California Pizza Kitchen Announces Financial Results for the First Qua

California Pizza Kitchen Announces Financial Results for the First Quarter Ended April 3, 2005; Increases Earnings per Fully Diluted Share Guidance for 2005 to $1.13 to $1.15

    Business Editors

    LOS ANGELES--(BUSINESS WIRE)--April 28, 2005--California Pizza Kitchen, Inc. (Nasdaq:CPKI) today reported revenues and earnings for the first quarter ended April 3, 2005. Highlights for the first quarter of 2005 relative to the same quarter last year were as follows:

--	Total revenues grew 11.9% to $110.3 million
--	Comparable store sales increased 9.3%
--	Net income of $4.3 million, or $0.22 per fully diluted share, compared to net income of $4.2 million, or $0.22 per fully diluted share

    Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, "We are pleased with our results for the first quarter which are a by-product of a transition that is still underway, but one we believe has a sturdy foundation. Our menu innovation, focus on operational excellence and new restaurant performance are central to our strategic framework which stresses discipline, accountability and quality in everything we do. As we enter the second phase of our transition, we'll continue to build on this foundation and focus on leveraging our brand and balance sheet to position stockholders for significant long-term value."
    First quarter average weekly sales for the Company's 141 full service restaurants increased 9.8% to $60,382 compared to $54,982 in the same quarter last year. Average weekly sales for the three months ended April 3, 2005 for the restaurants in the Classes of 2002, 2003 and 2004 increased by 10.7%, 5.3% and 3.6%, respectively, while average weekly sales for the five restaurants in the Class of 2005 were $88,865.
    Rosenfield and Flax continued, "The overall results in our Class of 2002 and positive comparable sales turnaround in our Class of 2003 were particularly gratifying during the first quarter. As we move forward, our goal will be to continue momentum in these restaurants, which in addition to our growth initiatives, will allow us to deliver sustainable margin leverage." Rosenfield and Flax concluded, "In addition, although we are in the early stages of analyzing the financial performance of our 2004 and 2005 Classes, these restaurants are showing all the day-part and mix characteristics we had hoped for which is very promising."
    During the first quarter of 2005, the Company opened five new restaurants in Monterey, CA; Bakersfield, CA; Warrenville, IL; Huntington Beach, CA and Charlotte, NC.
    For the second quarter of 2005, the Company expects to add three new restaurants. These activities, together with anticipated comparable store sales growth of 5.0% to 6.0%, are expected to result in earnings per fully diluted share in the range of $0.26 to $0.28. The Company also increased guidance for the full year of 2005 to $1.13 to $1.15.
    California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain in the premium pizza segment. 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 appetizers, pastas, salads, soups and sandwiches. The average guest check is approximately $12.39. The chain operates, licenses or franchises 176 restaurants as of April 28, 2005, of which 146 are company-owned and 30 operate under franchise or license agreements. The Company also owns the LA Food Show concept which operates one location in Manhattan Beach, California. California Pizza Kitchen also has a licensing arrangement with Kraft Pizza Company which manufactures and distributes a line of California Pizza Kitchen premium frozen pizzas.
    California Pizza Kitchen, Inc. can be found on the internet at www.cpk.com.

    This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Our actual results may 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 the execution of our expansion strategy, the continued availability of qualified employees, the maintenance of reasonable food and supply costs and numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. California Pizza Kitchen, Inc. 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)

April 3, March 28, 2005 2004 -------------- ------------ (restated) Statement of Income: Revenues: Restaurant sales $109,418 $97,753 Franchise and other revenues 900 877 -------------- ------------ Total revenues 110,318 98,630

Costs and expenses: Cost of sales 26,957 23,986 Labor 41,115 36,462 Direct operating and occupancy 21,976 19,755 -------------- ------------ Total restaurant operating costs 90,048 80,203

General and administrative 7,509 6,724 Depreciation and amortization 5,552 5,464 Pre-opening costs 1,101 64 Loss on impairment of property and equipment 26 -

-------------- ------------ Operating income 6,082 6,175

Other income (expense): Interest income 195 96 Equity in net loss of unconsolidated joint venture (21) (37) -------------- ------------ Total other income (expense) 174 59 -------------- ------------

Income before income tax provision 6,256 6,234 Income tax provision (benefit) 1,985 2,018 -------------- ------------ Net income $4,271 $4,216 ============== ============ Net income per common share: Basic $0.22 $0.22 Diluted $0.22 $0.22

Shares used in computing net income per common share (in thousands):

Basic 19,280 18,993 Diluted 19,596 19,081

Operating Data: Restaurants open at end of period 175 168 Company-owned restaurants open at end of period 145 139 Average weekly company-owned full service restaurant sales $60,382 $54,982 18 month comparable company-owned restaurant sales increase 9.3% 7.2%

April 3, March 28, 2005 2004 ----------- ---------- (restated) Statement of Income Percentages (1): Revenues: Restaurant sales 99.2% 99.1% Franchise and other revenues 0.8% 0.9% ----------- ---------- Total revenues 100.0% 100.0%

Costs and expenses: Cost of sales 24.6% 24.5% Labor 37.6% 37.3% Direct operating and occupancy 20.1% 20.2% ----------- ---------- Total restaurant operating costs 82.3% 82.0%

General and administrative 6.8% 6.8% Depreciation and amortization 5.0% 5.5% Pre-opening costs 1.0% 0.1% Loss on impairment of property and equipment 0.0% 0.0%

----------- ---------- Operating income 5.5% 6.3%

Other income (expense): Interest income 0.2% 0.1% Equity in net loss of unconsolidated joint venture 0.0% 0.0% ----------- ---------- Total other income (expense) 0.2% 0.1% ----------- ----------

Income before income tax provision 5.7% 6.3% Income tax provision (benefit) 1.8% 2.0% ----------- ---------- Net income 3.9% 4.3% =========== ==========

(1) Percentages are expressed as a percentage of total revenues, except for restaurant costs and expenses, which are expressed as a percentage of restaurant sales.

Selected Consolidated Balance Sheet Information (Dollars in thousands)

Selected Consolidated Balance Sheet Information April 3, January 2, 2005 2005 ---------------------

Cash and cash equivalents $14,068 $17,719 Marketable securities 26,415 26,415 Total assets 252,108 241,804 Shareholders' equity 172,589 167,035

California Pizza Kitchen, Inc. Units Summary

Total Units at Total Units at -------------- -------------- First Quarter 2005 Jan. 2, 2005 Opened Closed April 3, 2005 ---------------------------------------------- ------- -------------- Company owned full service domestic 137 5 1(a) 141 Company owned ASAP domestic 4 4 Franchised domestic 20 - - 20 Franchised international 10 - - 10 ------------------ ----------------------- Total 171 5 1 175 ------------------ -----------------------

(a) Store closed end of business day on January 2, 2005.

To aid in a full understanding of our performance, we provide full service restaurant class operating data for the 94 stores opened prior to 2002 (Pre-2002), the 18 stores opened in 2002 (Class of 2002), the 20 stores opened in 2003 (Class of 2003), the four stores opened in 2004 (Class of 2004) and the five stores opened in 2005 (Class of 2005).

California Pizza Kitchen, Inc. Supplemental Information

Weekly Restaurant Restaurant Restaurant Sales Sales Operating Operating First Quarter 2005 # of Average Margin (1) Margin % Stores (,000) (,000) (2) ---------------------------- ------- ---------- ---------- ----------

Pre-2002 Q1, 2005 94 65,872 79,789 15,730 19.7% Q1, 2004 94 60,413 73,825 14,983 20.3% Year over year change 9.0% 8.1% 5.0% (60) bps Q4, 2004 94 63,917 83,741 18,255 21.8%

Class of 2002 Q1, 2005 18 51,582 12,070 1,935 16.0% Q1, 2004 18 46,584 10,901 1,511 13.9% Year over year change 10.7% 10.7% 28.1% 210 bps Q4, 2004 18 52,060 13,119 2,227 17.0%

Class of 2003 Q1, 2005 20 40,909 10,636 1,147 10.8% Q1, 2004 22 38,851 11,111 876 7.9% Year over year change 5.3% -4.3% 30.9% 290 bps Q4, 2004 22 40,801 12,555 1,639 13.1%

Class of 2004 Q1, 2005 4 52,408 2,725 254 9.3% Q1, 2004 1 50,574 657 109 16.6% Year over year change 3.6% 314.8% 133.0% (730) bps Q4, 2004 4 57,885 2,911 404 13.9%

Class of 2005 Q1, 2005 5 88,865 2,768 198 7.2%

Total full service Q1, 2005 141 60,382 107,989 19,265 17.8% Q1, 2004 135 54,982 96,494 17,480 18.1% Year over year change 9.8% 11.9% 10.2% (30) bps Q4, 2004 138 58,499 112,326 22,526 20.1% ----------------------

(1) Restaurant operating margin is defined as restaurant sales less restaurant operating costs.

(2) Restaurant operating margin percentages are expressed as a percentage of restaurant sales.

--30--RJ/la*

CONTACT: California Pizza Kitchen Sarah Grover (media) or Sue Collyns (investors) 310-342-5000

KEYWORD: CALIFORNIA ILLINOIS NORTH CAROLINA INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD RESTAURANTS FOODS/BEVERAGES RETAIL EARNINGS SOURCE: California Pizza Kitchen, Inc.

Copyright Business Wire 2005