California Pizza Kitchen Announces Financial Results for the Fourth Quarter and Fiscal Year 2009

California Pizza Kitchen, Inc. (Nasdaq: CPKI) reported revenues and net income for the fourth quarter and the fiscal year 2009 ending January 3, 2010.

Highlights for the 14-week fourth quarter of 2009 relative to the 13-week fourth quarter of 2008 were as follows:

* Total revenues increased 3.8% to $167.8 million

* Full service comparable restaurant sales decreased 5.8%

* Net loss of $9.9 million, or negative $0.41 per diluted share, including the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits.

* Net income of $4.1 million, or $0.17 per diluted share, excluding the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits (please refer to the reconciliation table).

Highlights for the 53-week fiscal year 2009 relative to the 52-week fiscal year 2008 were as follows:

* Total revenues decreased 1.8% to $664.7 million

* Full service comparable restaurant sales decreased 6.6%

* Net income of $4.6 million, or $0.19 per diluted share, including the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits.

* Net income of $18.6 million, or $0.77 per diluted share, excluding the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits (please refer to reconciliation table).

Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, “Despite sales challenges for new restaurants in the high unemployment states of California, Michigan and Florida, we were very pleased that our fourth quarter comparable sales and proforma earnings results were within our previously guided ranges. While the quarter benefited from easier comparisons, the year-over-year and sequential quarter improvements mark what we believe may be the first signs of a comp turnaround. Comparable sales improvements were widespread across our dine-in, take-out, and delivery channels, and we credit the turnaround to the successful launch of our wine, call center, and catering programs along with November’s new menu rollout. Looking towards 2010, we are cautiously optimistic that these programs and other new revenue initiatives such as our ‘Small Cravings Menu’ will continue to drive guest traffic and comparable sales.”

Rosenfield and Flax continued, “We were very proud to have been ranked the #1 ‘Most Recommended Casual Dining Chain’ in a recent independent marketing survey. This type of recognition adds to our confidence for future growth, not only with full service restaurants, but with our Kraft partnership, international and domestic franchising, and licensing. These businesses provide CPK with a unique model within the casual dining industry and the ability to balance our portfolio with higher margin revenue streams positions us to maximize financial performance and build shareholder value over time.”

Average weekly sales for the Company's 196 full service restaurants were $57,949 in the fourth quarter of 2009 compared to $61,034 in the same quarter last year.

During the fourth quarter of 2009, one of the Company's franchise partners opened the first California Pizza Kitchen in Cancun, which is the seventh location in Mexico.

The Company outlined its financial guidance for the first quarter of 2010 based on the following assumptions:

* Comparable restaurant sales between negative 3.0% and negative 4.0%

* Opening one international franchised full service restaurant

* Opening one domestic franchised restaurant

* Earnings estimated in the range of $0.05-$0.07 per diluted share

Additionally, the Company outlined guidance for fiscal 2010 based on the following assumptions:

* Comparable restaurant sales between negative 2% and 0%

* Opening eight new full service restaurants

* Opening eight international franchised full service restaurants

* Opening five domestic franchised restaurants

* Earnings estimated in the range of $0.68-$0.73 per diluted share


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