CKE Restaurants, Inc. Announces Fourth Quarter and Fiscal Year-End Results

Apr 24, 2001, 01:00 ET from CKE Restaurants, Inc.

    ANAHEIM, Calif., April 24 /PRNewswire Interactive News Release/ -- CKE
 Restaurants, Inc. (NYSE:   CKR) ("CKE") today announced the results for the
 12 and 52 weeks ended January 29, 2001.  Operating results for the prior-year
 ending January 31, 2000 include 53 weeks.  All income (loss) per share amounts
 are stated on a diluted basis.
 
     SUMMARY RESULTS
     Results for CKE's fourth quarter and fiscal year are summarized in the
 table below.  Pro-forma amounts are shown after applicable taxes as if the
 company had (1) not recorded the special charges and (2) was able to record a
 tax asset in fiscal year 2001, as it had been able to in the prior fiscal
 year.
 
 
                                 (Dollars in millions, except per share data)
                                     2001 Quarter           2000 Quarter
                                  Dollars       EPS        Dollars      EPS
      Reported net loss          $(148.3)     $(2.94)      $(61.8)    $(1.22)
      Special charges and tax
       valuation reserve, net     (129.1)      (2.56)       (49.3)     (0.97)
      Pro forma (loss)            $(19.2)     $(0.38)      $(12.5)    $(0.25)
 
 
                                   2001 Fiscal Year         2000 Fiscal Year
                                  Dollars         EPS      Dollars        EPS
      Reported net loss          $(194.1)     $(3.84)       $(29.0)    $(0.56)
      Special charges and tax
       valuation reserve, net     (161.6)      (3.20)        (49.3)     (0.95)
      Pro forma (loss) income     $(32.5)     $(0.64)        $20.3      $0.39
 
 
     EXECUTIVE COMMENTARY
     "Without a doubt, fiscal 2001 was a very challenging year," said Andrew F.
 Puzder, CKE's president and chief executive officer.  "When I took over as CEO
 and President in September 2000, I knew that we had three tremendous quick
 service brands, but that we had to successfully execute several major
 initiatives to return to profitability.  Those initiatives include the turn-
 around of Hardee's operations, the need to significantly reduce our leverage
 and the need to reduce our expenses.   Although not reflected in our year-end
 numbers, there are efforts underway that we believe will help us complete
 these initiatives and return to profitability.
     "In November 2000, we introduced a new operations improvement program at
 Hardee's, 'Operations QSC -- Quality, Service, Cleanliness,' and we have been
 encouraged by the progress made to-date.  We have launched our 'Come on Home'
 advertising campaign at Hardee's and are introducing nostalgic products from
 Hardee's past.
     "We sold approximately 400 Hardee's and Carl's Jr. stores and generated
 $137.8 million of proceeds to pay down the bank facility.  Today, we have
 approximately $135.0 million outstanding, down from almost $300.0 million a
 little over a year ago.  With the sale of Taco Bueno, we will be able to
 reduce our senior credit facility borrowings to substantially below
 $100 million.  We intend to refinance the facility by the end of the fiscal
 year.
     "As we sell stores, we are focused on reducing general and administrative
 expenses and streamlining corporate business processes to achieve additional
 savings.
     "As shown in the pro-forma analysis on page one of this press release, the
 majority of our net loss for the fourth quarter was due to the charges
 associated with our need to close down additional stores, principally
 Hardees's, and a one-time charge to write-off our tax asset.  We carefully
 analyzed stores whose prospects for future profit were minimal and decided to
 close those stores to maximize our operating profitability on a going-forward
 basis.
     "Carl's Jr. is performing extremely well, but there is no silver bullet to
 turn around Hardee's.  We believe our debt reduction strategy and focus on
 rebuilding the Hardee's brand, each of which will take time to fully
 implement, will pave the way for our return to profitability."
 
     FINANCIAL REVIEW
     Comments regarding the fourth quarter results are as follows:
 
     --  During the fourth quarter of fiscal 2001, the Company recorded a
         special pre-tax net charge of $97.0 million and a tax valuation
         reserve of $70.2 million.  The tax valuation reserve relates to the
         company no longer recording a tax asset for net operating loss carry
         forwards.  Recording the tax valuation reserve had the effect of
         reducing the tax benefit of the operating loss shown in the statement
         of operations.  The special charge, which was primarily non-cash in
         nature, consisted of (a) a $19.1 million store closure reserve for
         approximately 80 Hardee's and approximately 20 Carl's Jr. restaurants
         that the Company has closed or plans to close, (b) an impairment
         charge of $76.8 million for certain restaurants that that the Company
         will close or for restaurants that the Company plans to continue to
         operate but for which the net book value is not supported by future
         estimated cash flows, (c) a $3.7 million strengthening to the Carl's
         Jr. self insurance reserves, (d) a credit for a net $11.3 million gain
         on the sale of restaurants sold to franchisees and (e) a loss of
         $8.7 million on the sale of Taco Bueno.
 
     --  During the fourth quarter of fiscal 2000, the Company recorded a
         special pre-tax net charge of  $80.3 million.  The charge, which was
         primarily non-cash in nature, consisted of (a) $42.0 million for a
         store-closure reserve and asset impairment charge for approximately
         105 Hardee's, (b) an impairment charge of $37.3 million to write-down
         the Company's various long-term investments in other restaurant
         concepts to fair market value, (c) $2.1 million of restructuring
         charges in connection with consolidating certain administrative
         functions from Rocky Mount, N.C. to Anaheim, CA, (d) writing-off
         $3.6 million of deferred financing costs as of result of a commitment
         decrease in the Company's senior credit facility, (e) $2.6 million of
         Y2K expenses associated with restaurant computer systems, (f) writing-
         off $6.6 million in charges related to software that will not be
         implemented, (g) an additional $1.7 million in vacation expense in
         connection with a change in vacation policy, (h) writing-off
         $0.9 million in site costs for restaurants that will not be developed
         (i) a gain on the sale of Carl's Jr. and Hardee's restaurants of
         $19.5 million and (j) other miscellaneous adjustments of $3.0 million.
 
     --  Revenues for the 12 weeks ended January 29, 2001 decreased
         $121.3 million, or 25.5 percent, to $354.2 million as compared with
         the 13-week prior-year fourth quarter.  Carl's Jr. represented
         $17.3 million of the revenue decrease; Taco Bueno's revenues decreased
         by $0.9 million as compared with the prior-year quarter; and Hardee's
         revenues decreased $103.0 million.  These decreases are primarily due
         to the sale of approximately 400 Company operated stores to
         franchisees as well as the closure of approximately 120 company-
         operated stores.  While revenues from company operated stores are down
         $130.0 million, franchised and licensed restaurant revenues are up
         $8.7 million.
 
     --  Carl's Jr. restaurant level margins, excluding store closure and asset
         impairment charges of $10.9 million associated with approximately
         20 stores primarily in Oklahoma and the strengthening of self-
         insurance reserves, were 19.2 percent, compared to the prior year
         margins of 20.3 percent or down 1.1 percent.  Hardee's Company-
         operated restaurant-level margins, excluding the $85.0 million store
         closure and asset impairment charges, were 2.8 percent in the fourth
         quarter of fiscal 2001 as compared with 8.6 percent in the prior year,
         excluding similar charges.  Taco Bueno's restaurant-level margins were
         18.6 percent, down 2.7 percent from the prior year.  Overall, labor
         costs were affected by increased hourly wages resulting from the
         tightening job market and a concerted effort to increase staffing
         level to provide better guest service.  Occupancy and other operating
         costs increased for Hardee's as a result of additional depreciation
         expense associated with the "Star Hardee's" remodel program and
         declining average unit volumes.  At Carl's Jr., occupancy and other
         operating expenses increased primarily as a result of additional
         depreciation expense on the new units built during fiscal 2000 and
         increased repair and maintenance expense.  Finally, the decline in
         Hardee's same store sales contributed to the decline in its restaurant
         margins.
 
     --  Company-operated Carl's Jr. same-store sales remained relatively flat
         for the fourth quarter.  Company-operated Hardee's same-store sales
         were down 10.7 percent.  Same-store sales at Taco Bueno decreased
         2.0 percent for the quarter.
 
     Comments regarding the fiscal year results are as follows:
 
     --  During the current year, the Company recorded a pre-tax special charge
         of $151.1 million and a tax valuation reserve of  $70.2 million.
         These special charge consisted of (a) store closure and asset
         impairment charges of $98.3 million, (b) strengthening of self
         insurance reserves of $6.4 million, (c) net losses of $37.7 million on
         sales of restaurants to franchisees in fiscal 2001 and (d) a loss of
         $8.7 million on the sale of Taco Bueno.  For the prior fiscal year,
         the special charge was recorded in the fourth quarter as discussed
         above.
 
     --  Revenues for the 52 weeks decreased to $1.785 billion, down
         $205.5 million, or 10.3 percent, from the prior year 53-week period.
         Revenues increased $19.0 million, or 2.7 percent, for the Carl's Jr.
         chain.  Hardee's revenues decreased $229.3 million, or 24.4 percent.
         Revenues for the Taco Bueno chain increased $5.4 million, or
         5.8 percent, as compared with the prior year.  While revenues from
         company operated restaurants decreased $245.2 million, revenue from
         franchised and licensed restaurants increased $39.7 million.
 
     --  Carl's Jr. restaurant level margins, excluding store closure and asset
         impairment charges and increases to self-insurance reserves, were
         20.4 percent, compared to the prior year margins of 22.8 percent or
         down 2.4 percent.  Hardee's restaurant-level margins, excluding the
         store closure and asset impairment charges, were 7.6 percent.
         Restaurant-level margins at Taco Bueno were 21.2 percent, down
         3.3 percent from 24.5 percent in the prior year-to-date period,
         excluding similar adjustments made in the prior year.
 
     --  Company-operated Carl's Jr. same-store sales were up 1.8 percent.
         Company-operated Hardee's same-store sales were down 7.6 percent.
         Same-store sales at Taco Bueno decreased 1.8 percent for the quarter.
 
     SAFE HARBOR DISCLOSURE
     Matters discussed in this news release contain certain forward-looking
 statements that are based on management's beliefs and assumptions based on
 information currently known to CKE's management.  Forward-looking statements
 may include, but are not limited to, descriptions of plans or objectives of
 CKE's management for future or past operations, products or services, earnings
 or other measures of economic performance including statements of
 profitability of business segments and subsidiaries, estimates of
 recoverability of long-lived assets, current bank relationships, and current
 restructuring efforts.  Such statements reflect the view of CKE's management
 with respect to future events and are subject to risks and uncertainties, such
 as changes in the fast food industry and changes to CKE's plans, objectives,
 expectations and intentions.  Should one or more of these risks materialize or
 should underlying beliefs or assumptions prove incorrect, the company's actual
 results could differ materially from those discussed in the news release.
 Factors that could cause or contribute to such differences are changes in
 product demand and market acceptance of the company's current and future
 products, changes in economic conditions, the impact of competitive products
 and pricing, changes in the company's suppliers' ability to provide quality
 and timely products to the company, the status of the company's bank
 relationships, and other factors as discussed in CKE's filings with the
 Securities and Exchange Commission.
     Forward-looking statements speak only as of the date they are made.  CKE
 does not undertake to update forward-looking statements to reflect
 circumstances or events that occur after the date the forward-looking
 statements are made.  Without limiting the foregoing, CKE undertakes no
 obligation to update earnings guidance including any of the factors that
 influence earnings.
     CKE Restaurants, Inc., through its subsidiaries, franchisees and
 licensees, operates more than 3700 quick-service restaurants, including
 970 Carl's Jr. restaurants located in 13 Western states and Mexico;
 2603 Hardee's restaurants in 32 states and 11 foreign countries; and 125 Taco
 Bueno restaurants in Texas and Oklahoma.
 
 
                               CKE RESTAURANTS, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In thousands except per share data)
 
 
                                   Twelve     Thirteen  Fifty-two  Fifty-three
                                    Weeks       Weeks     Weeks      Weeks
                                    Ended       Ended     Ended      Ended
                                January 29, January 31, January 29, January 31,
                                     2001       2000      2001        2000
 
     Revenues:
       Company-operated
        restaurants                $299,026  $429,008  $1,569,504  $1,814,695
       Franchised and licensed
        restaurants                  55,183    46,460     215,078     175,378
               Total revenues       354,209   475,468   1,784,582   1,990,073
 
     Operating costs and expenses:
       Restaurant operations:
         Food and packaging          90,534   135,580     484,440     553,451
         Payroll and other
          employee benefits         106,545   139,454     514,535     566,394
         Occupancy and other
          operating expenses         72,825    96,438     367,235     383,144
         Store closure expense and
          asset impairment charge    95,885    41,988      98,285      41,988
                                    365,789   413,460   1,464,495   1,544,977
 
       Franchised and licensed
        restaurants                  45,521    34,784     161,171     128,128
       Advertising expenses          20,859    32,967     100,199     121,727
       General and administrative
        expenses                     35,899    44,513     145,376     147,372
       Loss (gain) on property
        sold or held for sale        (2,554)  (19,531)     46,356     (15,186)
               Total operating
                costs and expenses  465,514   506,193   1,917,597   1,927,018
 
     Operating income (loss)       (111,305)  (30,725)   (133,015)     63,055
 
     Interest expense               (16,252)  (20,315)    (69,762)    (63,283)
     Other income (expense), net     (1,403)  (49,667)     (2,487)    (47,232)
 
     Income (loss) before income
      taxes and
       extraordinary item          (128,960) (100,707)   (205,264)    (47,460)
 
     Income tax expense (benefit)    19,346   (38,865)    (11,148)    (18,053)
 
     Net income (loss) before
      extraordinary item           (148,306)  (61,842)   (194,116)    (29,407)
 
     Extraordinary item - gain on
      early retirement
       of debt, net of applicable
        income tax
       expense                            0         0           0         290
 
     Net income (loss)            ($148,306) ($61,842)  ($194,116)   ($29,117)
 
     Basic net income (loss) per
      common share
       before extraordinary item     ($2.94)   ($1.22)     ($3.84)     ($0.57)
 
     Extraordinary item - gain on
      early retirement
       of debt, net of applicable
        income taxes - Basic           0.00      0.00        0.00        0.01
 
     Basic net income (loss) per
      share                          ($2.94)   ($1.22)     ($3.84)     ($0.56)
 
     Basic weighted average shares
      outstanding                    50,501    50,748      50,501      51,668
 
     Diluted net income (loss) per
      common share
       before extraordinary item     ($2.94)   ($1.22)     ($3.84)     ($0.57)
 
     Extraordinary item - gain on
      early retirement
       of debt, net of applicable
        income taxes - Diluted         0.00      0.00        0.00        0.01
 
     Diluted net income (loss) per
      share                          ($2.94)   ($1.22)     ($3.84)     ($0.56)
 
     Diluted weighted average
      shares outstanding             50,501    50,748      50,501      51,668
 
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SOURCE CKE Restaurants, Inc.
    ANAHEIM, Calif., April 24 /PRNewswire Interactive News Release/ -- CKE
 Restaurants, Inc. (NYSE:   CKR) ("CKE") today announced the results for the
 12 and 52 weeks ended January 29, 2001.  Operating results for the prior-year
 ending January 31, 2000 include 53 weeks.  All income (loss) per share amounts
 are stated on a diluted basis.
 
     SUMMARY RESULTS
     Results for CKE's fourth quarter and fiscal year are summarized in the
 table below.  Pro-forma amounts are shown after applicable taxes as if the
 company had (1) not recorded the special charges and (2) was able to record a
 tax asset in fiscal year 2001, as it had been able to in the prior fiscal
 year.
 
 
                                 (Dollars in millions, except per share data)
                                     2001 Quarter           2000 Quarter
                                  Dollars       EPS        Dollars      EPS
      Reported net loss          $(148.3)     $(2.94)      $(61.8)    $(1.22)
      Special charges and tax
       valuation reserve, net     (129.1)      (2.56)       (49.3)     (0.97)
      Pro forma (loss)            $(19.2)     $(0.38)      $(12.5)    $(0.25)
 
 
                                   2001 Fiscal Year         2000 Fiscal Year
                                  Dollars         EPS      Dollars        EPS
      Reported net loss          $(194.1)     $(3.84)       $(29.0)    $(0.56)
      Special charges and tax
       valuation reserve, net     (161.6)      (3.20)        (49.3)     (0.95)
      Pro forma (loss) income     $(32.5)     $(0.64)        $20.3      $0.39
 
 
     EXECUTIVE COMMENTARY
     "Without a doubt, fiscal 2001 was a very challenging year," said Andrew F.
 Puzder, CKE's president and chief executive officer.  "When I took over as CEO
 and President in September 2000, I knew that we had three tremendous quick
 service brands, but that we had to successfully execute several major
 initiatives to return to profitability.  Those initiatives include the turn-
 around of Hardee's operations, the need to significantly reduce our leverage
 and the need to reduce our expenses.   Although not reflected in our year-end
 numbers, there are efforts underway that we believe will help us complete
 these initiatives and return to profitability.
     "In November 2000, we introduced a new operations improvement program at
 Hardee's, 'Operations QSC -- Quality, Service, Cleanliness,' and we have been
 encouraged by the progress made to-date.  We have launched our 'Come on Home'
 advertising campaign at Hardee's and are introducing nostalgic products from
 Hardee's past.
     "We sold approximately 400 Hardee's and Carl's Jr. stores and generated
 $137.8 million of proceeds to pay down the bank facility.  Today, we have
 approximately $135.0 million outstanding, down from almost $300.0 million a
 little over a year ago.  With the sale of Taco Bueno, we will be able to
 reduce our senior credit facility borrowings to substantially below
 $100 million.  We intend to refinance the facility by the end of the fiscal
 year.
     "As we sell stores, we are focused on reducing general and administrative
 expenses and streamlining corporate business processes to achieve additional
 savings.
     "As shown in the pro-forma analysis on page one of this press release, the
 majority of our net loss for the fourth quarter was due to the charges
 associated with our need to close down additional stores, principally
 Hardees's, and a one-time charge to write-off our tax asset.  We carefully
 analyzed stores whose prospects for future profit were minimal and decided to
 close those stores to maximize our operating profitability on a going-forward
 basis.
     "Carl's Jr. is performing extremely well, but there is no silver bullet to
 turn around Hardee's.  We believe our debt reduction strategy and focus on
 rebuilding the Hardee's brand, each of which will take time to fully
 implement, will pave the way for our return to profitability."
 
     FINANCIAL REVIEW
     Comments regarding the fourth quarter results are as follows:
 
     --  During the fourth quarter of fiscal 2001, the Company recorded a
         special pre-tax net charge of $97.0 million and a tax valuation
         reserve of $70.2 million.  The tax valuation reserve relates to the
         company no longer recording a tax asset for net operating loss carry
         forwards.  Recording the tax valuation reserve had the effect of
         reducing the tax benefit of the operating loss shown in the statement
         of operations.  The special charge, which was primarily non-cash in
         nature, consisted of (a) a $19.1 million store closure reserve for
         approximately 80 Hardee's and approximately 20 Carl's Jr. restaurants
         that the Company has closed or plans to close, (b) an impairment
         charge of $76.8 million for certain restaurants that that the Company
         will close or for restaurants that the Company plans to continue to
         operate but for which the net book value is not supported by future
         estimated cash flows, (c) a $3.7 million strengthening to the Carl's
         Jr. self insurance reserves, (d) a credit for a net $11.3 million gain
         on the sale of restaurants sold to franchisees and (e) a loss of
         $8.7 million on the sale of Taco Bueno.
 
     --  During the fourth quarter of fiscal 2000, the Company recorded a
         special pre-tax net charge of  $80.3 million.  The charge, which was
         primarily non-cash in nature, consisted of (a) $42.0 million for a
         store-closure reserve and asset impairment charge for approximately
         105 Hardee's, (b) an impairment charge of $37.3 million to write-down
         the Company's various long-term investments in other restaurant
         concepts to fair market value, (c) $2.1 million of restructuring
         charges in connection with consolidating certain administrative
         functions from Rocky Mount, N.C. to Anaheim, CA, (d) writing-off
         $3.6 million of deferred financing costs as of result of a commitment
         decrease in the Company's senior credit facility, (e) $2.6 million of
         Y2K expenses associated with restaurant computer systems, (f) writing-
         off $6.6 million in charges related to software that will not be
         implemented, (g) an additional $1.7 million in vacation expense in
         connection with a change in vacation policy, (h) writing-off
         $0.9 million in site costs for restaurants that will not be developed
         (i) a gain on the sale of Carl's Jr. and Hardee's restaurants of
         $19.5 million and (j) other miscellaneous adjustments of $3.0 million.
 
     --  Revenues for the 12 weeks ended January 29, 2001 decreased
         $121.3 million, or 25.5 percent, to $354.2 million as compared with
         the 13-week prior-year fourth quarter.  Carl's Jr. represented
         $17.3 million of the revenue decrease; Taco Bueno's revenues decreased
         by $0.9 million as compared with the prior-year quarter; and Hardee's
         revenues decreased $103.0 million.  These decreases are primarily due
         to the sale of approximately 400 Company operated stores to
         franchisees as well as the closure of approximately 120 company-
         operated stores.  While revenues from company operated stores are down
         $130.0 million, franchised and licensed restaurant revenues are up
         $8.7 million.
 
     --  Carl's Jr. restaurant level margins, excluding store closure and asset
         impairment charges of $10.9 million associated with approximately
         20 stores primarily in Oklahoma and the strengthening of self-
         insurance reserves, were 19.2 percent, compared to the prior year
         margins of 20.3 percent or down 1.1 percent.  Hardee's Company-
         operated restaurant-level margins, excluding the $85.0 million store
         closure and asset impairment charges, were 2.8 percent in the fourth
         quarter of fiscal 2001 as compared with 8.6 percent in the prior year,
         excluding similar charges.  Taco Bueno's restaurant-level margins were
         18.6 percent, down 2.7 percent from the prior year.  Overall, labor
         costs were affected by increased hourly wages resulting from the
         tightening job market and a concerted effort to increase staffing
         level to provide better guest service.  Occupancy and other operating
         costs increased for Hardee's as a result of additional depreciation
         expense associated with the "Star Hardee's" remodel program and
         declining average unit volumes.  At Carl's Jr., occupancy and other
         operating expenses increased primarily as a result of additional
         depreciation expense on the new units built during fiscal 2000 and
         increased repair and maintenance expense.  Finally, the decline in
         Hardee's same store sales contributed to the decline in its restaurant
         margins.
 
     --  Company-operated Carl's Jr. same-store sales remained relatively flat
         for the fourth quarter.  Company-operated Hardee's same-store sales
         were down 10.7 percent.  Same-store sales at Taco Bueno decreased
         2.0 percent for the quarter.
 
     Comments regarding the fiscal year results are as follows:
 
     --  During the current year, the Company recorded a pre-tax special charge
         of $151.1 million and a tax valuation reserve of  $70.2 million.
         These special charge consisted of (a) store closure and asset
         impairment charges of $98.3 million, (b) strengthening of self
         insurance reserves of $6.4 million, (c) net losses of $37.7 million on
         sales of restaurants to franchisees in fiscal 2001 and (d) a loss of
         $8.7 million on the sale of Taco Bueno.  For the prior fiscal year,
         the special charge was recorded in the fourth quarter as discussed
         above.
 
     --  Revenues for the 52 weeks decreased to $1.785 billion, down
         $205.5 million, or 10.3 percent, from the prior year 53-week period.
         Revenues increased $19.0 million, or 2.7 percent, for the Carl's Jr.
         chain.  Hardee's revenues decreased $229.3 million, or 24.4 percent.
         Revenues for the Taco Bueno chain increased $5.4 million, or
         5.8 percent, as compared with the prior year.  While revenues from
         company operated restaurants decreased $245.2 million, revenue from
         franchised and licensed restaurants increased $39.7 million.
 
     --  Carl's Jr. restaurant level margins, excluding store closure and asset
         impairment charges and increases to self-insurance reserves, were
         20.4 percent, compared to the prior year margins of 22.8 percent or
         down 2.4 percent.  Hardee's restaurant-level margins, excluding the
         store closure and asset impairment charges, were 7.6 percent.
         Restaurant-level margins at Taco Bueno were 21.2 percent, down
         3.3 percent from 24.5 percent in the prior year-to-date period,
         excluding similar adjustments made in the prior year.
 
     --  Company-operated Carl's Jr. same-store sales were up 1.8 percent.
         Company-operated Hardee's same-store sales were down 7.6 percent.
         Same-store sales at Taco Bueno decreased 1.8 percent for the quarter.
 
     SAFE HARBOR DISCLOSURE
     Matters discussed in this news release contain certain forward-looking
 statements that are based on management's beliefs and assumptions based on
 information currently known to CKE's management.  Forward-looking statements
 may include, but are not limited to, descriptions of plans or objectives of
 CKE's management for future or past operations, products or services, earnings
 or other measures of economic performance including statements of
 profitability of business segments and subsidiaries, estimates of
 recoverability of long-lived assets, current bank relationships, and current
 restructuring efforts.  Such statements reflect the view of CKE's management
 with respect to future events and are subject to risks and uncertainties, such
 as changes in the fast food industry and changes to CKE's plans, objectives,
 expectations and intentions.  Should one or more of these risks materialize or
 should underlying beliefs or assumptions prove incorrect, the company's actual
 results could differ materially from those discussed in the news release.
 Factors that could cause or contribute to such differences are changes in
 product demand and market acceptance of the company's current and future
 products, changes in economic conditions, the impact of competitive products
 and pricing, changes in the company's suppliers' ability to provide quality
 and timely products to the company, the status of the company's bank
 relationships, and other factors as discussed in CKE's filings with the
 Securities and Exchange Commission.
     Forward-looking statements speak only as of the date they are made.  CKE
 does not undertake to update forward-looking statements to reflect
 circumstances or events that occur after the date the forward-looking
 statements are made.  Without limiting the foregoing, CKE undertakes no
 obligation to update earnings guidance including any of the factors that
 influence earnings.
     CKE Restaurants, Inc., through its subsidiaries, franchisees and
 licensees, operates more than 3700 quick-service restaurants, including
 970 Carl's Jr. restaurants located in 13 Western states and Mexico;
 2603 Hardee's restaurants in 32 states and 11 foreign countries; and 125 Taco
 Bueno restaurants in Texas and Oklahoma.
 
 
                               CKE RESTAURANTS, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In thousands except per share data)
 
 
                                   Twelve     Thirteen  Fifty-two  Fifty-three
                                    Weeks       Weeks     Weeks      Weeks
                                    Ended       Ended     Ended      Ended
                                January 29, January 31, January 29, January 31,
                                     2001       2000      2001        2000
 
     Revenues:
       Company-operated
        restaurants                $299,026  $429,008  $1,569,504  $1,814,695
       Franchised and licensed
        restaurants                  55,183    46,460     215,078     175,378
               Total revenues       354,209   475,468   1,784,582   1,990,073
 
     Operating costs and expenses:
       Restaurant operations:
         Food and packaging          90,534   135,580     484,440     553,451
         Payroll and other
          employee benefits         106,545   139,454     514,535     566,394
         Occupancy and other
          operating expenses         72,825    96,438     367,235     383,144
         Store closure expense and
          asset impairment charge    95,885    41,988      98,285      41,988
                                    365,789   413,460   1,464,495   1,544,977
 
       Franchised and licensed
        restaurants                  45,521    34,784     161,171     128,128
       Advertising expenses          20,859    32,967     100,199     121,727
       General and administrative
        expenses                     35,899    44,513     145,376     147,372
       Loss (gain) on property
        sold or held for sale        (2,554)  (19,531)     46,356     (15,186)
               Total operating
                costs and expenses  465,514   506,193   1,917,597   1,927,018
 
     Operating income (loss)       (111,305)  (30,725)   (133,015)     63,055
 
     Interest expense               (16,252)  (20,315)    (69,762)    (63,283)
     Other income (expense), net     (1,403)  (49,667)     (2,487)    (47,232)
 
     Income (loss) before income
      taxes and
       extraordinary item          (128,960) (100,707)   (205,264)    (47,460)
 
     Income tax expense (benefit)    19,346   (38,865)    (11,148)    (18,053)
 
     Net income (loss) before
      extraordinary item           (148,306)  (61,842)   (194,116)    (29,407)
 
     Extraordinary item - gain on
      early retirement
       of debt, net of applicable
        income tax
       expense                            0         0           0         290
 
     Net income (loss)            ($148,306) ($61,842)  ($194,116)   ($29,117)
 
     Basic net income (loss) per
      common share
       before extraordinary item     ($2.94)   ($1.22)     ($3.84)     ($0.57)
 
     Extraordinary item - gain on
      early retirement
       of debt, net of applicable
        income taxes - Basic           0.00      0.00        0.00        0.01
 
     Basic net income (loss) per
      share                          ($2.94)   ($1.22)     ($3.84)     ($0.56)
 
     Basic weighted average shares
      outstanding                    50,501    50,748      50,501      51,668
 
     Diluted net income (loss) per
      common share
       before extraordinary item     ($2.94)   ($1.22)     ($3.84)     ($0.57)
 
     Extraordinary item - gain on
      early retirement
       of debt, net of applicable
        income taxes - Diluted         0.00      0.00        0.00        0.01
 
     Diluted net income (loss) per
      share                          ($2.94)   ($1.22)     ($3.84)     ($0.56)
 
     Diluted weighted average
      shares outstanding             50,501    50,748      50,501      51,668
 
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 SOURCE  CKE Restaurants, Inc.