California Pizza Kitchen to Expand to Japan (CPKI)

You have probably heard of California Pizza Kitchen (CPKI) and maybe you've been lucky enough to eat there. Unfortunately I haven't been able to because every time I try the place is packed and there aren't that many of them to begin with. Friends and colleagues tell me CPKI is "the best."

Mainland Japanese restaurant-goers and pizza lovers will get their chance to try some CPKI as early as this fall, following an announcement yesterday that CPKI has signed a franchise deal with WDI Corporation of Japan to open a minimum of fifteen locations over the next 10 years. CPKI has already opened restaurants in Asia with locations in China, the Philippines, Malaysia, Singapore, and Indonesia.

I don't know much about the company but from a quick look at its financials, it seems to have no debt, positive earnings and cash flow, increasing sales, low number of shares outstanding, high institutional ownership, and growth-oriented management. CPKI did suffer in Q4 however, in which it said its net income declined by 39% due to stock options expenses, store closures, and legal settlement costs.

Regarding CPKI's deal with WDI, I think it made a good decision to expand to Japan and in its choice for business partner. Again I don't know too much about WDI except I actually have been able to grab a seat at its Tony Roma's and Hard Rock Cafe in Tokyo despite those places being consistently busy. Also, WDI has decades of experience and almost 200 locations under its management.

CPKI 1-yr chart: