Los Angeles-based California Pizza Kitchen Inc. (NASDAQ:CPKI), which currently owns and operates 207 restaurants and franchises 56 restaurants, is on track to open three company-owned full service restaurants in the fourth quarter of fiscal 2010 in the U.S. In addition, California Pizza Kitchen’s franchisees plan to open two international full-service  restaurants within the same time-frame.

Recently, the company opened its first full-service restaurant in Tuscon, Arizona. The new 4,400 square-foot restaurant is located in the south wing of the Tucson Mall. Some other restaurants with their units in Tuscon Mall are Red Robin Gourmet Burgers Inc.(NASDAQ:RRGB), The Cheesecake Factory Inc. (CAKE) and Olive Garden of Darden Restaurants Inc. (DRI).

Last week, California Pizza Kitchen opened another restaurant at Bridgewater, New Jersey. The restaurant will compete against The Cheesecake, Chipotle Mexican Grill Inc. (NYSE:CMG) and Maggiano’s Littile Italy of Brinker International Inc. (NYSE:EAT) in this mall. 

Apart from its popular offering of pizzas, salads, soups and sandwiches, both new restaurants will offer an extensive beverage menu.

We believe that these new openings are indicative of the company’s efforts to gain market share in the gradually reviving restaurant industry, which was badly hit by the recent economic downturn. The company is also accelerating its presence internationally. In India, California Pizza Kitchen has already opened its first restaurantand plans to open 15 more units in the next 10 years.

According to a recent analysis by Fitch Ratings, visits to full-service restaurants are accelerating in the U.S. Hence, we believe the opening of California Pizza Kitchen full-service restaurants in malls will attract higher-income diners who are recovering faster than the lower-income group leading to improved earnings.

We have a Zacks #3 Rank (short-term Hold rating) on the shares of California Pizza Kitchen. We also reiterate our long-term Neutral recommendation.

 
CHEESECAKE FACT (CAKE): Free Stock Analysis Report
 

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