1 EXHIBIT 11 CKE RESTAURANTS, INC. AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (In thousands except per share amounts) Twelve Weeks Ended Forty Weeks Ended ------------------------ ------------------------- November 1, November 2, November 1, November 2, 1999 1998 1999 1998 ---------- ---------- ---------- ---------- BASIC EARNINGS PER SHARE Income before extraordinary item $ 3,007 $16,146 $32,435 $61,482 Extraordinary item - gain on early retirement of debt, net of applicable income taxes -- 2,738 290 2,738 ------- ------- ------- ------- Net income $ 3,007 $18,884 $32,725 $64,220 ======= ======= ======= ======= Weighted average number of common shares outstanding during the period 52,054 51,816 51,974 51,516 ======= ======= ======= ======= Basic earnings per share before extraordinary item $ 0.06 $ 0.31 $ 0.62 $ 1.19 Extraordinary item - gain on early retirement of debt, net of applicable income taxes - basic -- 0.05 0.01 0.05 ------- ------- ------- ------- Basic net income per share $ 0.06 $ 0.36 $ 0.63 $ 1.24 ======= ======= ======= ======= DILUTED EARNINGS PER SHARE Income before extraordinary item $ 3,007 $16,146 $32,435 $61,482 Interest expense and amortization of debt issuance costs, net of income tax effect applicable to convertible subordinated notes -- 1,242 -- 3,559 ------- ------- ------- ------- Diluted income before extraordinary item $ 3,007 $17,388 $32,435 $65,041 Extraordinary item - gain on early retirement of debt, net of applicable income taxes -- 2,738 290 2,738 ------- ------- ------- ------- Diluted net income $ 3,007 $20,126 $32,725 $67,779 ======= ======= ======= ======= Weighted average number of common shares outstanding during the period 52,054 51,816 51,974 51,516 Incremental common shares attributable to: Exercise of outstanding options 185 1,112 523 1,458 Conversion of convertible subordinated notes -- 4,248 -- 3,800 ------- ------- ------- ------- Total shares 52,239 57,176 52,497 56,774 ======= ======= ======= ======= Diluted net income per share before extraordinary item $ 0.06 $ 0.31 $ 0.62 $ 1.15 Extraordinary item - gain on early retirement of debt, net of applicable income taxes - diluted -- 0.04 -- 0.04 ------- ------- ------- ------- Diluted earnings per share $ 0.06 $ 0.35 $ 0.62 $ 1.19 ======= ======= ======= =======