California Pizza Kitchen (CPKI), which I first discussed here on May 16, 2009, at a price of $13.53, continues to exhibit sideways action at or near $16.50. But I still like the business model at this stage. Here's why.

In 2011, CPKI's performance should improve as the U.S. economic recovery progresses. Look for same-store sales (in this case, restaurants) to rise about 2% to 2.5%, after a 3.3% decline in 2010.

The shares of California Pizza Kitchen (CPKI) first discussed here on May 15, 2009, at a price of $13.53, have meandered at/near $16.50 for the past three months, but I still like business model at this stage. Here's why:

In 2011, CPKI's performance should continue to improve as the U.S. economic recovery progresses. Look for same store sales (in this case, restaurants) to rise about 2.0% to 2.5% in 2011, after a roughly 1% dip in 2010.

This spring, California Pizza Kitchen (CPKI) first discussed here on May 16, 2009 at a price of $13.53, made good on the March 2010, calculation to "stay the course" with the stock, only to retrench about 50%, then recover.

Talk about a wild ride, but forewarned is forearmed: as noted -- CPKI is a high-risk stock not suitable for low-risk/moderate-risk investors.

CPKI's 12-cent earnings per share performance in its March quarter was 3 cents above First Call's estimate, and that should have been enough to keep institutional investors interested.

Today was a day that opened up and stayed up all day. The DJIA 11,000 was a floor throughout the trading session, yet it was questionable whether that would remain so at the end of the trading day, when it became a bumper car game around the DJIA 11,000 level. The unofficial closing bell level appears to have held the 11,000 mark. Main Street and Wall Street are still awaiting the direction to come from earnings season which starts today.

Here were today's unofficial closing bell levels:

Dow 11,005.97 +8.62 (0.08%)
Nasdaq 2,457.87 +3.82 (0.16%)
S&P 500 1,196.48 +2.11 (0.18%)

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The next company on my list of the top 25 stocks for the NEXT 25 years is California Pizza Kitchen (NASDAQ: CPKI). This Los Angeles-based company currently has 210 units open, with the company operating 180 of them -- the remaining 30 are franchised. The concept was founded in 1985, but serious growth began about five years ago.

CPKI has the room to expand the concept by a factor of 15. The United States alone can support upwards of 3,000 stand-alone units. Pizza is one of America's favorite food choices and pizza transcends all demographics and appeals to virtually all ethnic tastes. The hallmark of California Pizza Kitchen is the freshness and the high quality of its pizza products. The company also offers a variety of entree-size salads, pastas and freshly made soups to satisfy almost any taste.

CPKI has initiated a loyalty card for its customer base to accommodate both convenience and repeat business. The company has also published its own cookbook filled with its signature pizza recipes. The average unit volume for CPKI is upwards of $3 million annually and growing. California Pizza Kitchen recently signed a deal with Kraft Foods Inc. (NYSE: KFT) to manufacture and distribute its frozen pizzas to the grocery store sales channel. Not only does this deal help CPKI build its revenue base, but it also helps spread the word about its dedication to a quality product. The Kraft opportunity allows for distribution to all 50 states.