CKE Restaurants

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International Guild of Hospitality & Restaurant Managers

CKE Restaurants, Inc. owns, operates and franchises quick-service restaurants, primarily under the brand names Carl's Jr. and Hardee's. Carl's Jr. restaurants are located predominately in California . Hardee's restaurants are located primarily in the Midwest and Southeast. The Company's system-wide restaurant portfolio at January 28, 2002 consisted of 443 Company-operated and 526 franchised and licensed Carl's Jr. restaurants and 742 Company-operated and 1,648 franchised and licensed Hardee's restaurants. The Company also has investments in other restaurant brands such as Checkers Drive-in, La Salsa, Green Burrito and Timber Lodge Steakhouse. On June 10, 2001 , the Company sold its Taco Bueno concept.

Through a series of transactions, the Company has various investments in Checkers Drive-In Restaurants, Inc. (Checkers), which, as of January 28, 2002 , consisted of common stock and warrants to purchase common stock. Checkers operates and franchises approximately 427 Checkers and 427 Rally's double drive-thru quick-service hamburger restaurants, primarily in the Southeastern and Midwestern United States . As of April 5, 2002 the Company owned 982,030 shares of Checker's stock, representing 8.6% of the outstanding shares.

On March 1, 2002 the Company acquired Santa Barbara Restaurant Group (SBRG), Inc. and its La Salsa, Green Burrito and Timber Lodge Steakhouse restaurant brands. The La Salsa restaurants are quick-service restaurants featuring traditional Mexican food items. The Green Burrito restaurants feature a menu of traditional Mexican food items including burritos, tostadas, enchiladas, tacos, gorditas, chile rellenos, tortilla soup, appetizers and non-alcoholic Mexican drinks. Timber Lodge Steakhouse restaurants offer traditional American meals at moderate prices.

Carl's Jr.

The Carl's Jr. menu is relatively uniform throughout the chain and features several charbroiled hamburgers and chicken sandwiches, including The Six Dollar Burger, Famous Star, Western Bacon Cheeseburger, Super Star, Charbroiler Chicken Sandwiches, Crispy Chicken Sandwiches, the Sourdough Bacon Cheeseburger and the Spicy Chicken Sandwich. The Company also offers a fish sandwich, stuffed baked potatoes, prepackaged salads, french fries, onion rings and fried zucchini. Most Carl's Jr. restaurants also have self-service salad bars and a breakfast menu including eggs, bacon, sausage, French Toast Dips, the Sunrise Sandwich, Croissant Sunrise Sandwich and a breakfast burrito. In addition, the restaurants sell a variety of promotional products on a limited basis. Carl's Jr. also offers a self-service salad bar and an all-you-can-drink beverage bar.

Most Carl's Jr. restaurants are freestanding, ranging in size from 2,500 to 4,000 square feet, with a seating capacity of 65 to 115 persons and drive-thru facilities. Some restaurants are located in shopping malls and other in-line facilities.

As of January 28, 2002, 107 Carl's Jr. Company-operated locations had been converted to Carl's Jr./Green Burrito dual concept restaurants, and the Company paid a franchise fee and royalty to SBRG, the owner of the Green Burrito brand. At the end of fiscal 1996, the Company elected to sub-franchise, and shortly thereafter began offering, the Carl's Jr./Green Burrito dual-brand to its franchise community. As of January 28, 2002 , 88 franchised Carl's Jr. restaurants have been converted to the Carl's Jr./Green Burrito concept. On March 1, 2002 , the Company acquired SBRG, which owns the Green Burrito brand. This acquisition gives the Company control of the menu and further development of the brand, and eliminates its franchise fee and royalty expense. The Company receives a franchise fee for each franchise conversion and royalties from its franchisees' Green Burrito food sales.

Hardee's

Hardee's restaurants offer hamburgers, chicken sandwiches, roast beef sandwiches and fish sandwiches for lunch and dinner, as well as fried chicken in its restaurants located in certain markets. Unlike many quick-service hamburger restaurants, a significant portion of Hardee's day part is breakfast. Breakfast generates approximately 40% of Hardee's overall operating revenue. Hardee's breakfast menu features Made From Scratch biscuits, biscuit breakfast sandwiches and other items such as hash rounds and breakfast platters. Substantially all of Hardee's restaurants have drive-thru facilities, and selected restaurants are open 24 hours a day, primarily on the weekends. Most Hardee's restaurants are freestanding, ranging in size from 3,000 to 3,500 square feet, with a seating capacity of 75 to 100 persons.

Since its acquisition of Hardee's in 1997, the Company introduced certain made-to-order lunch and dinner menu items that are served in its Carl's Jr. restaurants, such as The Six Dollar Burger, the Famous Star and other signature products from Carl's Jr. The Company also has begun implementing the Carl's Jr.-style limited table service and added "all-you-can-drink" beverage bars in all of its Hardee's restaurants. Additionally, the Company is remodeling its Hardee's restaurants to a new "Star Hardee's" format, which it designed to update and revitalize the Hardee's brand with the menu and operating qualities of Carl's Jr. A Star Hardee's remodel involves installing charbroilers in the kitchens, remodeling the interior and exterior of the restaurant and installing new signage that accents the Hardee's name with a Star logo. As of January 28, 2002, the Company had remodeled 385, or approximately 52%, of its Hardee's company restaurants.

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Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.