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CKE Restaurants, Inc. Reports Positive Period 13, Fourth Quarter, Fiscal Year Blended Same-Store Sales

Posted on: Wednesday, 7 February 2007, 09:00 CST

CARPINTERIA, Calif., Feb. 7 /PRNewswire-FirstCall/ -- CKE Restaurants, Inc. announced today period 13 same-store sales for the four weeks ended Jan. 29, 2007, for Carl's Jr.(R) and Hardee's(R) as well as fourth quarter results for the twelve weeks ended on the same date and results for the entire fiscal year.

Brand Period 13 Fourth Quarter Fiscal Year FY 2007 FY 2006 FY 2007 FY 2006 FY 2007 FY 2006 Carl's Jr. +2.1% +5.8% +2.8% +5.3% +4.9% +2.2% Hardee's 0.0% +12.4% +4.8% +2.9% +4.8% -0.2% Blended +1.0% +9.1% +3.8% +4.1% +4.8% +1.0%

Commenting on the Company's performance, Andrew F. Puzder, president and chief executive officer, said, "We are very pleased to report our 17th consecutive period of positive blended same-store sales at Carl's Jr. and Hardee's, as well as a 3.8 percent increase for the fourth quarter. Both brands were able to successfully roll over very difficult prior-year comparisons. Hardee's, in particular, was rolling over a 12.4 percent increase in the prior year and kept sales flat despite adverse weather conditions in the current year."

"For the full fiscal year, blended same-store sales increased 4.8 percent. The primary drivers behind this performance were our continued service-focused initiatives as well as our premium-quality product strategy featuring such innovative menu items as the Pastrami Burger(TM), the Jalapeno Burger(TM) and Philly Cheesesteak Thickburger(TM), new breakfast products including the Steak 'N' Egg Burrito(TM) and the Hillshire Farms Smoked Sausage Breakfast Sandwich(TM), named the best new breakfast item in 2006 by QSR Magazine, as well as the expansion of our Hand-Scooped Ice Cream Shakes & Malts(TM) flavor lineup. We believe these items, along with our cutting-edge, irreverent advertising, will keep both our core brands well-positioned as we face difficult sales comparisons over the coming periods."

"Carl's Jr. posted a same-store sales increase of 2.1 percent during period 13, compared to a 5.8 percent increase in the prior year. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased almost eight percent. During the period, Carl's Jr. continued to feature the latest variety of its 'meat-as-a-condiment' burger lineup - the Philly Cheesesteak Burger(TM)," said Puzder. "In addition, Carl's Jr. introduced the Chipotle Chicken Salad(TM) on Jan. 3 and continued to promote the Mint Chip Hand-Scooped Ice Cream Shake(TM) flavor. Average unit volume for period 13 was higher than any comparable period 13 in the brand's history. Further, full-year same-store sales increased 4.9 percent, marking the seventh straight year of positive same-store sales at Carl's Jr.". Revenue for the fourth quarter from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $133.0 million.

"Hardee's same-store sales in period 13 were flat, against a very strong 12.4 percent increase in the prior year. Last year's results were aided by some of the mildest weather ever recorded for January in many of our core Midwest markets. On a two-year cumulative basis, Hardee's same-store sales have increased by more than 12 percent. During the period, the chain featured the Chili Cheese Thickburger(R), along with classic Chili Cheese Fries. In addition, Hardee's continued to offer the Big Twin(R), as well as the Southwest Chicken Salad(TM) and a Mint Chip Hand-Scooped Ice Cream Shake flavor. The chain also added the Monster Biscuit(TM) -- a Made-From-Scratch Biscuit featuring three half-strips of bacon, a sausage patty, four slices of shaved ham, a folded egg and two slices of cheese -- to the breakfast menu on Jan. 16," said Puzder. "Hardee's period 13 average unit volume was higher than any comparable period 13 since 1994, which is as far back as we can currently check. Also, full-year same-store sales increased by an impressive 4.8 percent." Revenue for the fourth quarter from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $145.0 million.

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

Carl's Jr. $ 133.0 million Hardee's $ 145.0 million La Salsa Fresh Mexican Grill(R) $ 9.4 million Total $ 287.4 million

The Company will report same-store sales results for period one of fiscal year 2008, ending Feb. 26, 2007, on or about Mar. 7, 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(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.

CKE Restaurants, Inc.

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

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

Source: PRNewswire-FirstCall

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