First Carl's Jr. Restaurants Open in the Russian Federation
Oct 9, 2006
First Two of 50 Franchise Restaurants Open in St. Petersburg
CARPINTERIA, Calif., Oct. 9 -- CKE Restaurants, Inc. (NYSE: CKR) announced today that the first two restaurants of its subsidiary hamburger chain, Carl's Jr.®, have opened in the Russian Federation. The franchise restaurants opened in St. Petersburg over the weekend and are the first two of 50 that will be opened over the next eight years as per an agreement inked with Russia-based franchisees Bright Star LLC last year.
"We are so pleased to see Bright Star LLC open their first Carl's Jr. franchise restaurants in the Russian Federation. This is a dynamic, emerging market with a strong appetite for western food, and the premium hamburgers offered at Carl's Jr. will be a perfect fit," said Ned Lyerly, senior vice president of global franchise development for CKE Restaurants, Inc. "We are equally pleased to have such a strong partner in Bright Star LLC -- their knowledge of the Russian foodservice market and their passion for the Carl's Jr. brand are a winning combination."
Global franchise development for CKE Restaurants, Inc. subsidiary chains Carl's Jr. and Hardee's® is a focus for the company, and international restaurant presence currently exceeds 235 restaurants in 14 countries. There are approximately 3,000 franchise- and company-owned restaurants between the two chains system wide.
The 50-restaurant development agreement was reached in July 2005, and provides for Bright Star LLC to open restaurants across the Russian Federation over the next eight years. The first two to open this past weekend are part of a larger plan: "Our goal is to take a leadership position in the Russian fast food market," said Alexandra Mikhailova, general director of Bright Star LLC. "As we researched the proper venue for this goal, Carl's Jr. stood out among competitors as having a vision for its business and a strong product to stand on. We look forward to many more restaurant openings over the next few years."
About Carl's Jr. and CKE Restaurants, Inc.
This year, Carl's Jr. celebrates 65 years in the quick-service industry. What began as a lone hot dog cart in Los Angeles, Calif. in 1941 is today an international organization that employs nearly 30,000 people worldwide. Carl's Jr. is a wholly owned subsidiary of CKE Restaurants, Inc. (NYSE: CKR) of Carpinteria, Calif. As of the second fiscal quarter ended Aug. 14, 2006, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,131 franchised or company-owned restaurants in 43 states and in 13 countries, including 1,072 Carl's Jr. restaurants, 1,945 Hardee's restaurants and 98 La Salsa Fresh Mexican Grill® restaurants. For more information, or to find a Carl's Jr. near you, go to www.ckr.com or www.carlsjr.com.
Safe Harbor Disclosure
Matters discussed in this news release contain forward-looking statements relating to future plans and developments, financial goals and operating performance that are based on management's current beliefs and assumptions. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond the Company's control and which may cause results to differ materially from expectations. Factors that could cause the Company's results to differ materially from those described include, but are not limited to, whether or not restaurants will be closed and the number of restaurant closures, consumers' concerns or adverse publicity regarding the Company's products, the effectiveness of operating initiatives and advertising and promotional efforts (particularly at the Hardee's brand), changes in economic conditions or prevailing interest rates, changes in the price or availability of commodities, availability and cost of energy, workers' compensation and general liability premiums and claims experience, changes in the Company's suppliers' ability to provide quality and timely products to the Company, delays in opening new restaurants or completing remodels, severe weather conditions, the operational and financial success of the Company's franchisees, franchisees' willingness to participate in the Company's strategies, the availability of financing for the Company and its franchisees, unfavorable outcomes in litigation, changes in accounting policies and practices, effectiveness of internal controls over financial reporting, new legislation or government regulation (including environmental laws), the availability of suitable locations and terms for the sites designated for development, and other factors as discussed in the Company's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the New York Stock Exchange.