CKE Restaurants, Inc. (NYSE: CKR) announces the results for the 12 and 52 weeks ended January 29, 2001. Operating results for the
prior-year ending January 31, 2000 include 53 weeks. All income (loss) per share amounts are stated on a diluted
basis.

“Without a doubt, fiscal 2001 was a very challenging year,” said Andrew Puzder, CKE’s president and chief
executive officer. “When I took over as CEO and president in September 2000, I knew that we had three
tremendous quick service brands, but that we had to successfully execute several major initiatives to return to
profitability. Those initiatives include the turn-around of Hardee’s operations, the need to significantly reduce our
leverage and the need to reduce our expenses. Although not reflected in our year-end numbers, there are efforts
underway that we believe will help us complete these initiatives and return to profitability.

“In November 2000, we introduced a new operations improvement program at Hardee’s, ‘Operations QSC—Quality, Service, Cleanliness,’ and we have been encouraged by the progress made to-date. We have launched
our ‘Come on Home’ advertising campaign at Hardee’s and are introducing nostalgic products from Hardee’s past.

“We sold approximately 400 Hardee’s and Carl’s Jr. stores and generated $137.8 million of proceeds to pay down
the bank facility. Today, we have approximately $135.0 million outstanding, down from almost $300.0 million a little
over a year ago. With the sale of Taco Bueno, we will be able to reduce our senior credit facility borrowings to
substantially below $100 million. We intend to refinance the facility by the end of the fiscal year.

“As we sell stores, we are focused on reducing general and administrative expenses and streamlining corporate
business processes to achieve additional savings.

“As shown in the pro-forma analysis on page one of this press release, the majority of our net loss for the fourth
quarter was due to the charges associated with our need to close down additional stores, principally Hardees’s,
and a one-time charge to write-off our tax asset. We carefully analyzed stores whose prospects for future profit
were minimal and decided to close those stores to maximize our operating profitability on a going-forward basis.

“Carl’s Jr. is performing extremely well, but there is no silver bullet to turn around Hardee’s. We believe our debt
reduction strategy and focus on rebuilding the Hardee’s brand, each of which will take time to fully implement, will
pave the way for our return to profitability.”

FINANCIAL REVIEW

Comments regarding the fourth quarter results are as follows:

• During the fourth quarter of fiscal 2001, the Company recorded a
special pre-tax net charge of $97.0 million and a tax valuation
reserve of $70.2 million. The tax valuation reserve relates to the
company no longer recording a tax asset for net operating loss carry
forwards. Recording the tax valuation reserve had the effect of
reducing the tax benefit of the operating loss shown in the statement
of operations. The special charge, which was primarily non-cash in
nature, consisted of (a) a $19.1 million store closure reserve for
approximately 80 Hardee’s and approximately 20 Carl’s Jr. restaurants
that the Company has closed or plans to close, (b) an impairment
charge of $76.8 million for certain restaurants that that the Company
will close or for restaurants that the Company plans to continue to
operate but for which the net book value is not supported by future
estimated cash flows, (c) a $3.7 million strengthening to the Carl’s
Jr. self insurance reserves, (d) a credit for a net $11.3 million gain
on the sale of restaurants sold to franchisees and (e) a loss of
$8.7 million on the sale of Taco Bueno.

• During the fourth quarter of fiscal 2000, the Company recorded a
special pre-tax net charge of $80.3 million. The charge, which was
primarily non-cash in nature, consisted of (a) $42.0 million for a
store-closure reserve and asset impairment charge for approximately
105 Hardee’s, (b) an impairment charge of $37.3 million to write-down
the Company’s various long-term investments in other restaurant
concepts to fair market value, (c) $2.1 million of restructuring
charges in connection with consolidating certain administrative
functions from Rocky Mount, N.C. to Anaheim, CA, (d) writing-off
$3.6 million of deferred financing costs as of result of a commitment
decrease in the Company’s senior credit facility, (e) $2.6 million of
Y2K expenses associated with restaurant computer systems, (f) writing-
off $6.6 million in charges related to software that will not be
implemented, (g) an additional $1.7 million in vacation expense in
connection with a change in vacation policy, (h) writing-off
$0.9 million in site costs for restaurants that will not be developed
(i) a gain on the sale of Carl’s Jr. and Hardee’s restaurants of
$19.5 million and (j) other miscellaneous adjustments of $3.0 million.

• Revenues for the 12 weeks ended January 29, 2001 decreased
$121.3 million, or 25.5 percent, to $354.2 million as compared with
the 13-week prior-year fourth quarter. Carl’s Jr. represented
$17.3 million of the revenue decrease; Taco Bueno’s revenues decreased
by $0.9 million as compared with the prior-year quarter; and Hardee’s
revenues decreased $103.0 million. These decreases are primarily due
to the sale of approximately 400 Company operated stores to
franchisees as well as the closure of approximately 120 company-
operated stores. While revenues from company operated stores are down
$130.0 million, franchised and licensed restaurant revenues are up
$8.7 million.

• Carl’s Jr. restaurant level margins, excluding store closure and asset
impairment charges of $10.9 million associated with approximately
20 stores primarily in Oklahoma and the strengthening of self-
insurance reserves, were 19.2 percent, compared to the prior year
margins of 20.3 percent or down 1.1 percent. Hardee’s Company-
operated restaurant-level margins, excluding the $85.0 million store
closure and asset impairment charges, were 2.8 percent in the fourth
quarter of fiscal 2001 as compared with 8.6 percent in the prior year,
excluding similar charges. Taco Bueno’s restaurant-level margins were
18.6 percent, down 2.7 percent from the prior year. Overall, labor
costs were affected by increased hourly wages resulting from the
tightening job market and a concerted effort to increase staffing
level to provide better guest service. Occupancy and other operating
costs increased for Hardee’s as a result of additional depreciation
expense associated with the “Star Hardee’s” remodel program and
declining average unit volumes. At Carl’s Jr., occupancy and other
operating expenses increased primarily as a result of additional
depreciation expense on the new units built during fiscal 2000 and
increased repair and maintenance expense. Finally, the decline in
Hardee’s same store sales contributed to the decline in its restaurant
margins.

• Company-operated Carl’s Jr. same-store sales remained relatively flat
for the fourth quarter. Company-operated Hardee’s same-store sales
were down 10.7 percent. Same-store sales at Taco Bueno decreased
2.0 percent for the quarter.

Comments regarding the fiscal year results are as follows:

• During the current year, the Company recorded a pre-tax special charge
of $151.1 million and a tax valuation reserve of $70.2 million.
These special charge consisted of (a) store closure and asset
impairment charges of $98.3 million, (b) strengthening of self
insurance reserves of $6.4 million, (c) net losses of $37.7 million on
sales of restaurants to franchisees in fiscal 2001 and (d) a loss of
$8.7 million on the sale of Taco Bueno. For the prior fiscal year,
the special charge was recorded in the fourth quarter as discussed
above.

• Revenues for the 52 weeks decreased to $1.785 billion, down
$205.5 million, or 10.3 percent, from the prior year 53-week period.
Revenues increased $19.0 million, or 2.7 percent, for the Carl’s Jr.
chain. Hardee’s revenues decreased $229.3 million, or 24.4 percent.
Revenues for the Taco Bueno chain increased $5.4 million, or
5.8 percent, as compared with the prior year. While revenues from
company operated restaurants decreased $245.2 million, revenue from
franchised and licensed restaurants increased $39.7 million.

• Carl’s Jr. restaurant level margins, excluding store closure and asset
impairment charges and increases to self-insurance reserves, were
20.4 percent, compared to the prior year margins of 22.8 percent or
down 2.4 percent. Hardee’s restaurant-level margins, excluding the
store closure and asset impairment charges, were 7.6 percent.
Restaurant-level margins at Taco Bueno were 21.2 percent, down
3.3 percent from 24.5 percent in the prior year-to-date period,
excluding similar adjustments made in the prior year.

• Company-operated Carl’s Jr. same-store sales were up 1.8 percent.
Company-operated Hardee’s same-store sales were down 7.6 percent.
Same-store sales at Taco Bueno decreased 1.8 percent for the quarter.