California Pizza Kitchen (SPREADSHEET)

Title

This spreadsheet supports STUDENT analysis of the case, "California Pizza Kitchen" (Case 33)

March 31, 2008 Copyright (C) 2008, by the University of Virginia Darden School Foundation.

Exh. 2

Exhibit 2California Pizza Kitchen, Inc.Consolidated Balance Sheet (in thousands)

As of 1/1/0612/31/067/1/07AssetsCurrent assetsCash and cash equivalents$11,272$8,187$7,178Investments in marketable securities11,408Other receivables4,1097,87610,709Inventories3,7764,7454,596Current deferred tax asset, net8,43711,72111,834Prepaid income tax1,4288,769Other prepaid expenses & other current assets5,4925,3886,444Total current assets45,92237,91749,530

Property and equipment, net213,408255,382271,867Noncurrent deferred tax asset, net4,5135,8676,328Goodwill and other intangibles5,9675,8255,754Other assets4,4445,5226,300Total assets$274,254$310,513$339,779

Liabilities and Shareholders' EquityCurrent liabilitiesAccounts payable$7,054$15,044$14,115Accrued compensation and benefits13,06815,04215,572Accrued rent13,25314,53214,979Deferred rent credits4,0564,4945,135Other accrued liabilities9,29413,27513,980Accrued income tax3,6149,012Total current liabilities46,72566,00172,793

Other liabilities5,3838,6838,662Deferred rent credits, net of current portion24,81027,48632,436

Shareholders' equity:Common stock197193291Additional paid-in-capital231,159221,163228,647Accumulated deficit(34,013)(13,013)(3,050)Accumulated comprehensive loss(7)Total shareholders' equity197,336208,343225,888

Total liabilities & Shareholders' Equity$274,254$310,513$339,779

Sources of data: Company Annual and Quarterly Reports.

Exh. 3

Exhibit 3California Pizza Kitchen, Inc.Consolidated Income Statements (in thousands, except per-share data)

Fiscal Year(1)Three Months Ended20032004200520067/2/067/1/07

Restaurant sales$356,260$418,799$474,738$547,968$134,604$156,592Franchise and other revenues3,6273,6534,8616,6331,5641,989Total revenues359,887422,452479,599554,601136,168158,581

Food, beverage and paper supplies87,806103,813118,480135,84833,09038,426Labor129,702152,949173,751199,74449,27256,912Direct operating and occupancy70,27383,05492,827108,55826,21430,773Cost of Sales287,781339,816385,058444,150108,576126,111

General and administrative21,48828,79436,29843,32011,03512,206Depreciation and amortization20,71423,97525,44029,4897,0709,022Pre-opening costs4,1477374,0516,964800852Severance charges(2)1,221Loss on impairment of PP&E18,9841,160Store closure costs2,700152707768Legal settlement reserve1,333600Operating income5,55225,09726,84029,9718,6879,622

Interest income31757173971828791Other income1,105Equity in loss of unconsolidated JV(349)(143)(22)Total other income (expense)(32)4281,82271828791

Income before income tax provision5,52025,52528,66230,6898,9749,713Income tax provision (benefit)(82)7,7099,1729,6892,9613,393Net income$5,602$17,816$19,490$21,000$6,013$6,320

Net income per common share: Basic$0.30$0.93$1.01$1.08$0.20$0.22 Diluted$0.29$0.92$0.99$1.06$0.20$0.21

Selected Operating Data:Restaurants open at end of period168171188205193213Company-owned open at end of period(3)137141157176162182Avg weekly full service rest. sales(3)$54,896$57,509$62,383$65,406$65,427$68,53518-mo. comparable rest. sales growth(3)3.4%8.0%7.5%5.9%4.8%5.4%

Notes:(1) For the Years Ended December 31, 2006, January 1, 2006 and January 2, 2005, December 28, 2003.(2) Severance charges represent payments to former President/CEO and former SVP/Senior Development Officer under terms of their separation agreements.(3) Data for company-owned restaurants.

Sources of data: Company Annual and Quarterly Reports and quarterly company earnings conference calls.

Exh. 4

Exhibit 4California Pizza Kitchen, Inc.Selected Historical Comparable Store Sales (Calendarized)

CY06CY07CY03CY04CY05Q1Q2Q3Q4Q1

California Pizza Kitchen3.4%9.3%6.4%4.8%5.9%5.6%6.9%4.7%

Applebee's International, Inc.4.1%4.8%1.8%2.6%-1.8%-2.3%-1.1%-4.0%BJ's Restaurants, Inc.3.3%4.0%4.6%6.8%5.9%5.3%5.5%6.9%Brinker International(1)2.1%1.9%3.2%2.7%-2.0%-2.1%-2.1%-4.4%The Cheesecake Factory, Inc.0.7%3.9%1.7%-1.3%-0.8%-1.6%0.8%0.4%Chipotle Mexican Grill, Inc.24.4%13.3%10.2%19.7%14.5%11.6%10.1%8.3%Darden Restaurants, Inc. -- Red Lobster0.0%-3.9%4.2%1.6%9.4%-2.1%0.7%4.6%Darden Restaurants, Inc. -- Olive Garden2.2%4.7%8.6%5.7%2.5%2.9%2.9%1.0%McCormick & Schmick's Seafood Restaurants, Inc.1.1%3.8%3.0%4.1%2.8%2.9%2.0%2.8%Panera Bread Company0.2%2.7%7.8%9.0%3.2%2.8%2.0%0.0%P.F. Chang's China Bistro5.1%3.0%1.2%1.3%-1.0%-0.5%-0.9%-2.5%RARE -- Longhorn Steakhouse4.6%5.0%2.8%3.7%-0.4%-0.3%1.5%-1.0%Red Robin Gourmet Burgers4.1%7.5%3.8%4.8%3.3%0.8%0.2%-0.5%Ruth's Chris Steak House, Inc.1.4%11.6%10.4%6.8%6.0%4.3%7.4%1.9%Sonic Corporation1.6%7.0%5.4%5.5%4.3%4.0%3.4%2.0%Texas Roadhouse, Inc.3.5%7.6%5.6%6.4%1.2%2.3%3.3%0.9%

Note:(1) Brinker's comparable store sales is a blended rate for its various brands.

Source of data: KeyBanc Capital Markets equity research.

Exh. 5

Exhibit 5California Pizza Kitchen, Inc.Selected Forecasts for California Pizza Kitchen

Date ofPrice2007E2008E2009EFirmReportTargetRevenuesEPSRevenuesEPSRevenuesEPS

Oppenheimer and Co. Inc.4/9/07$40$652.9$1.33NANANANACIBC World Markets4/12/0737647.51.29755.11.57NANAKeyBanc Capital Markets5/11/07NANA1.28NA1.55NANARBC Capital Markets5/11/0737650.71.31753.11.59878.21.90Morgan Keegan & Co., Inc.5/11/07NA644.21.33742.11.58NANAMKM Partners5/11/0739647.51.34754.31.69NANA

Source of data: Selected firms' equity research.

Exh. 6

Exhibit 6DateCPKS&P SmallCap 600 RestaurantsCalifornia Pizza Kitchen, Inc.3-Jul-06100100Stock Price Comparison5-Jul-0699996-Jul-0697987-Jul-06969710-Jul-061019811-Jul-061009712-Jul-061039513-Jul-06989214-Jul-06979217-Jul-06989218-Jul-06969219-Jul-06999420-Jul-06949121-Jul-06959024-Jul-06979325-Jul-06989526-Jul-06969227-Jul-06959028-Jul-06959131-Jul-0697911-Aug-0694902-Aug-0693913-Aug-0695924-Aug-0695937-Aug-0696928-Aug-06100929-Aug-06959010-Aug-06989111-Aug-06979214-Aug-06999415-Aug-061029616-Aug-061059817-Aug-061059918-Aug-0610599Note:21-Aug-0610298Adjusted for the June 2007 50% stock dividend. With such a dividend, an owner of two shares of CPK stock was given an additional share. 22-Aug-0610198The effect was to increase CPK shares by a third yet maintain the overall capitalization of the equity. 23-Aug-06999724-Aug-069997Sources of data: Yahoo! Finance and Datastream.25-Aug-06979628-Aug-061009729-Aug-061029930-Aug-0610410031-Aug-06104991-Sep-061061005-Sep-061061016-Sep-06103997-Sep-06102998-Sep-0610410011-Sep-0610410112-Sep-0610910413-Sep-0610910514-Sep-0610910515-Sep-0611010618-Sep-0610810519-Sep-0610910520-Sep-0611210721-Sep-0611010622-Sep-0610910525-Sep-0610910626-Sep-0610910627-Sep-0611110628-Sep-0611110529-Sep-061091042-Oct-061101043-Oct-061111044-Oct-061171095-Oct-061181096-Oct-061171099-Oct-0611810910-Oct-0611710811-Oct-0611510712-Oct-0612011013-Oct-0612011116-Oct-0612111217-Oct-0612011118-Oct-0612011119-Oct-0611911020-Oct-0611810923-Oct-0611911024-Oct-0612011125-Oct-0612011126-Oct-0612011227-Oct-0611811030-Oct-0612011131-Oct-061181101-Nov-061161092-Nov-061151093-Nov-061121066-Nov-061181087-Nov-061181088-Nov-061191099-Nov-0611610710-Nov-0611410813-Nov-0611110814-Nov-0611211015-Nov-0611211116-Nov-0611111217-Nov-0611211120-Nov-0611311121-Nov-0611311122-Nov-0611311124-Nov-0611211127-Nov-0610810828-Nov-0611210829-Nov-0611610930-Nov-061151091-Dec-061151084-Dec-061181115-Dec-061161116-Dec-061161107-Dec-061181108-Dec-0611811011-Dec-0611911012-Dec-0611910913-Dec-0612010914-Dec-0612010915-Dec-0611910918-Dec-0611910819-Dec-0611810820-Dec-0611810921-Dec-0611710922-Dec-0611710926-Dec-0612011027-Dec-0612211128-Dec-0612211129-Dec-061221103-Jan-071231104-Jan-071241105-Jan-071221088-Jan-071231089-Jan-0712410910-Jan-0712611011-Jan-0713111212-Jan-0713411216-Jan-0713311217-Jan-0713211118-Jan-0713011019-Jan-0712911022-Jan-0712910923-Jan-0712911024-Jan-0713011125-Jan-0712910926-Jan-0713010829-Jan-0713010830-Jan-0713110931-Jan-071301111-Feb-071311122-Feb-071321125-Feb-071311116-Feb-071311117-Feb-071301128-Feb-071311129-Feb-0713011112-Feb-0712911113-Feb-0713011214-Feb-0712911315-Feb-0712911316-Feb-0712011320-Feb-0712011521-Feb-0712311722-Feb-0712211723-Feb-0712211826-Feb-0712111627-Feb-0711611228-Feb-071171131-Mar-071171132-Mar-071161115-Mar-071141096-Mar-071181117-Mar-071181118-Mar-071171119-Mar-0711711212-Mar-0711711213-Mar-0711711014-Mar-0711811115-Mar-0711711116-Mar-0711511019-Mar-0711711120-Mar-0711711121-Mar-0711611322-Mar-0711511323-Mar-0711511326-Mar-0711811227-Mar-0711711228-Mar-0711711129-Mar-0711811130-Mar-071201122-Apr-071201123-Apr-071221144-Apr-071201135-Apr-071211139-Apr-0712111310-Apr-0711911311-Apr-0711711212-Apr-0711911213-Apr-0712011216-Apr-0712211417-Apr-0712111418-Apr-0712111319-Apr-0712211220-Apr-0712411423-Apr-0712511324-Apr-0712111325-Apr-0712111426-Apr-0712211427-Apr-0712411330-Apr-071221101-May-071241112-May-071261123-May-071251124-May-071231127-May-071251138-May-071241139-May-0712611310-May-0712511111-May-0713511314-May-0713211215-May-0713011116-May-0713011217-May-0712811118-May-0712911221-May-0713411322-May-0713311323-May-0713211324-May-0713311225-May-0713311329-May-0713311330-May-0713311331-May-071341131-Jun-071351144-Jun-071351155-Jun-071341146-Jun-071321117-Jun-071261098-Jun-0712811011-Jun-0712610912-Jun-0712410813-Jun-0712410914-Jun-0712411015-Jun-0712511018-Jun-0712411019-Jun-0712310920-Jun-0712110821-Jun-0711810522-Jun-0711710425-Jun-0711510426-Jun-0711510427-Jun-0711710628-Jun-0711710529-Jun-071181042-Jul-07121105

Exh. 7

Exhibit 7California Pizza Kitchen, Inc.Comparative Restaurant Financial Data, 2006 Fiscal Year (in millions, except per-share data)

Fiscal Year End7/2/07EBITDANet ProfitEarnings DividendsBook ValueMonthShare PriceRevenueMarginMarginPer SharePer SharePer ShareBeta

California Pizza KitchenDec.$22.10$55510.7%3.8%$0.71$0.00$7.200.85

Applebee's International, Inc.Dec.24.281,33815.9%6.5%1.170.206.490.80BJ's Restaurants, Inc.Dec.20.052399.6%4.1%0.410.007.781.05Brinker International(1)June29.374,15112.0%4.7%1.490.208.590.90Buffalo Wild Wings, IncorporatedDec.41.7827813.3%5.8%0.930.006.611.10The Cheesecake Factory, Inc.Dec.24.571,31512.2%6.2%1.020.009.091.00Chipotle Mexican Grill, Inc.Dec.86.0082313.0%5.0%1.280.0014.56NADarden Restaurants, Inc.(2)May44.145,72113.2%5.9%2.160.408.371.00Frisch's Restaurants, Inc.May30.5429131.6%3.1%1.780.4419.840.60McCormick & Schmick's Dec.25.663089.7%4.3%0.920.0011.201.10Panera Bread CompanyDec.46.0282916.3%7.2%1.870.0012.531.25P.F. Chang's China BistroDec.35.3793810.5%3.6%1.240.0011.411.10RARE Hospitality International Inc.(3) Dec.26.7698711.6%5.1%1.450.0011.170.57Red Robin Gourmet BurgersDec.40.1961913.7%4.9%1.820.0014.681.05Ruth's Chris Steak House, Inc.Dec.16.8027215.6%8.7%1.010.002.93NASonic CorporationAug.22.0069324.9%11.4%0.880.004.660.90Texas Roadhouse, Inc.Dec.12.8159712.5%5.7%0.440.004.300.90

CurrentCurrent Total Shr.Debt/InterestT. CapitalReturn OnAssetsLiabilitiesDebtEquityCapitalCoverageTurnoverCapitalEquity

California Pizza Kitchen$38$66$0$2080.0%NMF2.710.1%10.1%

Applebee's International, Inc.10518717548726.5%11.72.014.0%18.0%BJ's Restaurants, Inc.963602030.0%NMF1.24.9%4.9%Brinker International(1)2424975021,07631.8%14.42.613.2%18.0%Buffalo Wild Wings, Incorporated752601160.0%NMF2.414.0%14.0%The Cheesecake Factory, Inc.20316307120.0%NMF1.811.4%11.4%Chipotle Mexican Grill, Inc.1796104740.0%NMF1.78.8%8.7%Darden Restaurants, Inc.(2)3781,0266451,23034.4%10.93.120.6%27.5%Frisch's Restaurants, Inc.12314310130.1%5.92.07.9%9.1%McCormick & Schmick's 304001600.2%NMF1.98.3%8.3%Panera Bread Company12811003980.0%NMF2.115.1%15.1%P.F. Chang's China Bistro65104192906.2%NMF3.011.1%11.5%RARE Hospitality International Inc.(3) 12513416636031.6%29.21.99.8%13.9%Red Robin Gourmet Burgers297011424431.9%7.71.79.3%12.5%Ruth's Chris Steak House, Inc.2659686850.0%12.82.018.6%34.9%Sonic Corporation437815939228.9%15.01.315.3%20.1%Texas Roadhouse, Inc.53783631910.2%19.91.79.7%10.7%

Notes:(1) Brinker's restaurant brands include Chili's Grill & Bar, Romano's Macaroni Grill, On The Border and Maggiano's.(2) Darden's restaurant brands include Red Lobster and The Olive Garden.(3) RARE's restaurant brands include LongHorn Steakhouse, The Capital Grille and Bugaboo Creek Steak House.

Sources of data: Value Line Investment Survey, 2007; Standard & Poor's Stock Report, 2007 and company Annual Reports and websites.

Exh. 8

Exhibit 8California Pizza Kitchen, Inc.Interest Rates and Yields

U.S. Treasury SecuritiesAverageAverageBillsNotes & BondsCorporate bonds (Moody's)PrimeLIBOR3-month6-month3-year10-year30-yearAaa 3BaaLending3-month20005.85%5.92%6.22%6.03%5.94%7.62%8.36%9.23%6.55%20013.45%3.39%4.09%5.02%5.49%7.08%7.95%6.91%3.63%20021.62%1.69%3.10%4.61%......6.49%7.80%4.67%1.79%20031.02%1.06%2.10%4.01%......5.67%6.77%4.12%1.22%20041.38%1.58%2.78%4.27%......5.63%6.39%4.34%1.67%20053.16%3.40%3.93%4.29%......5.24%6.06%6.19%3.63%

2006: Jan.4.20%4.30%4.35%4.42%......5.29%6.24%7.38%4.68% Feb.4.41%4.51%4.64%4.57%4.54%5.35%6.27%7.50%4.82% Mar.4.51%4.61%4.74%4.72%4.73%5.53%6.41%7.63%4.99% Apr.4.59%4.72%4.89%4.99%5.06%5.84%6.68%7.75%5.15% May.4.72%4.81%4.97%5.11%5.20%5.95%6.75%7.88%5.23%June4.79%4.95%5.09%5.11%5.15%5.89%6.78%7.13%5.51%July4.96%5.09%5.07%5.09%5.13%5.85%6.76%8.25%5.49% Aug.4.98%4.99%4.85%4.88%5.00%5.68%6.59%8.25%5.40% Sept.4.82%4.90%4.69%4.72%4.85%5.51%6.43%8.25%5.37% Oct.4.89%4.91%4.72%4.73%4.85%5.51%6.42%8.25%5.37% Nov.4.95%4.96%4.64%4.60%4.69%5.33%6.20%8.25%5.37% Dec.4.85%4.88%4.58%4.56%4.68%5.32%6.22%8.25%5.36%2007: Jan.4.96%4.94%4.79%4.76%4.85%5.40%6.34%8.25%5.36% Feb.5.02%4.97%4.75%4.72%4.82%5.39%6.28%8.25%5.36% Mar.4.97%4.90%4.51%4.56%4.72%5.30%6.27%8.25%5.35% Apr.4.88%4.87%4.60%4.69%4.87%5.47%6.39%8.25%5.36% May.4.77%4.80%4.69%4.75%4.90%5.47%6.39%8.25%5.36%June4.63%4.77%5.00%5.10%5.20%5.79%6.70%8.25%5.36%

Sources of data: Economic Report of the President and Fannie Mae website.

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Exh. 9

Exhibit 9CALIFORNIA PIZZA KITCHENPro Forma Tax Shield Effect of Recapitalization Scenarios(Dollars in thousands, except share data; figures based on end of June 2007)

Debt/Total CapitalActual10%20%30%

Interest rate (1)6.16%6.16%6.16%6.16%Tax rate32.5%32.5%32.5%32.5%

Earnings before income taxes and interest(2)30,05430,05430,05430,054Interest expense01,3912,7834,174 Earnings before taxes30,05428,66327,27125,880Income taxes9,7559,3038,8528,400 Net income20,29919,35918,41917,480

Book value:Debt022,58945,17867,766Equity225,888203,299180,710158,122 Total capital225,888225,888225,888225,888

Market value:Debt(3)022,58945,17867,766Equity(4)643,773628,516613,259598,002 Market value of capital643,773651,105658,437665,769

Notes:(1) Interest rate of CPK's credit facility with Bank of America: LIBOR + 0.80%. (2) EBIT includes interest income.(3) Market values of debt equal book values.(4) Actual market values of equity equals the share price ($22.10) multiplied by the current number of shares outstanding (29.13 million).

Source: Case writer analysis based on CPK financial data.