CKE Chief Promotes Carl’s Burgeoning Burger Empire

IRVINE — CKE Restaurants Inc.’s string of acquisitions and investments in restaurant companies represent “trial runs” for the Anaheim-based company’s upcoming $327-million purchase of the Hardee’s Food Systems burger chain, CKE’s chief executive told shareholders Wednesday.

William P. Foley II described the planned acquisition of Hardee’s as a “gigantic opportunity” that will catapult the $600-million parent of the Carl’s Jr. chain into the nation’s fourth-largest burger chain with $1.5 billion in annual revenue.

While a few shareholders grumbled about CKE’s cheeky television advertisements for the Carl’s Jr. chain, most of those attending the company’s annual meeting at the Irvine Marriott seemed content with CKE, whose stock has swelled in value to $27 per share from just over $4 in 1993.

Foley acknowledged that the upcoming Hardee’s acquisition, which would give CKE 3,900 restaurants nationwide, will be difficult. Hardee’s, based in Rocky Mount, N.C., has a solid breakfast business, but Foley said the chain’s daytime menu “isn’t any good.”

CKE plans to replace Hardee’s lunch and dinner menus with charcoal-broiled burgers. And if test marketing is successful, CKE would then add the Carl’s Jr. name and menu at Hardee’s locations.

Foley also signaled that CKE’s ongoing string of acquisitions might be drawing to a close. “Next year, I’ll be talking about how successful we’ve been,” Foley said. “But I don’t think we’ll be talking about how many acquisitions we’ve done.”