CKE Restaurants Maintains Profit Levels Despite Challenging Environment and Resulting Softness in Same-Store Sales

- First Quarter Operating Income Increases to $29.7 Million -

- Company-Operated Restaurant-Level Margin Remains Even at 19.9% -
CARPINTERIA, Calif.--(Business Wire)--
CKE Restaurants, Inc. (NYSE:CKR) announced today first quarter results and the
filing of its Report on Form 10-Q with the Securities and Exchange Commission
("SEC") for the sixteen weeks ended May 18, 2009.

First Quarter Highlights

First Quarter
($ in millions, except per share amounts) FY 2010 FY 2009
Company-Operated Blended Same-Store Sales -1.8% + 1.8%
Company-Operated Restaurant-Level Margin (1) 19.9% 19.9%
Operating Income $29.7 $29.6
Net Income $14.4 $16.6
Diluted EPS $0.26 $0.31
Adjusted EBITDA (2) $54.7 $54.6
Diluted EPS, excluding mark-to-market adjustments(3) $0.29 $0.28
Effective Tax Rate 40.5% 36.2%

(1) We define company-operated restaurant-level margin as restaurant-level
income divided by company-operated restaurants revenue. Restaurant-level income
is company-operated restaurants revenue less restaurant operating costs, which
are the expenses incurred directly by our company-operated restaurants in
generating revenues and do not include advertising costs, general and
administrative expenses or facility action charges. Restaurant-level margin is
influenced by factors such as fluctuations in food and labor costs, price
increases, the effectiveness of our advertising and marketing initiatives and
product mix.

(2) Excludes interest expense, depreciation and amortization, facility action
charges, share-based compensation expense, and income tax expense.

(3) Diluted earnings per share, excluding mark-to-market adjustments (and
related income tax effect at our marginal tax rate of 38.3%) related to our
interest rate swap agreements.

Executive Commentary

"I am pleased with our achievements given the daunting hurdles this management
team faced in delivering our first quarter results," said Andrew F. Puzder,
chief executive officer. "We held company-operated restaurant-level margin flat
to the prior year and increased operating income despite a 1.8% decrease in
company-operated same-store sales during the quarter. We delivered these results
in the face of a challenging economy and a difficult competitive environment.
Not only did we hold restaurant-level margin steady from the year ago period,
but at 19.9%, our margin remains among the highest in the industry, validating
the strategic importance of our focus on profitability as well as sales rather
than simply `sales at any cost`.

"Quarterly net income declined by $2.2 million to $14.4 million. This decrease
resulted primarily from increases in interest and income tax expenses. Interest
expense increased by $1.8 million due to charges related to our interest rate
swap agreements, partially offset by a reduction in interest expense related to
our credit facility. Our mark-to-market adjustment on our interest rate swap
agreements increased interest expense by $2.4 million this quarter, as opposed
to the prior year quarter when the swap agreement adjustments reduced interest
expense by $2.4 million. As expected, lower outstanding debt balances and lower
interest rates have caused our cash obligations for interest to decrease during
the first quarter as compared to the prior year quarter.

"Quarterly income tax expense increased by $0.4 million to $9.8 million, and our
effective income tax rate increased to 40.5% from 36.2% in the prior year
quarter. The increase in our effective income tax rate resulted from favorable
tax law changes we recognized in the prior year quarter that did not recur this
year. This 4.3 percentage point increase in our effective tax rate equates to a
$1.0 million negative impact to net income based on our $24.2 million pre-tax
income.

"We improved Adjusted EBITDA to $54.7 million for the first quarter of fiscal
2010 despite the net impact of our Hardee`s refranchising program that reduced
Adjusted EBITDA by $2.7 million from last year. Since the beginning of fiscal
2009, we sold 102 company-operated Hardee`s restaurants and three
company-operated Carl`s Jr. restaurants to franchisees who now operate these
restaurants.

"On a diluted per share basis, earnings were $0.26 for the first fiscal quarter
of 2010, which compares to $0.31 for the same period last year. Excluding the
impact of the mark-to-market adjustments, fully diluted earnings per share were
$0.29 for the first quarter of fiscal 2010, which compares to $0.28 last year.

"Hardee`s improved both its same-store sales and margin during the quarter.
Hardee`s improved its company-operated restaurant-level margin 60 basis points
to 17.5% of company-operated restaurants revenue. Hardee`s reduced food and
packaging costs as well as labor expense for the quarter. Our ongoing remodel
program resulted in increased depreciation expense, which was the primary driver
of increased occupancy expense for the quarter, partially offsetting our
improvements in food and paper costs and labor expense.

"Hardee`s increased its same-store sales 2.5% in the first quarter. Our premium
product strategy, our successful execution of Hardee`s remodeling program, and
our aggressive customer service improvement campaign drove this increase.
Hardee`s also increased its average unit volume for the trailing-13 periods to
$1,010,000 as of May 18, 2009. This new record for the brand compares to
$959,000 in the prior year and is up 41.1% from $716,000 in fiscal 2001 when our
current management team took over. During the quarter, Hardee`s introduced the
Chicken Parmesan sandwich, the Western Bacon Thickburger, Beer-battered Onion
Rings and Texas Toast Breakfast Sandwiches.

"Carl`s Jr. company-operated restaurant-level margin was 21.9% of
company-operated restaurants revenue for the quarter, which compares to 22.5% a
year earlier. An increase in depreciation expense related to our ongoing remodel
program and a 5.1% decline in same-store sales were the primary drivers of the
60 basis point decline in restaurant-level margin. In addition to the negative
impact from California`s economy, Carl`s Jr. rolled over successful product
promotions from last year which yielded a 3.9% increase in same-store sales.
Carl`s Jr. improved its food and packaging cost versus the prior year quarter. A
workers` compensation expense credit in the prior year quarter that did not
recur to the same extent this year caused an increase in labor expense. But for
this credit in the prior year, labor expense would have been flat to prior year.
Our ongoing remodeling program, which caused depreciation expense to increase by
70 basis points, as well as the deleveraging impact of the same-store sales
decline, caused occupancy expense to increase by a total of 100 basis points for
the quarter.

"Carl`s Jr.`s average unit volume for the trailing-13 periods was $1,507,000 at
May 18, 2009, which compares to $1,514,000 for the same period last year. During
the quarter, Carl`s Jr. rolled out the Green Burrito Crisp Burritos, the
Kentucky Bourbon Burger, and Jumbo Chili Dogs. At the beginning of the second
quarter, Carl`s Jr. re-introduced the Portobello Mushroom Six Dollar Burger.

"It has never been my goal to get excited over reporting flat earnings or
margins. However, holding operating income and company-operated restaurant-level
margin steady in this economy and doing so while facing the heavy discounting
taking place in the fast food and casual dining sectors, as well as increased
depreciation expense due to our remodeling programs at both brands, is a
testament to our management team and the strength of our brands. We are taking
active steps to manage the same-store sales decline at Carl`s Jr. and to
generate continuing positive same-store sales at both brands. Yet, we are
managing our company for long-term health, which requires that we focus on
consumer perceptions, brand image and profitability as well as sales. As such,
we intend to launch initiatives that increase the awareness of the value of our
premium products relative to casual dining as well as our existing value items
that we have previously only promoted in the restaurants. In addition, we are
testing Hardee`s successful breakfast menu at Carl`s Jr. and will begin testing
some affordable menu options we can offer on our own terms such as a snack menu
and a reduced combo up-charge when ordering value items. We are also focusing
our efforts on diversifying our growth outside of California.

"We just launched a very innovative partnership with YouTube whereby we are
utilizing some of their most popular video stars to produce short videos
promoting our burgers. With a combined following of 3.2 million subscribers,
these video bloggers ("vloggers") are helping us target our customer demographic
where they already are. In addition, the media cost is much lower than with
traditional advertising. According to www.mashable.com, the world`s largest blog
focused exclusively on Web 2.0 and Social Media news, our sponsored video
content appears to have `turned out to be a big hit.` In fact, just one of the
Carl`s Jr. vloggers created a video that`s already received over 2.4 million
views across the web. All of the Carl`s Jr. vloggers` videos, combined, have
been viewed more than 5.7 million times.

"The most important take-away is to understand we are managing our company for
long-term growth and strength while making every effort to grow both short- and
long-term sales in ways that complement or improve our brand positioning,"
Puzder concluded. "While we may continue to face difficult same-store sales
comparisons -- especially in the second quarter where we have very strong prior
year same-store sales results -- we are designing strategies that aim to deliver
long-term shareholder value, while keeping the enterprise value of our brands
intact."

Guidance

For modeling purposes only, the Company is currently using the following metrics
in its forecast for fiscal 2010:

* An effective tax rate of 40.5%
* Food cost inflation of 2% to 3%
* Capital expenditures of $100 to $110 million and 14 new company-operated
restaurants.

Conference Call

The Company will host a conference call and webcast on June 25, 2009, at 8:00
a.m. Central Time / 9:00 a.m. Eastern Time to review these results and discuss
the Company`s growth plans. The Company invites investors to listen to the live
webcast of the conference call at www.ckr.com under "Investors."

SEC Filings

The Company`s filings with the SEC are available to investors at www.ckr.com
under "Investors/SEC Filings."

Non-GAAP Financial Measures

Adjusted EBITDA is a non-GAAP measure used by our lenders as an indicator of
earnings available to service debt, fund capital expenditures and for other
corporate uses. Adjusted EBITDA is not intended to be a substitute for net
income or other measures determined in accordance with GAAP.

Company Summary

During the quarter, the Company and its franchisees opened 29 new restaurants,
including 12 internationally. The Company and its franchisees also completed 62
remodels as well as 3 Green Burrito and 1 Red Burrito dual-brand conversions.

As of the end of its fiscal 2010 first quarter, CKE Restaurants, Inc., through
its subsidiaries, had a total of 3,133 franchised, licensed or company-operated
restaurants in 42 states and in 14 countries, including 1,205 Carl's Jr.
restaurants and 1,915 Hardee's restaurants.

Safe Harbor Disclosure

Matters discussed in this press release contain forward-looking statements
relating to future plans and developments, financial goals, and operating
performance and are based on management`s current beliefs and assumptions. Such
statements are subject to risks and uncertainties that are often difficult to
predict and beyond the Company`s control. Factors that could cause the Company`s
results to differ materially from those described include, but are not limited
to, the Company`s ability to compete with other restaurants, supermarkets and
convenience stores; changes in economic conditions which may affect the
Company`s business and stock price; the effect of restrictive covenants in the
Company`s credit facility on the Company`s business; the Company`s ability to
attract and retain key personnel; the Company`s franchisees` willingness to
participate in the Company`s strategy; the operational and financial success of
the Company`s franchisees; changes in consumer preferences and perceptions;
changes in the price or availability of commodities; changes in the Company`s
suppliers` ability to provide quality products to the Company in a timely
manner; the effect of the media`s reports regarding food-borne illnesses and
other health-related issues on the Company`s reputation and its ability to
obtain products; the seasonality of the Company`s operations; increased
insurance and/or self-insurance costs; the Company`s ability to select
appropriate restaurant locations, construct new restaurants, complete remodels
of existing restaurants and renew leases with favorable terms; the Company`s
ability to comply with existing and future health, employment, environmental and
other government regulations; 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.

CKE RESTAURANTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

Sixteen Weeks Sixteen Weeks
Ended May 18, 2009 Ended May 19, 2008
Revenue:
Company-operated restaurants $ 343,164 $ 358,238
Franchised and licensed restaurants and other 103,640 107,933
Total revenue 446,804 466,171
Operating costs and expenses:
Restaurant operating costs:
Food and packaging 98,502 105,074
Payroll and other employee benefits 97,369 103,683
Occupancy and other 78,837 78,035
Total restaurant operating costs 274,708 286,792
Franchised and licensed restaurants and other 79,493 83,067
Advertising 20,767 21,098
General and administrative 41,113 44,511
Facility action charges, net 1,048 1,073
Total operating costs and expenses 417,129 436,541
Operating income 29,675 29,630
Interest expense (6,344 ) (4,568 )
Other income, net 862 992
Income before income taxes 24,193 26,054
Income tax expense 9,798 9,434
Net income $ 14,395 $ 16,620

Dividends per common share $ 0.06 $ 0.06

Earnings per common share:
Basic $ 0.26 $ 0.32
Diluted (1) $ 0.26 $ 0.31

Weighted-average common shares outstanding:
Basic 54,615 52,437
Diluted 55,037 55,011

(1) The interest expense adjustment, net of tax, which is added to the Company`s
net income for the diluted per share calculation, due to the dilutive effect of
its convertible subordinated notes, was $0 and $135 for the sixteen weeks ended
May 18, 2009 and May 19, 2008, respectively.

CKE RESTAURANTS, INC. AND SUBSIDIARIES

CONDENSED PRESENTATION OF NON-GAAP MEASUREMENTS

(In thousands)

(Unaudited)

Sixteen Weeks Sixteen Weeks Trailing-13 Periods
Ended May 18, 2009 Ended May 19, 2008 Ended May 18, 2009

Net income $ 14,395 $ 16,620 $ 34,731
Interest expense 6,344 4,568 30,385
Income tax expense 9,798 9,434 21,897
Depreciation and amortization 21,298 18,982 65,813
Facility action charges, net 1,048 1,073 4,114
Share-based compensation expense 1,852 3,937 10,449
Adjusted EBITDA $ 54,735 $ 54,614 $ 167,389

CKE Restaurants, Inc.
Lisa Riordan
Vice President, Investor Relations
805-745-7750

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