Industry News | August 29, 2007

CKE Sells 34 Company-Owned Stores in North Carolina

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CKE Restaurants, Inc. (NYSE: CKR) announced today the sale of 34 restaurants as part of its ongoing strategic refranchising program that was originally announced in April, 2007. The initiative is expected to involve approximately 200 Hardee's restaurant locations in a number of markets across the Midwest and Southeast. To date, CKE has sold 80 restaurants to franchisees and secured commitments for 38 new franchise restaurants under development agreements for those markets.

CKE most recently completed the sale of 34 restaurants in North Carolina to Boddie-Noell Enterprises, the largest Hardee's franchise operator. Boddie-Noell has also committed to build eight new Hardee's restaurant locations in these markets over the next five years.

"Our purchase of the 34 Hardee's in the Raleigh-Durham market propels us into the next phase of our expansion strategy with a brand that has momentum and the leadership to keep it going," said Boddie-Noell President and Chief Executive Officer Bill Boddie. "CKE has both engineered and led the turnaround of Hardee's over the past several years, and we have confidence in them and the Hardee's brand as we go forward."

CKE's president and chief executive officer Andrew F. Puzder commented, "We are very pleased to continue our strategic refranchising program with the sale of 34 restaurants in North Carolina to our largest Hardee's franchisee, Boddie-Noell Enterprises. For the past 45 years, we have looked to the Boddie's to help grow this brand and have never been disappointed. Boddie-Noell has been a key contributor to the revitalization of the Hardee's brand, and we view their acquisition of these restaurants as a further commitment to the brand's future and continued growth."

As of the end of its fiscal 2008 first quarter ended May 21, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,022 franchised, licensed or company-operated restaurants in 43 states and in 13 countries, including 1,101 Carl's Jr. restaurants and 1,905 Hardee's restaurants.