Wisconsin Franchisee Purchases 48 Hardee's Restaurants

CKE Restaurants, Inc., parent of Hardee's Food Systems, Inc., announced today that the Company has sold an additional 48 Hardee's restaurants to a longtime franchisee for approximately $13.5 million. This is the latest transaction in the Company's previously announced re-franchising effort, which is designed to reduce debt and rebalance the Hardee's system to a more manageable number of company-owned restaurants.

The buyer of the 48 restaurants is Doro, Incorporated, of Eau Claire, Wis. Doro has owned and operated Hardee's restaurants in the state of Wisconsin since the late 1960s. Before today's transaction, the Franchise group owned and operated 28 Hardee's restaurants, and was recognized throughout the Hardee's system for its strong operations.

According to Tom Thompson, CKE Restaurants' president and chief executive officer, these 48 restaurants, along with 142 restaurants sold earlier this year, give CKE a total of 190 restaurants sold year to date and approximately $63 million raised. "At the beginning of the year, we indicated that our objective was to sell at least 500 restaurants to franchisees this year and raise $200 million, with $50 million raised through July," Thompson said. Since the outset of the Hardee's re-franchising program, CKE has sold 251 Hardee's locations to franchisees and raised approximately $82 million.

Praetorian Group assisted Hardee's in this transaction. franchise Mortgage Acceptance Company was the primary lender, which financed and structured the transaction for the buyer.

CKE Restaurants, Inc., through its subsidiaries, franchisees and licensees, operates more than 3,800 quick-service restaurants, including 957 Carl's Jr. restaurants in 13 Western states and Mexico; 2,760 Hardee's restaurants in 37 states and 11 foreign countries; and 125 Taco Bueno restaurants in Texas and Oklahoma.