California Pizza Kitchen Announces Financial Results for the Third Quarter 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

SOURCE: California Pizza Kitchen, Inc.

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