1 EXHBIT 12-1 2 EXHIBIT 12-1 CARL KARCHER ENTERPRISES, INC. COMPUTATION OF RATIO OF DEBT TO EQUITY FISCAL YEAR ENDED JANUARY 31, ------------------------------------------------------------ 1994 1993 1992 1991 1990 -------- --------- --------- --------- --------- (DOLLARS IN THOUSANDS) Debt: Current portion of long-term debt.......................... $ 13,207 $ 28,467 $ 29,759 $ 30,554 $ 27,892 Current portion of capital lease obligations................... 3,354 3,158 2,959 2,251 1,914 -------- --------- --------- --------- --------- 16,561 31,625 32,718 32,805 29,806 -------- --------- --------- --------- --------- Long-term debt................... 17,414 31,742 50,485 58,297 67,652 Capital lease obligations........ 45,886 48,512 51,589 58,840 56,985 -------- --------- --------- --------- --------- 63,300 80,254 102,074 117,137 124,637 -------- --------- --------- --------- --------- $ 79,861 $ 111,879 $ 134,782 $ 149,942 $ 154,443 -------- --------- --------- --------- --------- -------- --------- --------- --------- --------- Shareholders' equity: Common stock..................... $ 33,928 $ 28,793 $ 26,788 $ 27,532 $ 26,948 Retained earnings................ 58,148 55,939 62,891 51,286 39,684 -------- --------- --------- --------- --------- $ 92,076 $ 84,732 $ 89,679 $ 78,818 $ 66,632 -------- --------- --------- --------- --------- -------- --------- --------- --------- --------- Ratio of debt to equity............ 0.9x 1.3x 1.5x 1.9x 2.3x -------- --------- --------- --------- --------- -------- --------- --------- --------- ---------