789356--3/14/2007--CALIFORNIA_PIZZA_KITCHEN

related topics

{acquisition, growth, future}

{regulation, change, law}

{cost, operation, labor}

{cost, regulation, environmental}

{condition, economic, financial}

{operation, natural, condition}

{financial, litigation, operation}

{competitive, industry, competition}

Our growth strategy requires us to open new restaurants at a measured pace. We may not be able to achieve our planned expansion. Our success depends on our ability to locate a sufficient number of suitable new restaurant sites. We could face labor shortages, which could slow our growth. Our expansion into new markets may present increased risks due to our unfamiliarity with the area. Our expansion may strain our infrastructure, which could slow our restaurant development. Our restaurant expansion strategy focuses primarily on further penetrating existing markets. This strategy can cause sales in some of our existing restaurants to decline. Our operations are susceptible to changes in food and supply costs, which could adversely affect our margins. Changes in consumer preferences or discretionary consumer spending or negative publicity could adversely impact our results. Forty-one percent of our U.S. based restaurants are located in California. As a result, we are highly sensitive to negative occurrences in that state. Increases in the minimum wage may have a material adverse effect on our business and financial results. Rising insurance costs could negatively impact profitability. Compliance with changing regulation of corporate governance and public disclosure may result in additional expense. The restaurant industry is affected by litigation and publicity concerning food quality, health and other issues, which can cause customers to avoid our restaurants and result in liabilities. Future changes in financial accounting standards may affect our reported results and/or reported results of operations.

Full 10-K form ▸

789356--3/14/2007--CALIFORNIA_PIZZA_KITCHEN_INC