Commenting on the company’s performance, Andrew F. Puzder, president and chief executive officer, says, “We are encouraged that same-store sales at Carl’s Jr. continue to climb, and despite the negative comp at Hardee’s, are pleased with the performance of the brand as it rolls over strong numbers from the prior year period. Carl’s Jr. has maintained positive comps for 27 consecutive periods as well as positive same-store sales for the first quarter of the new fiscal year.

“Carl’s Jr. continued advertising the new Spicy BBQ Six Dollar Burger and its unique breakfast offering, the Breakfast Burger, during period four.” Puzder continues, “These products helped drive the positive same-store sales for the period, and on a two-year cumulative basis, Carl’s Jr. same-store sales were up approximately 10.9 percent. For the 21st consecutive period, average unit volumes were higher than any comparable period in at least a decade.” Puzder adds that the media frenzy surrounding the new Paris Hilton advertising for The Spicy BBQ Six Dollar Burger at Carl’s Jr. did not begin until the last few days of period four. Revenue for the first quarter, from company-operated Carl’s Jr. restaurants (exclusive of all franchise-related revenue and royalties), was approximately $176.9 million.

“During period four, Hardee’s continued to roll out the new Hand-Scooped Ice Cream Shakes & Malts system wide and continued to promote the new Frisco Thickburger(TM). While Hardee’s same-store sales were nominally down for this period, on a two-year cumulative basis, sales were positive 10.8 percent. This was not entirely unexpected given that we experienced some of our strongest results of the prior year during period four. Same-store sales for the quarter were essentially flat. Revenue from company-operated Hardee’s restaurants for the first quarter (exclusive of all franchise-related revenue and royalties) was approximately $179.8 million.”

As of the end of its fiscal fourth quarter on Jan. 31, 2005, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,166 franchised or company-owned restaurants in 44 states and in 11 countries, including 1,014 Carl’s Jr. restaurants, 2,034 Hardee’s restaurants and 101 La Salsa Fresh Mexican Grill restaurants.

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