Exhibit 12.1
CKE RESTAURANTS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
(Unaudited)
Successor | Predecessor | |||||||||||||||||||||||||
Fiscal 2012 | Twenty-Nine Weeks Ended January 31, 2011 | Twenty-Four Weeks Ended July 12, 2010 | Fiscal 2010 | Fiscal 2009 | Fiscal 2008 | |||||||||||||||||||||
Earnings(1): | ||||||||||||||||||||||||||
(Loss) income before income taxes and discontinued operations | $ | (11,340 | ) | $ | (39,301 | ) | $ | 257 | $ | 63,176 | $ | 58,489 | $ | 59,731 | ||||||||||||
Fixed charges | 109,493 | 61,523 | 22,973 | 50,413 | 59,977 | 64,291 | ||||||||||||||||||||
Less: capitalized interest | (461 | ) | (414 | ) | (282 | ) | (766 | ) | (1,294 | ) | (2,059 | ) | ||||||||||||||
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$ | 97,692 | $ | 21,808 | $ | 22,948 | $ | 112,823 | $ | 117,172 | $ | 121,963 | |||||||||||||||
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Fixed charges(2): | ||||||||||||||||||||||||||
Interest expense | $ | 77,366 | $ | 43,681 | $ | 8,617 | $ | 19,254 | $ | 28,609 | $ | 33,033 | ||||||||||||||
Capitalized interest | 461 | 414 | 282 | 766 | 1,294 | 2,059 | ||||||||||||||||||||
Interest component of rent expense | 31,666 | 17,428 | 14,074 | 30,393 | 30,074 | 29,199 | ||||||||||||||||||||
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$ | 109,493 | $ | 61,523 | $ | 22,973 | $ | 50,413 | $ | 59,977 | $ | 64,291 | |||||||||||||||
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Ratio of earnings to fixed charges | — | — | — | 2.2 | 2.0 | 1.9 | ||||||||||||||||||||
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Deficiency (if fixed charges exceed earnings) | $ | (11,801 | ) | $ | (39,715 | ) | $ | (25 | ) | $ | — | $ | — | $ | — | |||||||||||
Rent expense | 94,999 | 52,285 | 42,221 | 91,178 | 90,221 | 87,597 | ||||||||||||||||||||
Interest component (1/3 of rent expense) | 31,666 | 17,428 | 14,074 | 30,393 | 30,074 | 29,199 |
(1) | “Earnings” consists of (loss) income before income taxes and discontinued operations plus fixed charges less capitalized interest. |
(2) | “Fixed charges” include interest both expensed and capitalized, amortized discounts and capitalized expenses related to indebtedness and an estimate of the interest within rental expense. |