California Pizza Kitchen surges on 2Q outlook hike

The stock advanced 51 cents, or 4.6 percent, to $11.69.

After the market closed Wednesday, the restaurant chain said it now expects a quarterly profit of 25 cents to 26 cents per share, up from a previous estimate of 16 cents to 17 cents per share.

Analysts polled by Thomson Financial predict earnings of 17 cents per share.

The company said its same-store sales, or sales at stores open at least a year, rose 1.4 percent. It had expected flat same-store sales. Meanwhile, its total sales increased 11.3 percent to $176.6 million, topping analysts' target of $175.3 million.

Wedbush Morgan Securities analyst Brian Moore, who maintains a "Hold" rating on the stock, and a $13 price target, said in a note to investors that the higher sales may have benefited from a two-month old "Thank You Card" discounting program.

In the program, which started in April, the chain gave out thank you cards to customers that included an envelope containing a guaranteed prize. To claim the prize, customers had to come back to the restaurant for another visit and have the envelope opened by a California Pizza Kitchen manager. The prizes ranged from 10 percent off a meal to $25,000.

But Moore said although sales were strong in the second quarter, that may not continue in future periods, since the company has raised its prices.