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CKE Restaurants, Inc. Reports Positive Period Five Blended Same-Store Sales

Posted on: Tuesday, 27 June 2006, 09:00 CDT

CARPINTERIA, Calif., June 27 /PRNewswire-FirstCall/ -- CKE Restaurants, Inc. announced today period five same-store sales for the four weeks ended June 19, 2006, for Carl's Jr.(R) and Hardee's(R).

Brand Period 5 Year to Date FY 2007 FY 2006 FY 2007 FY 2006 Carl's Jr. +4.7% +1.7% +5.4% +2.3% Hardee's +4.6% +0.7% +5.4% +0.1% Blended +4.7% +1.2% +5.4% +1.2%

Commenting on the Company's performance, Andrew F. Puzder, president and chief executive officer, said, "We are pleased to report our seventh consecutive period of positive same-store sales for both Carl's Jr. and Hardee's. While we are very pleased with our recent sales trends, now that the summer vacation driving season has begun, consumers may begin to feel the pinch of higher gasoline prices more profoundly, which, coupled with an associated increase in competitive discounting activities, may have a dampening effect on our results for the balance of the summer months."

"The period five results for Carl's Jr. reflect the brand's continuing promotion of its 'bigger, better' Bacon Swiss Crispy Chicken Sandwich(TM) along with strong sales of the delicious Jalapeno Burger(TM), which performed so well as a limited-time offer that it has been made into a permanent menu item," said Puzder. "At breakfast, Carl's Jr. continued to promote its Steak & Egg Breakfast Burrito made with real steak and fresh salsa. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased more than six percent. Average unit volumes for period five were higher than any comparable period five ever." Revenue for period five from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $46.5 million.

"Hardee's results for period five reflect the continuing promotion of its unique 'meat-on-meat' Philly Cheesesteak Thickburger(TM), featuring a 1/3-pound Thickburger(R) patty topped with sliced steak, cheese, green peppers and onions. Hardee's also introduced a Hillshire Farms(R) Smoked Sausage Biscuit for its breakfast customers during the period," Puzder continued. "Hardee's same-store sales have increased by more than five percent for the period on a two-year cumulative basis. In addition, Hardee's period five average unit volume was higher than any comparable period five since fiscal 1997." Revenue for period five from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $50.8 million.

For period five, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:

Carl's Jr. $46.5 million Hardee's $50.8 million La Salsa Fresh Mexican Grill(R) $3.6 million Total $100.9 million

Same-store sales results for period six of fiscal year 2007, ending July 17, 2006, will be reported on or about July 26, 2006.

As of the end of its fiscal 2007 first quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,141 franchised or company-owned restaurants in 43 states and in 13 countries, including 1,062 Carl's Jr. restaurants, 1,963 Hardee's restaurants and 100 La Salsa Fresh Mexican Grill(R) 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 that are often difficult to predict, are beyond the Company's control and which may cause results to differ materially from expectations. 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, the effectiveness of operating initiatives and advertising and promotional efforts (particularly at the Hardee's brand), changes in economic conditions or prevailing interest rates, changes in the price or availability of commodities, availability and cost of energy, workers' compensation 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 the Company's strategies, the availability of financing for the Company and its franchisees, unfavorable outcomes in litigation, changes in accounting policies and practices, effectiveness of internal controls over financial reporting, new legislation or government regulation (including environmental laws), the availability of suitable locations and terms for the sites designated 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.

Contact: John Beisler Vice President - Investor Relations CKE Restaurants, Inc. 805-745-7750

CKE Restaurants, Inc.

CONTACT: John Beisler, Vice President - Investor Relations of CKERestaurants, Inc., +1-805-745-7750

Web site: http://www.ckr.com/

Source: PRNewswire-FirstCall

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