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EXHIBIT 99.1
NEWS RELEASE
FOR: CKE Restaurants, Inc.
CONTACTS: Loren Pannier CKE RESTAURANTS
CKE Restaurants, Inc. 1200 N. Harbor Blvd.
714.778.7109 P.O. Box 4349
Anaheim, California
Coleman Sullivan 92803-4349
Hardee's Food Systems, Inc. 714-774-5796
919.450.8200 714-778-7183
Peter McBride
Imasco Limited
514.982.6407
FOR IMMEDIATE RELEASE
CKE RESTAURANTS, INC. ANNOUNCES
ACQUISITION OF HARDEE'S FOOD SYSTEMS, INC.
ANAHEIM, Calif. -- April 28, 1997 -- CKE Restaurants, Inc. (NYSE:CKR)
operator of the Carl's Jr. quick-service hamburger chain announced the signing
of an agreement by which CKE will purchase Hardee's Food Systems, Inc.,
operator of Hardee's quick-service restaurants, from Imasco Holdings Inc., a
Delaware corporation and wholly owned subsidiary of Montreal-based Imasco
Limited. Under the terms of the agreement, CKE will pay the net book value of
the assets acquired as of the date of closing, after giving effect to certain
reserve adjustments. As of March 31, 1997, the net book value of 788
company-operated and 2,364 franchised Hardee's restaurants was $327 million.
"This is a strong marriage of two well-known brands with a combined 90
years experience in the restaurant business," said William P. Foley II, CKE's
chairman and chief executive officer. "Teaming Carl's Jr.'s big, juicy
charbroiled burgers with Hardee's superior breakfasts enables us to showcase
each chain's strengths. By dual branding the concepts, Carl's Jr. can enter
established markets beyond the West Coast with our premium burgers and chicken
sandwiches, while featuring Hardee's famous Made From Scratch(TM) Biscuits and
other breakfast items."
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"This is a great opportunity for our customers, franchisees, and
employees," said H. Stephen McManus, president and chief executive officer of
Hardee's. "We look forward to working with the CKE team, which has a strong
track record in our business. These two brands are an excellent fit, in
geography as well as menu."
The combination of Carl's Jr. and Hardee's brands will create a
national chain of hamburger quick-service restaurants that stretches coast to
coast. Hardee's 3,152 restaurants are located in 40 states, primarily in the
southeast and midwest United States, and 10 foreign countries. The chain is
ranked either number one or two by market share in half of the markets in which
it operates. Carl's Jr., with more than 550 of its 676 restaurants located in
California, ranks number two in market share throughout most of the state.
Immediate plans include the dual branding of Hardee's restaurants with
Carl's Jr. restaurants in two separate test markets that will serve the
Hardee's breakfast menu and Carl's Jr. lunch and dinner offerings. The
conversion process for two test markets - Peoria, Illinois and a second market
yet to be determined - is expected to take four to six months. It is
anticipated that the test markets will include more than 50 Hardee's locations
and that the test markets will be in designated marketing areas in which
Hardee's has an adequate presence to assure significant media coverage. During
the test period, the balance of the Hardee's system will begin offering new
products based upon Carl's Jr. menu offerings.
"We look forward to working together with Steve McManus and his
management team in helping Hardee's to earnings recovery through major
improvements in store-level margins by increasing sales and operating more
efficiently," stated Tom Thompson, president and chief operating officer of
CKE. "We also foresee other significant operating synergies, including enhanced
marketing and media buying power, leveraged purchasing power, and reduced costs
associated with shared technologies and administrative functions."
Carl's Jr.'s average unit volumes are $1.123 million, the second
highest in the hamburger quick-service segment, with breakfast comprising
approximately 10 percent of sales. Hardee's system-wide average unit volumes
are $918,000 with approximately 30 percent of sales
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during breakfast - the highest in the quick-service segment. For the last
fiscal year, restaurant system-wide sales were $2.98 billion for Hardee's and
$742 million for CKE Restaurants, Inc.
CKE Restaurants, Inc. is the parent of Carl Karcher Enterprises, Inc.,
Casa Bonita Incorporated and Summit Family Restaurants Inc. and operates a
total of 928 restaurants under several brands. Carl Karcher Enterprises, Inc.,
along with its franchisees and licensees, operates 676 Carl's Jr. and 26
Rally's quick-service restaurants, including 68 Carl's Jr./Green Burrito
dual-brand locations, primarily located in California, Nevada, Oregon, Arizona,
Mexico and the Pacific Rim. Casa Bonita Incorporated operates 107 Taco Bueno
quick-service restaurants in Texas and Oklahoma and two Casa Bonita
restaurants in Colorado and Oklahoma. Summit Family Restaurants Inc. has
restaurant operations in nine Western state,s including 73 Company-operated and
22 franchised JB's Restaurants, 16 HomeTown Buffet restaurants and six Galaxy
Diner restaurants.
This press release contains forward-looking statements, including but
not limited to those regarding the proposed acquisition of Hardee's by CKE, and
the integration of their respective operations. Actual results could vary
materially from the descriptions contained herein due to many factors, including
changing market conditions, competitive factors in the quick-service restaurant
industry and other factors detailed in the Company's Securities and Exchange
Commission filings. CKE does not undertake any obligation to update the
information contained herein, which speaks only as of this date.
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