pjgenot's Blog : Which pizza will you choose?

I just made a new pick in My P&P portfolio...I'm SELLING California Pizza Kitchen (CPKI).

The way I see it...unemployement is going up and discretionary incomes are going down...but people are still going to eat pizza.

The question is...

Do you buy a $5 pizza from Little Caesar's or get a $14 one from California Pizza?

Sure, I know Little Caesar's tastes like cardboard and pizza from CPKI is awesome. Blah, blah, blah. The deal is this...Joe Consumer either lost his job, might lose his job, had to take a pay cut, is down 40% in his retirement account, lost at least 20 - 30% of his home's value, etc. When times are tough and your kids want pizza...you get what you can afford.

I'm sorry, but a $14 pizza is a luxury item in our house...not a necessity.

What's going to happen to the stock price of CPKI when fewer people are buying their overpriced pies? I'm guessing it's going to tank.

What's your vote?