CKE

Taking Stock of 2012

Quick-service restaurant shares outperformed the overall stock market in 2012.

Good Times used same store sales growth and a new breakfast menu to build stocks
Good Times used same-store sales growth and a new breakfast menu to build stocks.

Good Times Restaurants had a good time on the stock market last year. The 39-unit, Golden, Colorado–based burger chain used growing same-store sales and a new breakfast menu to help double its stock price during 2012, making the company the best equity performer among restaurant chains for the full year.

That fact is all the more impressive considering restaurant shares outperformed the overall market last year, even amidst bustling corporate activity that included mergers, acquisitions, new stock offerings, and special dividends.

Commodities in Crisis

It was a dark day in September when Britain’s National Pig Association broke the news that pork products—including everyone’s favorite, bacon—would soon become a luxury because of dwindling pork supplies from the ongoing drought in the U.S.

Though consumers around the world were left clutching their pearls, it was much ado about nothing, as economists and commodity experts quickly debunked the theory. But the media hype did turn a lot of eyes—both consumers’ and foodservice industry insiders’—to the real issue at hand: rising commodity costs.

CKE Announces Initial Public Offering

CKE Inc., parent company to Hardee's and Carl's Jr., announced today that it has commenced an initial public offering of 13,333,334 shares of its common stock at an anticipated public offering price between $14.00 and $16.00 per share.

The company is offering 6,666,667 of the shares, and 6,666,667 are being offered by the sole stockholder of the company. In addition, the underwriters have an option, exercisable within 30 days after the date of the final prospectus relating to the offering, to purchase up to an additional 2,000,000 shares from the selling stockholder.

CKE Actively Seeking Hardee’s Franchisees in Charlotte, N.C.

CKE Restaurants, Inc., announced today its intent to develop new Hardee’s restaurants throughout the Charlotte, North Carolina, area.

The company is seeking to expand its Charlotte footprint over the next several years and sees the potential to develop more than 35 new restaurants in the market. Hardee’s operates 51 locations within the Charlotte metro area.

CKE Files Brief to Fight Inflated Swipe Fees

CKE Restaurants, Inc., parent company of Carl’s Jr. and Hardee’s brands, today announced it has joined with other quick-serve restaurant and convenience store chains in filling an amicus brief in support of a lawsuit against the Federal Reserve regarding unjustifiably high swipe fees charged by major banks.

CKE and the other chains strongly support the pending lawsuit, which states that the Federal Reserve failed to follow key requirements of a 2010 law when it adopted a cap on debit card swipe fees.

HSUS Now CKE Shareholder to Encourage Egg, Pork Changes

The Humane Society of the United States (HSUS) announced that it is now a shareholder with Apollo Global Management, parent company to Carl’s Jr. and Hardee’s umbrella CKE Restaurants.

The HSUS hopes to use its position as shareholder to encourage the restaurant company to use more cage-free eggs and pork from pigs not housed in gestation crates.

Matthew Prescott, food policy director for the HSUS, says CKE was once at the front of this movement, but that it has since fallen behind the rest of the industry.

Popular Menu Proteins

As Americans’ hunger for burgers and chicken continues to grow, restaurant operators are tweaking their menus to meet consumers’ demands for new meats and higher quality.

An increasing number of limited-service restaurants have added better and more “natural” meat to their repertoires. At the same time, they are featuring other proteins.

From the growth of Angus menu items to the specialty burger craze, there has been no slowdown in sales of beef on a bun, according to a Technomic study last summer.

BoeFly: The eHarmony of Lending?

With franchisees still struggling to access the capital necessary to open new stores and run their operations, franchisors are getting help from an online service to pair operators with suitable lenders.

David Nayor, co-president and chief operating officer of BoeFly.com, says the service was concocted after he and some of his former-lender colleagues saw “a great deal of inefficiency in the lending market.”

CKE to Present at Hispanic Business Expo

CKE Restaurants Inc. will present and exhibit at the United States Hispanic Chamber of Commerce 32nd-Annual National Convention & Business Expo in Miami on September 18-21. More than 3,000 people are expected at this annual event honoring Hispanic entrepreneurship in America. The convention is the country’s largest networking venue for Hispanic businesses and Fortune 1000 corporations interested in the Hispanic market.

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