Cke Restaurants Signs Franchise Deal With Rwjp

(Saturday, January 03, 2009) - CKE Restaurants Inc., operator of the Carl's Jr. and Hardee's burger chains, said Tuesday that it signed a franchise deal with RWJP Star Enterprises that includes opening at least 121 Carl's Jr. restaurants in Texas over the next 10 years.

Terms were not disclosed.

The development agreement includes opening restaurants in the Dallas/Ft. Worth, Houston, Tyler/Longview and Beaumont, Texas markets. There are currently 16 franchised Carl's Jr. restaurants in Texas and three company-owned ones.

CKE said it was being aggressive in its Texas expansion efforts because the brand has been well received in the state and it considers the business environment favorable.

For the fiscal year to date, CKE has 18 franchise development deals. The company plans to add more than 800 new restaurants over the next five years.

On Monday, CKE said it adopted a "poison pill" plan to dissuade any hostile takeover attempts. The company said its plan does not prevent a potential acquisition, but creates "certain rights to ensure that should any unsolicited acquisition occur, it would be on terms that maximize value and are equitable to all stockholders."

A shareholder rights plan, or "poison pill" provision, usually makes a hostile takeover more expensive and more difficult for the acquirer.

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