Checkers to Take Over 21 Rally’s Restaurants
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Fast-food hamburger chain Checkers Drive-In Restaurants Inc. said it plans to take over 18 California and three Arizona restaurants from its biggest shareholder, CKE Restaurants Inc. in Anaheim.
The Clearwater, Fla., company said CKE, owner of Carl’s Jr. and Hardee’s chains, has been operating 21 Rally’s restaurants since 1996 under an agreement with then-troubled Rally’s Hamburgers Inc., which since has merged with Checkers.
CKE owns 11.2% of Checkers, down from 16.6% nearly two years ago. CKE, itself hurting from its purchase of Hardee’s, has been selling company-owned outlets to franchisees to help reduce debt.
Checkers stock rose 1 cent to close at $5.70 on Nasdaq, and CKE stock fell 2 cents to close at $2.60 on the NYSE. The news was released after the close of trading.
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