Exhibit 12.1
CKE RESTAURANTS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| Predecessor | ||||||||||||||||||||
| Fiscal years ended January 31, | ||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||
|
Earnings(1) : |
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| Income before income taxes and discontinued operations |
$ | 59,747 | $ | 88,213 | $ | 59,731 | $ | 58,489 | $ | 63,176 | ||||||||||
| Fixed charges |
53,253 | 50,231 | 64,291 | 59,977 | 50,413 | |||||||||||||||
| Less: capitalized interest |
(603 | ) | (784 | ) | (2,059 | ) | (1,294 | ) | (766 | ) | ||||||||||
| $ | 112,397 | $ | 137,660 | $ | 121,963 | $ | 117,172 | $ | 112,823 | |||||||||||
| Fixed charges(2): |
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| Interest expense |
$ | 22,988 | $ | 19,768 | $ | 33,033 | $ | 28,609 | $ | 19,254 | ||||||||||
| Capitalized interest |
603 | 784 | 2,059 | 1,294 | 766 | |||||||||||||||
| Interest component of rent expense |
29,662 | 29,679 | 29,199 | 30,074 | 30,393 | |||||||||||||||
| $ | 53,253 | $ | 50,231 | $ | 64,291 | $ | 59,977 | $ | 50,413 | |||||||||||
| Ratio of earnings to fixed charges |
2.1 | 2.7 | 1.9 | 2.0 | 2.2 | |||||||||||||||
| Deficiency (if any) |
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Rent expense |
88,985 | 89,038 | 87,597 | 90,221 | 91,178 | |||||||||||||||
| Interest component (1/3 of rent expense) |
29,662 | 29,679 | 29,199 | 30,074 | 30,393 | |||||||||||||||
| Predecessor | Successor | |||||||||||
| Twenty-Eight Weeks Ended August 10, 2009 |
Twenty-Four Weeks Ended July 12, 2010 |
Four Weeks Ended August 9, 2010 |
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|
Earnings(1) : |
||||||||||||
| Income (loss) before income taxes and discontinued operations |
$ | 44,726 | $ | 257 | $ | (28,084 | ) | |||||
| Fixed charges |
25,343 | 22,973 | 8,542 | |||||||||
| Less: capitalized interest |
(442 | ) | (282 | ) | (85 | ) | ||||||
| $ | 69,627 | $ | 22,948 | $ | (19,627 | ) | ||||||
| Fixed charges(2): |
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| Interest expense |
$ | 8,404 | $ | 8,617 | $ | 5,856 | ||||||
| Capitalized interest |
442 | 282 | 85 | |||||||||
| Interest component of rent expense |
16,497 | 14,074 | 2,601 | |||||||||
| $ | 25,343 | $ | 22,973 | $ | 8,542 | |||||||
| Ratio of earnings to fixed charges |
2.7 | — | — | |||||||||
| Deficiency (if any) |
$ | — | $ | (25 | ) | $ | (28,169 | ) | ||||
| Rent expense |
49,490 | 42,221 | 7,804 | |||||||||
| Interest component (1/3 of rent expense) |
16,497 | 14,074 | 2,601 | |||||||||
| (1) | “Earnings” consists of income (loss) before income taxes and discontinued operations plus fixed charges less capitalized interest. |
| (2) | “Fixed charges” include interest both expensed and capitalized, amortized discounts and capitalized expenses related to indebtedness and an estimate of the interest within rental expense. |