UPDATE 2-California Pizza Kitchen lifts outlook; shares rise

* CPK Q3 shr view raised to 22-24 cts from 19-21 cts

* CPK shares up 2 percent in after-hours trade

* Ruby Tuesday profit up on cost controls, shares up (Adds background, results from Ruby Tuesday, byline; updates share activity; previous SEATTLE)

LOS ANGELES, Oct 7 (Reuters) - California Pizza Kitchen Inc raised its third-quarter earnings outlook on Wednesday, after cost controls and a lower tax rate helped offset falling revenue, and its shares rose 2 percent in after-hours trade.

Separately, bar and grill chain Ruby Tuesday (RT.N) posted a fiscal first-quarter profit that was higher than a year earlier, as cost controls offset weak demand. [ID:nN07391233]

U.S. restaurants, which are benefiting from falling food costs, are slashing expenses to protect profits as diners save money by trading down to less-expensive eateries or preparing meals at home. [ID:nN06392548]

CPK CPKI.O, which frequently raises or lowers its outlook prior to reporting earnings, now expects to earn 22 cents a share to 24 cents a share for the quarter ended Sept. 27. It had previously forecast per-share earnings of 19 cents to 21 cents.

Analysts, on average, expected 21 cents per share, according to Thomson Reuters I/B/E/S.

The stronger outlook "underscores the progress we've made in driving sustainable operating efficiencies" along with a reduced tax rate, CPK said in a statement.

During the third quarter, revenue fell 5.3 percent to $164.8 million.

Sales at company-owned restaurants open at least 18 months fell about 8 percent, a steeper decline than the company's forecast calling for a drop of 6.5 percent to 7.5 percent.

The company is due to report full results for its third quarter ended September 27, on Nov. 5.

CPK shares, which closed at $14.02 on the Nasdaq, rose 28 cents in after-hours trade. Shares in Ruby Tuesday closed at $7.91 in regular trade on the New York Stock Exchange and were trading at $8 in extended trade. (Additional reporting by Aarthi Sivaraman; Editing by Tim Dobbyn and Carol Bishopric)