California Pizza Kitchen Reports Record Financial Results For The Second Quarter Ending June 30, 2002

Business Wire, July 23, 2002

Business Editors

LOS ANGELES--(BUSINESS WIRE)--July 23, 2002

California Pizza Kitchen, Inc., (Nasdaq:CPKI) today reported revenues and earnings for the second quarter and six months ended June 30, 2002. Highlights for the second quarter of 2002 relative to the same quarter last year were as follows:

-- Total revenues up 25% to $75.6 million

-- Comparable restaurant sales up 5.1%

-- Operating income before pre-opening expenses up 28% to $7.3 million

-- Net income up 31% to $4.3 million

-- Diluted net income per share up 28% to $0.23, compared to diluted net income per share of $0.18

"We are extremely pleased with our second quarter results," said Fred Hipp, President and CEO of California Pizza Kitchen. "The 5.1% increase in comparable restaurant sales is testament to our solid customer loyalty, brand strength and a consistent commitment to operational excellence. The latter point is illustrated tangibly by this quarter's improvement in restaurant level cash flow margins which jumped by 50 basis points to 19.9%. Not only is this our best margin in six consecutive quarters, but it demonstrates our consistent ability to leverage overhead and improve net operating margins in a difficult economy."

Average weekly sales for the Company's full service restaurants was $56,631 for the second quarter of 2002 compared to $55,029 for the same quarter last year.

During the second quarter the Company opened four new restaurants in Detroit, MI; Louisville, KY; Seattle, WA and Wayne, NJ. The Company plans to open a minimum of 10 additional restaurants for a total of at least 17 new restaurants in 2002. Six of these new restaurants will open in the third quarter, one of which opened earlier today in Minneapolis, MN. The remaining five restaurants for the third quarter (Chicago, IL; Raleigh, NC; St Louis, MO; Orlando, FL and Fresno, CA) are scheduled to open in August and September. The four restaurants expected to open in the last quarter are currently under construction and there is a possibility that one to two additional new restaurants may open before the end of the fiscal year.

Based on the new unit development and current economic conditions, the Company anticipates diluted earnings per share for the third quarter of $0.21 to $0.23. Implicit in this forecast is comparable restaurant sales of 3.5% to 4.5%.

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 pastas, salads, soups, and sandwiches. The average guest check is approximately $11.30. The chain operates, licenses or franchises 138 restaurants of which 107 are company-owned and 31 operate under franchise or license agreements. The Company also has a strategic alliance with Kraft Pizza Company to manufacture and distribute a line of California Pizza Kitchen premium frozen pizzas.

California Pizza Kitchen can be found on the World Wide Web 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 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      Six Months Ended
                              June 30,  July 1,   June 30,   July 1,
                                2002     2001       2002       2001
                              ----------------------------------------
Statement of Income
Revenues :
   Restaurant sales           $74,916  $59,487     $144,457 $115,863
   Franchise and other
    revenues                      710      842        1,385    1,493
                              ----------------------------------------
     Total revenues            75,626   60,329      145,842  117,356

Costs and expenses :
   Cost of sales               17,913   14,692       35,004   28,489
   Labor                       27,137   21,473       52,257   41,772
   Direct operating and
    occupancy                  14,952   11,798       28,968   23,055
                              ----------------------------------------
     Total restaurant
      operating costs          60,002   47,963      116,229   93,316


   General and administrative   4,648    3,826        8,975    7,495
   Depreciation and
    amortization                3,693    2,873        7,160    5,613
   Pre-opening                    688      721        1,217    1,113
                              ----------------------------------------
Operating income                6,595    4,946       12,261    9,819

Other income :
   Interest income                 88      170          170      389
   Interest expense                --       --           --       (3)
                              ----------------------------------------
     Total other income            88      170          170      386
                              ----------------------------------------

Income before income tax
 provision                      6,683    5,116       12,431   10,205
Income tax provision           (2,339)  (1,791)      (4,351)  (3,572)
                              ----------------------------------------
Net income                     $4,344   $3,325       $8,080   $6,633
                              ========================================
Net income per common share :
   Basic                        $0.23    $0.18        $0.44    $0.36
   Diluted                      $0.23    $0.18        $0.43    $0.36

Shares used in computing net
 income per common share
 (in thousands)
   Basic                       18,537   18,291       18,517   18,215
   Diluted                     18,856   18,628       18,816   18,604


Selected Operating Data
System-wide restaurants open
 at end of period                 137      120          137      120
Company-owned restaurants
 open at end of period            106       89          106       89
Average weekly company-owned
 full service restaurant
 sales                        $56,631  $55,029      $55,545  $54,522
Comparable company-owned
 restaurant sales increase       5.1%     3.3%         4.0%     4.7%


                                     Quarter Ended   Six Months Ended
                                   June 30,  July 1,  June 30, July 1,
                                      2002    2001      2002    2001
                                     --------------------------------
Statement of Income Percentages (1)
Revenues :
   Restaurant sales                   99.1%   98.6%     99.1%    98.7%
   Franchise and other revenues        0.9     1.4       0.9      1.3
                                     --------------------------------
     Total revenues                  100.0   100.0     100.0    100.0

Costs and expenses :
   Cost of sales                      23.9    24.7      24.2     24.6
   Labor                              36.2    36.1      36.2     36.1
   Direct operating and occupancy     20.0    19.8      20.1     19.9
                                     --------------------------------
     Total restaurant
      operating costs                 80.1    80.6      80.5     80.5

   General and administrative          6.1     6.3       6.2      6.4
   Depreciation and amortization       4.9     4.8       4.9      4.8
   Pre-opening                         0.9     1.2       0.8      0.9
                                     --------------------------------

Operating income                       8.7     8.2       8.4      8.4

Other income :
   Interest income                     0.1     0.3       0.1      0.3
   Interest expense                     --      --        --       --
                                     --------------------------------
     Total other income                0.1     0.3       0.1      0.3
                                     --------------------------------

Income before income tax provision     8.8     8.5       8.5      8.7
Income tax provision                  (3.1)   (3.0)     (3.0)    (3.0)
                                     --------------------------------
Net income                             5.7%    5.5%      5.5%     5.7%
                                     ================================


            Selected Consolidated Balance Sheet Information
                        (Dollars in thousands)

Selected Balance Sheet Information         June 30,      December 30,
                                             2002          2001
                                          ------------ -------------

Cash and cash equivalents                 $  21,370    $  19,788
Total assets                                155,618      145,335
Total debt, including current portion            --           --
Shareholders' equity                        123,603      114,106

(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.