven by a 13.8% decline in guest counts and a 1.1% fall in the average guest check. Management expects guest count to decline in fiscal year 2009. Same-store sales for franchised restaurants in the U.S. dropped 14.4% and franchised restaurants in Canada fell 0.2%.

Other operators in the casual dining segment are Darden Restaurants Inc. (DRI), Brinker International Inc. (EAT) and Cosi Inc. (COSI).

Red Robin's

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Brinker International, Inc. (EAT), the operator of Chili's Grill & Bar, On The Border and Maggiano's restaurants, recently reported first quarter 2010 results, registering a double-digit decline in both top and bottom lines. Despite lower operating expenses, fall in interest expense and lower effective tax rate, adjusted net profit for the quarter dropped 15% year-on-year to $17.5 million on account of fall in revenue.  Total revenue slipped 21% to $778.1 million due to a 6% decline in comparable restaurant sales and an 18.6% fall in restaurant capacity due to the sale of 198 restaurants and the closing of 49 restaurants since the first-quarter 2009. In the second-quarter 2009, Brinker sold the Macaroni Grill restaurants (which were 189 of the total restaurants sold) to a private-equity firm Golden Gate Capital for $88 million, keeping a minority stake of nearly 20%.  Brinker’s quarterly earnings of 17 cents a ...

Luby’s, Inc. (LUB), the casual dining restaurant operator, recently reported fourth-quarter 2009 results. The company reported quarterly loss of 20 cents a share compared to a loss of 13 cents reported in the prior-year quarter. The loss per share was in-line with the Zacks Consensus Estimate. Restaurant sales tumbled 14.7% year-on-year to $80.2 million, whereas Culinary Contract Services jumped 33.8% to $4 million. The rise in Culinary Contract Services was due to the operation of 15 facilities in the reported quarter compared to 10 facilities in the prior year quarter. Same-store sales fell 13.6% in the quarter -- the sharpest decline registered by the company in fiscal year 2009, due to a fall in traffic counts. Store level profit dipped more than 50.0% to $4 million, whereas store level profit margin shrank 400 basis points to 5.0%. The rise of 30 basis points in food ...

California Pizza Kitchen, Inc. (CPKI), a leading casual dining restaurant chain, recently raised its third quarter 2009 earnings outlook on the back of operating efficiencies and a lower tax rate that helped offset falling top-line. Management now expects third quarter earnings in the range of 22 cents to 24 cents a share, up from 19 cents to 21 cents a share predicted earlier.  The Zacks Consensus Estimate for the quarter is 21 cents. California Pizza Kitchen registered a decline of 5.3% year-on-year in revenue to $164.8 million in the quarter from $174 million reported in the prior-year quarter. The restaurant chain also experienced a steep decline in comparable restaurant sales, than it had expected for the quarter.  Comps fell 8.0% in the third quarter of 2009 compared to a 2.4% drop posted in the year ago quarter. Management had earlier forecasted comps to decline in the ...

Brinker International Inc.’s (EAT) MACD indicator has moved into bearish territory with a reading of -0.0460. The Zacks #5 Rank (“Strong Sell") stock has slipped nearly 1% to $15.02 in morning trade. The Zacks Consensus Estimate on the company’s earnings for the fiscal year ending June 2010 has reduced by 17 cents over the past 2 months to $1.33 per share."EAT" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Abington Bancorp Inc (ABBC) Agrium Inc (AGU) Allis-Chalmers Energy Inc (ALY) Amerigas Partners LP (APU) Ameristar Casinos Inc (ASCA) Badger Meter Inc (BMI) BlueLinx Holdings Inc (BXC) Brinker International Inc (EAT) British Sky Broadcasting Group Plc (BSY) Brookfield Properties Corp (BPO) Cbeyond Inc (CBEY) Clarient Inc (CLRT) CRA International Inc (CRAI) Dynamic Materials Corp (BOOM) EnPro Industries Inc (NPO) First Bancorp (FBP) First Commonwealth Financial Corp (FCF) ...

Brinker International, Inc.’s (EAT) share price has entered into oversold territory with a stochastic value of 18.52. Analysts have been increasing their estimates on the Zacks #2 Rank (“Buy") company’s earnings for the year ending Jun 2010, with the consensus up 2 cents over the past 2 months to $1.58 per share."EAT" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

Highlighted stocks include Oriental Financial Group Inc. (...