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CKE Restaurants, Inc. Reports Positive Period 11 Blended Same-Store Sales

Posted on: Wednesday, 13 December 2006, 09:00 CST

CARPINTERIA, Calif., Dec. 13 /PRNewswire-FirstCall/ -- CKE Restaurants, Inc. announced today period 11 same-store sales for the four weeks ended Dec. 4, 2006, for Carl's Jr.(R) and Hardee's(R).

Brand Period 11 Year to Date FY 2007 FY 2006 FY 2007 FY 2006 Carl's Jr. +0.5% +5.4% +5.1% +1.6% Hardee's +5.2% -3.9% +4.8% -1.3% Blended +2.9% +0.8% +4.9% +0.1%

Commenting on the Company's performance, Andrew F. Puzder, president and chief executive officer, said, "We are pleased to report positive blended same-store sales of 2.9 percent for period 11. This also marks the 13th consecutive period -- or one full fiscal year -- of positive same-store sales for both Carl's Jr. and Hardee's."

"We attribute these gains to our innovative, premium-quality product strategy, as well as the appeal of our major brands to the 'young, hungry guy' demographic. Given our continuing success with this approach, we will maintain our emphasis on our premium-quality menu offerings -- as well as our premium-quality service initiatives -- for the long term. Perhaps the best validation of the wisdom of this strategy can be found in the numerous examples of our competitors mimicking our products, from our large Angus beef burgers to our 'first-in-fast-food' use of such burger toppings as jalapenos and gourmet mushrooms."

"Carl's Jr. posted a same-store sales increase of 0.5 percent during period 11, compared to a 5.4 percent increase in the prior year. During the period, Carl's Jr. debuted the latest in its 'meat-as-a-condiment' burger lineup -- the Philly Cheesesteak Burger(TM)," said Puzder. "Topped with sliced steak, cheese, green peppers and onions, the burger was featured earlier in the year at its sister chain Hardee's and drew rave reviews from our guests. The burger was introduced Nov. 15, but television spots for the burger did not begin until the final week of the period. In addition, Carl's Jr. continued to feature the Smoked Sausage Breakfast Sandwich(TM) during the breakfast daypart. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased almost six percent, with most of the gain coming from the prior year when the brand first debuted its popular Hand-Scooped Ice Cream Shakes & Malts(TM). Average unit volume for period 11 was higher than any comparable period 11 ever." Revenue for period 11 from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $43.8 million.

"Hardee's recorded a 5.2 percent same-store sales increase in period 11 versus a 3.9 percent decline in the prior-year period. In response to ongoing customer demand, Hardee's reintroduced the Chili Cheese Thickburger(R) Nov. 13. The burger features a charbroiled, 1/3-pound, 100 percent Angus beef patty topped with chili, diced yellow onions, mustard, American cheese, and pickles on a seeded bun, and is available for a limited time along with classic Chili Cheese Fries. Hardee's also continued to promote the Loaded Breakfast Burrito(TM) during the breakfast daypart," Puzder continued. "On a two-year cumulative basis, Hardee's same-store sales have increased 1.3 percent. In addition, Hardee's period 11 average unit volume was higher than any comparable period 11 since 1994." Revenue for period 11 from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $49.0 million.

For period 11, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:

Carl's Jr. $ 43.8 million Hardee's $ 49.0 million La Salsa Fresh Mexican Grill(R) $ 3.1 million Total $ 95.9 million

Same-store sales results for period 12 of fiscal year 2007, ending Jan. 1, 2007, will be reported on or about Jan. 10, 2007.

As of its fiscal 2007 third quarter ended Nov. 6, 2006, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,113 franchised, licensed or company-operated restaurants in 43 states and in 14 countries, including 1,079 Carl's Jr. restaurants, 1,923 Hardee's restaurants and 95 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 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.

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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