Shares of California Pizza Kitchen fell Wednesday after an analyst said the restaurant operator’s earnings and sales growth have softened in a tough U.S. economy.
Wedbush Morgan Securities analyst Brian Moore started coverage of the company at “Sell.”
Moore says the company has struggled to post consistent earnings per share growth over the past several years. He thinks consumers may also start dining where they can get more value for their money, especially given the company’s higher menu prices.
Moore says Los Angeles-based California Pizza Kitchen “puts the least amount of quality food on consumers’ plates” at the “wrong size for their wallets.”