121 Hardee's Sold to Franchisees

CKE Restaurants, Inc [7]. (NYSE: CKR), parent of Hardee's Food Systems, Inc., announced July 25 that the company has sold an additional 121 Hardee's restaurants to franchisees in two separate transactions for approximately $37 million. The larger transaction for 112 restaurants and approximately $35 million was in the greater Georgia market, which includes some units in Alabama and Florida. In a separate transaction, nine restaurants in the Greenville, N.C. area were sold for approximately $2 million.

The buyer of the 112 restaurants in the Georgia market formerly was associated with another burger quick-service restaurant chain. The buyer of the Greenville market is a former employee of Hardee's, who had been honored a District Manager of the Year. Both new franchisees bring substantial restaurant operating experience and a new perspective to the Hardee's system and reflect the confidence in the initiatives underway at Hardee's.

"At the beginning of the year we indicated that our objective was to sell at least 500 Hardee's restaurants to franchisees this year and raise $200 million, including $50 million through July," said Tom Thompson, CKE's president and chief operating officer. "These 121 Hardee's restaurants, along with 21 restaurants sold earlier this year, give us a total of 142 units sold year to date and approximately $50 million raised. Since the outset of the Hardee's refranchising program, we have sold 203 Hardee's locations to franchisees and raised approximately $68 million."

Praetorian Group identified the buyer in the Georgia transaction, assisted in the negotiation and arranged financing for the deal. Praetorian Group also is assisting Hardee's in selected transactions to sell company-operated restaurants in certain markets to multiple unit restaurant operators. American Commercial Capital financed and structured both transactions for the buyers.

CKE Restaurants, Inc., through its subsidiaries, franchisees and licensees, operates more than 3,800 quick-service restaurants, including 953 Carl's Jr. restaurants in 13 Western states and Mexico; 2,768 Hardee's restaurants in 37 states and 11 foreign countries; and 124 Taco Bueno restaurants in Texas and Oklahoma.