CKE Restaurants® Announces First Quarter
Fiscal 2011 Results
June 22, 2010 04:52 PM Eastern Daylight Time
CARPINTERIA, Calif.--(EON: Enhanced Online News)--CKE Restaurants, Inc. (NYSE:CKR) announced today
first quarter results and the filing of its Report on Form 10-Q with the Securities and Exchange Commission (“SEC”)
for the sixteen weeks ended May 17, 2010.
First Quarter Highlights
(1) We define company-operated restaurant-level margin as restaurant-level income divided by company-operated
restaurants revenue. Restaurant-level income is company-operated restaurants revenue less restaurant operating
costs, which are the expenses incurred directly by our company-operated restaurants in generating revenues and do
not include advertising costs, general and administrative expenses or facility action charges.
(2) Excludes interest expense, depreciation and amortization, facility action charges, share-based compensation
expense, transaction fees and costs and income tax expense. See “Non-GAAP Financial Measures” below.
“In our first quarter, the U.S. economic downturn and particularly high unemployment rates in California and among
our core target audience of young men, continued to impact same-store sales at Carl’s Jr.® and Hardee’s®. The
deleveraging impact of negative same-store sales combined with increased commodity costs and increased labor
costs, due to increases in the minimum wage, also negatively impacted our restaurant-level margins. However, I am
pleased that we maintained our market share, that Hardee’s has now had three consecutive periods of positive
same-store sales, and that we started to see same-store sales trends improve for both brands late in the quarter,”
said Andrew F. Puzder, Chief Executive Officer. “We will remain focused on maintaining our premium quality brands
and improving our same-store sales with innovative products and cutting edge advertising that focuses on the taste,
quality and value of our products. We will also continue to stra