PIZZA KITCHEN SIZZLES CALIFORNIA CHAIN SEES SHARES SOAR AFTER IPO.

Byline: Chris Sieroty Staff Writer

Wall Street got a taste of California Pizza Kitchen Inc. on Wednesday, sending shares of the restaurant chain up 35 percent on its first day of trading after raising $79.5 million in its in initial public offering.

The company's initial public offering of 5.3 million shares opened on the Nasdaq composite index at $20. In early afternoon trading, shares were changing hands at $20.688 before closing at $20.25, up $5.25 on volume of 7.4 million shares.

Shares in the Los Angeles-based restaurant chain - which popularized BBQ chicken pizza and Kung Pao spaghetti, among other fusion foods - were priced at $15 a share late Tuesday.

California Pizza Kitchen shares are trading under the symbol CPKI.

Larry Flax, co-founder of the popular eatery, said the interest shown by both brokers and investors was ``terrific.''

``We own the premium brand of pizza in the United States,'' said Flax. ``Build the company based on a brand and you're not just a restaurant chain, but a very successful company.''

California Pizza Kitchen, which opened its first restaurant in Beverly Hills in 1985, now has restaurants in 26 states. In December 1996, after opening the chain's second store at the Beverly Center shopping mall, the company opened its third restaurant and first in the San Fernando Valley at the Westfield Shoppingtown Topanga in Canoga Park.

Fred Hipp, president and chief executive officer, said the money raised from the initial public offering will be used to pay $40 million in bank debt and for expansion.

``Over the next five years about 90 percent of our growth will be to expand in our current markets,'' said Hipp. ``We are going to take advantage of our name recognition to dominate those markets.''

This year the company opened in Denver and by the end of the year expects to open three restaurants in the market, he said.

``The unique position California Pizza Kitchen is in is that the average customer spends $10.50 per visit,'' Hipp said. ``Ninety-two percent of those customers say they will come back. In the restaurant business, that's huge.''

``It's upscale food for a very reasonable value,'' added Hipp.

The restaurant chain posted total revenue of $100.9 million and net income of about $2 million for the six months ended July 2, vs. total revenue of $86 million and net income of $2.7 million last year.

California Pizza Kitchen plans on opening 10 restaurants this year, bringing its total to 114.