California Pizza Kitchen to split stock three-for-two in June

Nation's Restaurant News,  June 4, 2007  

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LOS ANGELES -- California Pizza Kitchen Inc. said in late May that its board of directors had approved a three-for-two stock split to be distributed as a 50-percent stock dividend to shareholders of record as of June 11.

California Pizza Kitchen stakeholders will receive on June 18 one additional share for every two shares of common stock held, and cash will be distributed in lieu of fractional shares, the company said. The stock split will increase the number of shares outstanding from about 19.4 million to about 29.1 million, the company added.

Rick Rosenfield and Larry Flax, co-chief executives of CPK, which operates or franchises 213 namesake casual-dining restaurants, said the stock split--the first since CPK became a public company--would increase liquidity of the company's stock.

Companies usually undertake stock splits when share prices have attained a high value. A split lowers the price by increasing the number of shares outstanding. Both Yum! Brands Inc. and Buffalo Wild Wings Inc. recently announced stock splits.

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