California Pizza Kitchen Announces Financial Results for the Third Quarter 2009

LOS ANGELES - (BUSINESS WIRE) - California Pizza Kitchen, Inc. (Nasdaq: CPKI) today reported revenues and net income for the third quarter ended September 27, 2009.

Highlights for the third quarter of 2009 relative to the same quarter a year ago were as follows:

• Total revenues decreased 5.3% to $164.8 million
• Full service comparable restaurant sales decreased 8.0%
• Net income increased 16.8% to $5.8 million
• Earnings per diluted share increased 20% to $0.24
• Outstanding debt of $37.0 million, a $13.0 million reduction from the second quarter of 2009

Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, "Our ability to drive bottom-line results in the current environment was largely due to the sustainable operating efficiencies we realized throughout 2009. To complement this success, we have launched several revenue and traffic building initiatives in the fourth quarter in addition to yesterday's new menu introduction. These initiatives include our sales productivity report, take-out call center, catering program and an expanded wine program. These efforts are in line with our strategy which we believe will enhance our brand equity, maximize financial performance and build shareholder value over the long run."

Average weekly sales for the Company's 198 full service restaurants were $60,945 in the third quarter of 2009 compared to $66,718 for the same quarter last year.

During the third quarter of 2009, the Company added one full service restaurant in Cherry Hill, New Jersey. In addition, one of the Company's franchise partners launched the first California Pizza Kitchen on a college campus, opening a fast-casual location at Hofstra University in Hempstead, New York.

The Company also outlined its financial guidance for the fourth quarter of 2009 based on the following assumptions:

• Comparable restaurant sales between negative 5.5% and negative 6.5%
• Opening one international full service franchise restaurant
• Earnings estimated in the range of $0.16-$0.18 per diluted share

In 2010, the Company anticipates opening eight full service restaurants, while franchise partners are expected to open eight international and two domestic franchise locations.

The Company will host a conference call today at approximately 4:30 pm ET. A webcast of the conference call can be accessed at www.cpk.com.

California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain. The Company's full service restaurants feature an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, soups, appetizers and sandwiches. The average guest check is approximately $14.30. As of November 5, 2009 the Company operates, licenses or franchises 256 locations, of which 208 are company-owned and 48 operate under franchise or license agreements. The Company also has a licensing agreement with Kraft Pizza Company which manufactures and distributes a variety of California Pizza Kitchen premium frozen products.

This release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include projections of earnings, revenue or other financial items, statements of the plans, strategies and objectives of management for future operations, statements concerning proposed new products or developments, statements regarding future economic conditions or performance, statements of belief and statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate," "guidance" and similar words.

Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Our actual results may and will likely differ materially from the expectations referred to herein. Among the key factors that may have a direct bearing on our operating results, performance and financial condition are deteriorating economic conditions, revenue from third party licensees and franchisees, changing consumer preferences and demands, the continued availability of qualified employees and our management team, the maintenance of reasonable food and supply costs, our exposure to the California market and numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. California Pizza Kitchen undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

	Selected Unaudited Consolidated Financial and Operating Data
	(Dollars in thousands, except for per share and operating data)
			Quarter Ended								Nine Months Ended
			September 27,				September 28,				September 27,				September 28,
			2009				2008				2009				2008
	Statement of Income:
	Revenues:
	Restaurant sales		$	161,156			$	170,816			$	487,860			$	507,356
	Royalties from Kraft licensing agreement			2,501				1,850				5,425				4,248
	Domestic franchise revenues			714				721				2,039				2,120
	International franchise revenues			468				571				1,515				1,579
	Total revenues			164,839				173,958				496,839				515,303
	Costs and expenses:
	Food, beverage and paper supplies			37,009				42,396				115,094				125,551
	Labor (1)			60,929				62,557				184,608				188,833
	Direct operating and occupancy			35,819				36,140				106,633				103,451
	Cost of sales			133,757				141,093				406,335				417,835
	General and administrative (2)			12,617				13,314				38,725				39,441
	Depreciation and amortization			10,060				11,044				28,726				32,475
	Pre-opening costs			243				1,085				1,944				3,712
	Store closure costs			185				-				185				839
	Total costs and expenses			156,862				166,536				475,915				494,302
	Operating income			7,977				7,422				20,924				21,001
	Interest expense, net			(166	)			(447	)			(663	)			(769	)
	Income before income tax provision			7,811				6,975				20,261				20,232
	Income tax provision			2,020				2,015				5,780				6,257
	Net income		$	5,791			$	4,960			$	14,481			$	13,975
	Net income per common share:
	Basic		$	0.24			$	0.20			$	0.60			$	0.55
	Diluted		$	0.24			$	0.20			$	0.60			$	0.54
	Shares used in computing net income per common share (in thousands):
	Basic			24,123				24,603				24,029				25,572
	Diluted			24,286				24,679				24,098				25,660
	Operating Data:
	Locations open at end of period			255				249				255				249
	Company-owned full service restaurants open at
	end of period			197				194				197				194
	Average weekly company-owned full service
	restaurant sales		$	60,945			$	66,718			$	62,141			$	66,998
	18-month comparable company-owned
	full service restaurant sales decrease			-8.0	%			-2.4	%			-6.9	%			-0.2	%

(1)		Labor expense for the three and nine months ended September 27, 2009 includes approximately $0.1 million and $0.4 million of stock-based compensation, respectively, compared to $0.2 million and $0.6 million in the three and nine months ended September 28, 2008, respectively.
(2)		General and administrative expense for the three and nine months ended September 27, 2009 includes approximately $1.5 million and $4.7 million of stock-based compensation, respectively, compared to $1.6 million and $4.6 million in the three and nine months ended September 28, 2008,respectively.

			Quarter Ended						Nine Months Ended
			September 27,			September 28,			September 27,			September 28,
			2009			2008			2009			2008
	Statement of Income Percentages (1):
	Revenues:
	Restaurant sales		97.8	%		98.2	%		98.2	%		98.5	%
	Royalties from Kraft licensing agreement		1.5	%		1.1	%		1.1	%		0.8	%
	Domestic franchise revenues		0.4	%		0.4	%		0.4	%		0.4	%
	International franchise revenues		0.3	%		0.3	%		0.3	%		0.3	%
	Total revenues		100.0	%		100.0	%		100.0	%		100.0	%
	Costs and expenses:
	Food, beverage and paper supplies		23.0	%		24.8	%		23.6	%		24.7	%
	Labor (2)		37.8	%		36.6	%		37.8	%		37.2	%
	Direct operating and occupancy		22.2	%		21.2	%		21.9	%		20.4	%
	Cost of sales		83.0	%		82.6	%		83.3	%		82.4	%
	General and administrative (3)		7.7	%		7.7	%		7.8	%		7.7	%
	Depreciation and amortization		6.1	%		6.3	%		5.8	%		6.3	%
	Pre-opening costs		0.1	%		0.6	%		0.4	%		0.7	%
	Store closure costs		0.1	%		0.0	%		0.0	%		0.2	%
	Total costs and expenses		95.2	%		95.7	%		95.8	%		95.9	%
	Operating income		4.8	%		4.3	%		4.2	%		4.1	%
	Interest expense, net		-0.1	%		-0.3	%		-0.1	%		-0.2	%
	Income before income tax provision		4.7	%		4.0	%		4.1	%		3.9	%
	Income tax provision		1.2	%		1.1	%		1.2	%		1.2	%
	Net income		3.5	%		2.9	%		2.9	%		2.7	%

(1)		Percentages are expressed as a percentage of total revenues, except for cost of sales which is expressed as a percentage of restaurant sales.
(2)		Labor percentage includes approximately 10 basis points attributable to stock-based compensation in both the three and nine months ended September 27, 2009 and the three and nine months ended September 28, 2008.
(3)		General and administrative percentage includes approximately 90 basis points attributable to stock-based compensation in the three and nine months ended September 27, 2009 and the three and nine months ended September 28, 2008.

	Selected Consolidated Balance Sheet Information
	(Dollars in thousands)
	Selected Consolidated Balance		September 27,			December 28,
	Sheet Information		2009			2008
	Cash and cash equivalents		$	14,345		$	14,392
	Total assets			351,486			368,413
	Total debt			37,000			74,000
	Stockholders' equity			197,466			174,532

	California Pizza Kitchen, Inc.
	Units Summary
				Total Units at								Total Units at
	Third Quarter 2009			June 28, 2009		Opened		Acquired		Closed		September 27, 2009
	Company-owned full service domestic			197		1		-		1		197
	Company-owned ASAP domestic			9		-		-		-		9
	Company-owned LA Food Show			2		-		-		-		2
	Franchised domestic			18		1		-		1		18
	Franchised international			27		-		-		-		27
	Sports and entertainment venues			2		-		-		-		2
	Total			255		2		-		2		255

California Pizza Kitchen
Media: Sarah Grover
Investors: Sue Collyns
310-342-5000