CARPINTERIA, Calif., Oct. 30 /PRNewswire-FirstCall/ -- CKE Restaurants, Inc. announced today the sale of 26 restaurants as part of its ongoing strategic refranchising program that was originally announced in April, 2007. The initiative is expected to involve approximately 200 Hardee's restaurant locations in a number of markets across the Midwest and Southeast. To date, the Company has sold 106 restaurants to franchisees and secured commitments for 44 new franchise restaurants under development agreements for those markets.
The Company most recently completed the sale of 26 restaurants in the Peoria and Quincy, Illinois markets to Shree Krishna Food, LLC. Shree Krishna has also committed to build six new Hardee's restaurant locations in these markets over the next six years. The transaction was brokered by Franchise Resale Consultants, LLC, d/b/a Praetorian Group.
"We are excited to take over 26 Hardee's locations in the Peoria and Quincy markets and look forward to developing new locations in the coming years" said Shree Krishna President Sam Patel. "We will be working hard with Hardee's to continue its success with the Thickburger Revolution."
The Company's president and chief executive officer Andrew F. Puzder commented, "We are very pleased to continue our strategic refranchising program with the sale of 26 restaurants in Peoria and Quincy, Illinois to a new Hardee's franchisee, Shree Krishna Food, LLC. This transaction allows us to further concentrate our focus on growing our core markets, while at the same time accelerating unit development in our franchise markets. Our ability to attract new franchisees to Hardee's reflects the significant progress we have made in the brand over the past few years. We look forward to continuing to secure additional refranchising and development commitments from new and existing franchisees in our Hardee's footprint, and to the brand's continued growth."
As of the end of its fiscal 2008 second quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,036 franchised, licensed or company-operated restaurants in 42 states and in 13 countries, including 1,111 Carl's Jr. restaurants and 1,909 Hardee's 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.
