CARPINTERIA, Calif., Dec. 29 /PRNewswire-FirstCall/ -- CKE Restaurants, Inc. , owner, operator and franchisor of the Carl's Jr. (R), Hardee's(R) and La Salsa Fresh Mexican Grill(R) restaurant brands, announced today that it has repurchased two million shares of its common stock from its largest shareholder, Pirate Capital, LLC. The purchase price of $18.53 per share reflects the closing price of the Company's common stock on Dec. 28, 2006. The Company used its revolving credit facility to fund the approximately $37.1 million total purchase price. The purchase was completed through a privately negotiated transaction under the Company's previously announced stock repurchase program. Following the transaction, and based on Pirate Capital's most recent filing on Schedule 13D, Pirate Capital's ownership stake in the Company is approximately 5,048,000 shares, or about 7.2% of the total shares outstanding as of Dec. 29, 2006.
Andrew F. Puzder, president and chief executive officer of CKE Restaurants, Inc., said, "We are very pleased to be able to execute this transaction, which represents nearly three percent of our outstanding common shares. Our improved operating results and reduced debt balance have given us the financial flexibility to execute such a transaction. As was the case with the recent conversions of over 85% of our convertible notes into equity, we remain poised to take advantage of opportunities to increase shareholder value."
During fiscal 2007, the Company has repurchased over 4.5 million shares under its stock repurchase program at a cost of approximately $79.3 million or approximately $17.56 per share.
As of the third fiscal 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. 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, effectiveness of operating and product initiatives and advertising and promotional efforts (particularly at the Hardee's brand), changes in economic conditions, changes in the price or availability of commodities, availability and cost of energy, workers' compensation, employee health insurance costs 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 our strategy, availability of financing for the Company and its franchisees, unfavorable outcomes on litigation, changes in accounting policies and practices, new legislation or government regulation (including environmental laws), the availability of suitable locations and terms for the sites designed 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.
