CKE: announced its third quarter financial results

Carpinteria / CA. (cke) CKE Restaurants Inc. announced its third fiscal quarter financial results for the twelve weeks ended November 07, 2011. Blended same-store sales increased 1,9 percent in the third quarter of fiscal 2012. Carl´s Jr. same-store sales increased 2,0 percent and Hardee´s same-store sales increased 1,8 percent. Overview:

CKE	Q3/2012	Q3/2011	FY-2012	FY-2011
Carl´s Jr.	+2,0%	-5,0%	+2,0%	-6,2%
Hardee´s	+1,8%	+8,3%	+5,0%	+4,0%
Blended	+1,9%	+0,9%	+3,4%	-1,7%

Third Quarter Results

The Company reported total revenue of 292,6 million USD for the fiscal 2012 third quarter, an increase of 7,8 million USD or 2,8 percent compared to the fiscal 2011 third quarter.

«Hardee´s continued to generate positive same-store sales results during the third quarter. Including period ten and the third quarter, Hardee´s has now had twenty-two consecutive periods and six consecutive quarters of positive same-store sales. Carl´s Jr. also performed well, posting its third consecutive quarter of positive same-store sales», said Andrew F. Puzder, Chief Executive Officer.

For the fiscal 2012 third quarter, company-operated restaurant-level adjusted Ebitda margin was 16,9 percent; a 30 basis point decrease compared to the prior year quarter. Food and packaging costs increased 110 basis points, primarily as a result of higher commodity costs for beef, oil and cheese products. Advertising increased 20 basis points. These increases were offset by a 50 basis point decrease in labor costs and a 50 basis point decrease in occupancy and other expense, excluding depreciation and amortization.

Adjusted Ebitda was 37,9 million USD in the third quarter of fiscal 2012; 0,6 million USD lower than the prior year quarter. As of November 07, 2011, cash and cash equivalents were 61,1 million USD and the Company had 68,5 million USD available under its credit facility with no borrowings outstanding.

During the third quarter of fiscal 2012, the Company purchased 8,2 million USD of the principal amount of its outstanding 11,375 percent Senior Secured Second Lien Notes due 2018 at par value in an open market transaction and paid the associated accrued and unpaid interest on these purchased Notes of 0,2 million USD. The Company recognized a loss of 0,3 million USD on the early extinguishment of these Notes. Subsequent to the purchase and as of November 07, 2011, the aggregate principal amount of the Notes outstanding was 551,8 million USD.

This fiscal year through November 07, 2011, the Company has entered into agreements with independent third parties under which the Company sold and leased back 29 restaurant properties. The Company received pre-tax net proceeds of 40,7 million USD in connection with these transactions. During the third quarter of fiscal 2012, the Company entered into 18 of these transactions, generating pre-tax net proceeds of 24,7 million USD.

In accordance with the indenture governing the Notes, the Company is required to make an offer to repurchase its Notes with a portion of the net proceeds received from sale-leaseback transactions. Pursuant to these requirements, on December 01, 2011, the Company commenced a tender offer to purchase up to 27,9 million USD of the principal amount of the Notes at a redemption price of 103 percent, which expires on December 29, 2011. In addition to the Tender Offer, on December 01, 2011, the holders of the Notes were notified that the Company will redeem on January 04, 2012, conditioned in part on the result of the Tender Offer up to 20,0 million USD aggregate principal amount of the Notes outstanding on January 04, 2012 at a redemption price of 103 percent pursuant to the terms of the indenture governing the Notes. Pursuant to the Redemption, the Notes to be redeemed will be reduced so that the total principal amount of Notes purchased in both the Tender Offer and Redemption will not exceed 30,0 million USD.

Capital expenditures for the fiscal 2012 third quarter were 16,3 million USD; of which 6,7 million USD related to new store openings, dual-branding and remodelling projects. For fiscal 2012, the Company expects capital expenditures to be between 55,0 million USD and 60,0 million USD. As of November 07, 2011, the Company´s system-wide restaurant portfolio consisted of:

	Carl´s Jr.	Hardee´s	Other	Total
Company-operated	0’425	0’469	00	0’894
Franchised	0’692	1’225	10	1’927
Licensed	0’175	0’223	00	0’398
Total	1’292	1’917	10	3’219