Cke Restaurants, Inc. Assumes Control Of Georgia Market
(Wednesday, November 29, 2006) -
CKE Restaurants, Inc. (NYSE: CKR), owner, operator and franchisor of the Carl's Jr.(R), Hardee's(R) and La Salsa Fresh Mexican Grill(R) restaurant brands, announced the acquisition in October of an additional 14 Hardee's restaurants in the Georgia market. This brings the total number of restaurants the Company operates in the Georgia market to 54, making the Company the largest Hardee's operator in the state and the sole operator in the Atlanta metropolitan area.
Andrew F. Puzder, president and chief executive officer of CKE Restaurants, Inc., said, "This transaction is a very positive move for the Company and the Hardee's brand. Georgia is in the heart of Hardee's core Southeast market, and has the potential to be a very integral part of Hardee's growth strategy. We are particularly excited about developing the Atlanta market and our real estate team is working to identify new restaurant opportunities in that region. We are refranchising certain of the recently acquired restaurants to facilitate development. However, we expect to maintain a meaningful number of company-operated restaurants in the Atlanta area and to further develop that market."
The most recent restaurants were purchased from the court appointed receiver who obtained control of the stores when the Company terminated the former franchisee's franchise agreements. Hardee's franchisees currently operate 46 restaurants in the Georgia market.
As of the second fiscal quarter ended Aug. 14, 2006, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,131 franchised, licensed or company-operated restaurants in 43 states and in 13 countries, including 1,072 Carl's Jr. restaurants, 1,945 Hardee's restaurants and 98 La Salsa Fresh Mexican Grill restaurants.
SAFE HARBOR DISCLOSURE
Matters discussed in this news release contain forward-looking statements relating to future plans and developments, financial goals, and operating performance that are based on management's current beliefs and assumptions. Such statements are subject to risks and uncertainties. Factors that could cause the Company's results to differ materially from those described include, but are not limited to, whether or not restaurants will be closed and the number of restaurant closures, consumers' concerns or adverse publicity regarding the Company's products, effectiveness of operating and product initiatives and advertising and promotional efforts (particularly at the Hardee's brand), changes in economic conditions, changes in the price or availability of commodities, availability and cost of energy, workers' compensation, employee health insurance costs and general liability premiums and claims experience, changes in the Company's suppliers' ability to provide quality and timely products to the Company, delays in opening new restaurants or completing remodels, severe weather conditions, the operational and financial success of the Company's franchisees, franchisees' willingness to participate in our strategy, availability of financing for the Company and its franchisees, unfavorable outcomes on litigation, changes in accounting policies and practices, new legislation or government regulation (including environmental laws), the availability of suitable locations and terms for the sites designed for development, and other factors as discussed in the Company's filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the New York Stock Exchange.
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COMPANY INFORMATION
Hardee's
6307 Carpinteria Ave., #A
Carpinteria,
CA
Phone: (805)745-7842
Toll Free: (866)253-7655
Fax: (714)780-6320
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