CKE Restaurants, Inc. announced today that it has been selected for inclusion in the Russell 3000 Index, according to a preliminary list issued by the Frank Russell Company. The newly reconstituted Russell 3000 Index, which contains the largest 3,000 companies incorporated in the United States and its territories ranked by total market capitalization, will go into effect July 1, 2002 and remain in place for one year. Membership in the Russell 3000 means automatic inclusion in either the large-cap Russell 1000® Index or small-cap Russell 2000® Index.
Andrew F. Puzder, president and CEO of CKE said, “Inclusion in the Russell 3000 is a significant milestone for CKE and we believe reflective of the actions we’ve undertaken to restore the company to profitability and increase shareholder value. Over the past year, we’ve realized a nearly four-fold increase in our stock price..”
Membership in Russell’s 21 U.S. equity indexes is determined strictly by market capitalization rankings and style attributes rather than by subjective opinion or committee decisions. Russell indexes are widely used by managers for index funds and as benchmarks for both passive and active investment strategies. About $250 billion is invested in index funds based on Russell’s indexes and an additional $850 billion is benchmarked to them. Investment managers who oversee these funds purchase shares of member stocks according to that company’s weighting in the particular index.
The annual reconstitution of Russell’s 21 U.S. equity indexes captures the 3,000 largest U.S. stocks as of May 31st, ranking them by market capitalization to create the broad-market Russell 3000 Index. The largest 1,000 companies in the ranking will comprise the large-cap Russell 1000 Index while the remaining 2,000 companies will comprise the small-cap Russell 2000 Index. The final membership lists for the Russell 3000, Russell 1000 and Russell 2000 will be posted by July 9, 2002 on www.russell.com .