Industry News | April 9, 2007

Calif. Pizza Kitchen Releases 1Q Results

California Pizza Kitchen, Inc. announced today that revenues increased 15.2 percent to $149.4 million for the first quarter ended April 1, 2007 versus $129.7 million in the first quarter of 2006. Comparable restaurant sales increased approximately 4.7 percent compared to 6.4 percent in the first quarter a year ago. The company estimates that unfavorable weather during the period negatively impacted comparable restaurant sales by 0.4 percent and resulted in approximately $300,000 in lost revenues.

For the period, the company incurred $600,000, or $0.02 per diluted share, of additional compensation expense related to accelerated restricted stock vesting. This relates to 10,000 shares of restricted stock granted to each of the Company's co-Chief Executive Officers pursuant to the terms of their April 2005 employment agreements. The additional compensation expense was triggered in the first quarter by the company's stock price maintaining a $35.00 average for 30 days.

During its February 15, 2007 conference call, the company forecasted a comparable restaurant sales increase of 3.0 percent to 4.0 percent and first quarter 2007 earnings in the range of $0.17-$0.19 per diluted share. Based on first quarter 2007 revenues and comparable restaurant sales results, management now expects earnings of $0.19-$0.20 per diluted share excluding additional compensation expense related to accelerated restricted stock vesting and between $0.17-$0.18 per diluted share including the additional compensation expense.

In the first quarter of 2007, the company added two new full-service restaurants in Austin, Texas and San Francisco as well as two CPK/ASAP restaurants in Anaheim, California and Kailua, Hawaii. The company's franchise partner, WDI Corporation, also opened its second full-service restaurant in Japan.

The company intends to release its first quarter earnings on May 10 at 4:00 pm ET with a conference call to follow on the same day at approximately 5:00 pm ET. A webcast of the conference call can be accessed at

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