-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, khYDGqO/XboeFr6hjnJkU33jk1M4sStBxodn2OCLX5c8eHn+1Rp7jdL+LuGy251g ExYNl3nIaAh/OTVZ7tdCXg== 0000892569-94-000183.txt : 19940714 0000892569-94-000183.hdr.sgml : 19940714 ACCESSION NUMBER: 0000892569-94-000183 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940523 FILED AS OF DATE: 19940707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CKE RESTAURANTS INC CENTRAL INDEX KEY: 0000919628 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 330602639 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-11313 FILM NUMBER: 94538135 BUSINESS ADDRESS: STREET 1: 1200 N HARBOR BLVD CITY: ANAHEIM STATE: CA ZIP: 92801 BUSINESS PHONE: 7147745796 10-Q 1 FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q (Mark One) ____X____ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended May 23, 1994 -------------------- OR _________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. for the transition period from __________________ to _____________________ Commission file number 1-13192 ------------- CKE RESTAURANTS, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 33-0602639 - - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1200 North Harbor Boulevard, Anaheim, CA 92801 - - ---------------------------------------- ---------- (Address of principal executive offices) (zip Code) Registrant's telephone number, including area code (714) 774-5796 ---------------------- NOT APPLICABLE --------------------------------------------------- Former name, former address and former fiscal year, if changed since last report. Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. $.01 par value common - 18,782,421 shares as of July 1, 1994 ------------------------------------------------------------ 1101194.FIN 07/06/94 1 2 CKE RESTAURANTS, INC. INDEX
Page ---- Part I Consolidated Financial Information Item 1. Consolidated Financial Statements: Consolidated Balance Sheets as of May 23, 1994 and January 31, 1994 . . . . . . . . . . . . . 3 Consolidated Statements of Income for the sixteen weeks ended May 23, 1994 and May 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Consolidated Statements of Cash Flows for the sixteen weeks ended May 23, 1994 and May 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6 Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . 7-8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . 9-11 Part II Other Information Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-13
1101194.FIN 07/06/94 2 3 CKE RESTAURANTS, INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
May 23, January 31, 1994 1994 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 8,936 $ 17,075 Marketable securities 14,621 9,064 Accounts receivable 8,306 8,956 Related party receivables 1,407 1,175 Inventories 7,529 7,485 Deferred tax asset, net 15,310 15,310 Other current assets 3,979 10,339 -------- -------- Total current assets 60,088 69,404 Property and equipment, net 112,553 113,212 Property under capital leases, net 32,761 33,608 Notes receivable 15,789 16,171 Related party notes receivable 1,940 1,976 Other assets 8,714 7,764 -------- -------- $231,845 $242,135 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 11,526 $ 13,207 Current portion of capital lease obligations 3,407 3,354 Accounts payable 13,616 13,161 Other current liabilities 33,735 36,831 -------- -------- Total current liabilities 62,284 66,553 -------- -------- Long-term debt 15,222 17,414 Capital lease obligations 45,045 45,886 Other long-term liabilities 16,765 20,206 Stockholders' equity: Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued or outstanding -- -- Common stock, $.01 par value; authorized 50,000,000 shares; issued and outstanding 18,758,671 and 18,005,746 shares 188 180 Additional paid-in capital 34,286 33,748 Retained earnings 58,055 58,148 -------- -------- Total stockholders' equity 92,529 92,076 -------- -------- $231,845 $242,135 ======== ========
1101194.FIN 07/06/94 3 4 CKE RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except per share Amounts) (Unaudited)
Sixteen Weeks Ended ---------------------------- May 23, May 17, 1994 1993 --------- ----------- Revenues: Sales by Company-operated restaurants $111,303 $116,971 Revenues from franchised and licensed restaurants 23,703 23,884 -------- -------- Total revenues 135,006 140,855 -------- -------- Operating costs and expenses: Company-operated restaurants: Food and packaging 33,738 34,804 Payroll and other employee benefits 35,528 38,740 Occupancy and other operating expenses 24,807 27,705 -------- -------- 94,073 101,249 Franchised and licensed restaurants 22,512 22,506 Advertising expenses 5,857 5,561 General and administrative expenses 9,660 10,127 -------- -------- Total operating costs and expenses 132,102 139,443 -------- -------- Operating income 2,904 1,412 Interest expense (2,641) (2,972) Other income, net 731 2,993 -------- -------- Income before income taxes and cumulative effect of change in accounting principle 994 1,433 Income tax expense 338 507 -------- -------- Income before cumulative effect of change in accounting principle 656 926 Cumulative effect of change in accounting principle (net of income tax benefit of $512) -- (768) -------- -------- Net income $ 656 $ 158 ======== ======== Net income per share: Income before cumulative effect of change in accounting principle $ .04 $ .05 Cumulative effect of change in accounting principle -- (.04) -------- -------- Net income $ .04 $ .01 ======== ======== Weighted average shares outstanding 18,739 18,092 ======== ========
1101194.FIN 07/06/94 4 5 CKE RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited)
Sixteen Weeks Ended --------------------------------- May 23, May 17, 1994 1993 --------------- -------------- Net cash flow from operating activities: Net income $ 656 $ 158 Adjustments to reconcile net income to net cash provided by operating activities: Noncash franchise revenues -- (5) Depreciation and amortization 6,802 6,935 Loss on sale of property and equipment 1,630 96 Reversal of rent subsidy reserves (2,680) -- Write-down of marketable securities -- 116 Net noncash investment income (3) (19) Cumulative effect of change in accounting principle -- 768 Payment of arbitration settlement (3,000) -- Net change in marketable securities reserve 211 (64) Net change in receivables, inventories and other current assets (173) 277 Net change in other assets (988) 9 Net change in accounts payable and other current liabilities 940 3,427 -------- -------- Net cash provided by operating activities 3,395 11,698 -------- -------- Cash flow from investing activities: Construction of restaurant property to be reimbursed or sold and leased back -- (1,088) Sale of or reimbursement on restaurant property to be sold and leased back -- 157 Purchases of: Marketable securities (1,922) (7,910) Property and equipment (7,017) (3,355) Proceeds from sales of: Marketable securities 2,933 25,576 Property and equipment 16 144 Collections on leases receivable 36 31 Increases in notes receivable & related party notes receivable (30) -- Collections on notes receivable and related party notes receivable 581 1,797 -------- ---------- Net cash provided by (used in) investing activities (5,403) 15,352 --------- ---------- Cash flow from financing activities: Net change in bank overdraft (296) (2,761) Net change in obligations secured by marketable securities -- (2,422) Short-term borrowings 2,500 13,100 Repayments of short-term debt (2,500) (31,200) Repayments of long-term debt (4,172) (5,075) Repayments of capital lease obligations (698) (638) Net change in other long-term liabilities (762) (830) Exercise of stock options 546 506 Payment of dividends (749) (364) -------- ------------ Net cash used in financing activities (6,131) (29,684) -------- ---------- Net decrease in cash and cash equivalents $ (8,139) $ (2,634) ========= =========
1101194.FIN 07/06/94 5 6 CKE RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) Sixteen Weeks Ended --------------------------- May 23, May 17, 1994 1993 --------- ---------- Supplemental disclosures of cash flow information: Cash paid during period for: Interest (net of amount capitalized) $ 2,609 $ 3,047 Income taxes -- 368 Noncash investing and financing activities: Investing activities: Transfer of marketable securities to other assets -- 6,776 Transfer of other current assets to marketable securities 6,776 -- Other investing activities: Net change in marketable securities from noncash transactions (3) 55 Net change in dividends receivable -- 36 Leasing activities: Decrease in property under capital leases 91 -- Decrease in capital lease obligations (90) -- Reversal of certain lease subsidy reserves 2,680 -- Franchising activities: Sale of property and equipment -- 344 Sale of inventory -- 11 Assumption of various liabilities -- 45 Increase in notes receivable -- (405) Sale/leaseback activities: Transfer of restaurant property costs to property and equipment -- 5,520
1101194.FIN 07/06/94 6 7 CKE RESTAURANTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MAY 23, 1994 AND MAY 17, 1993 NOTE (A) BASIS OF PRESENTATION In June 1994, a plan of reorganization and agreement of merger were approved by the shareholders of Carl Karcher Enterprises, Inc. ("Enterprises"), whereby Enterprises and Boston Pacific, Inc. ("Boston Pacific") became wholly-owned subsidiaries of CKE Restaurants, Inc. ("Restaurants" and collectively with its subsidiaries, the "Company"). Restaurants is a Delaware holding company recently formed to provide overall strategic direction and finance, legal and administrative support to Enterprises, operator and franchisor of over 650 Carl's Jr. restaurants, and Boston Pacific, a franchisee of Boston Chicken, Inc. that will develop and operate up to 300 Boston Chicken stores. Upon completion of this transaction, the shareholders of Enterprises became stockholders of the Company. The accompanying unaudited consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and, therefore, do not include all information and footnotes which would be presented were such consolidated financial statements prepared in accordance with generally accepted accounting principles. These statements should be read in conjunction with the audited financial statements presented in the Company's 1994 Annual Report to Shareholders. In the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for such interim periods are not necessarily indicative of results to be expected for the full year. The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany profits, transactions and balances have been eliminated. Since Boston Pacific began its start-up operations in February 1994 and Restaurants did not commence its operations until after the 16 weeks ended May 23, 1994, the quarter being reported on in this Form 10-Q, most of the financial performance for the current fiscal quarter and all of the financial performance for the prior fiscal quarter discussed and analyzed in this Form 10-Q are comprised solely of the operations of Enterprises, unless otherwise indicated. NOTE (B) NEW ACCOUNTING PRONOUNCEMENTS The Company adopted Statement of Financial Accounting Standards No. 115 ("SFAS 115"), "Accounting for Certain Investments in Debt and Equity Securities," as of February 1, 1994, the adoption of which did not have a material effect on the Company's consolidated financial statements. SFAS 115 requires the inclusion in income or stockholders' equity of unrealized gains and losses resulting from the fair value accounting of investments in debt and equity securities, except for debt securities classified as "held to maturity." Net income for the first quarter of fiscal 1994 was restated to reflect a charge of $768,000 which represented the cumulative effect related to a change in the method used to discount the Company's workers' compensation reserve. NOTE (C) COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company is subject to various claims, lawsuits and other disputes with third parties incidental to its operations. While certain of these matters involve claims for substantial amounts, the Company intends to defend these actions vigorously and it is the opinion of the Company's management, in consultation with its attorneys, that their ultimate resolution will not have a material adverse affect on the Company's consolidated financial statements. 1101194.FIN 07/06/94 7 8 CKE RESTAURANTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MAY 23, 1994 AND MAY 17, 1993 (Continued) NOTE (D) RECLASSIFICATIONS Certain prior year amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 1995 presentation. 1101194.FIN 07/06/94 8 9 CKE RESTAURANTS, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW In June 1994, a plan of reorganization and agreement of merger were approved by the shareholders of Carl Karcher Enterprises, Inc. ("Enterprises") whereby Enterprises and Boston Pacific, Inc. ("Boston Pacific") became wholly-owned subsidiaries of CKE Restaurants, Inc. ("Restaurants" and collectively with its subsidiaries, the "Company"). Restaurants is a Delaware holding company recently formed to provide overall strategic direction and finance, legal and administrative support to Enterprises, operator and franchisor of over 650 Carl's Jr. restaurants, and Boston Pacific, a franchisee of Boston Chicken, Inc. that will develop and operate up to 300 Boston Chicken stores. Upon completion of this transaction, the shareholders of Enterprises became stockholders of the Company. Enterprises, the predecessor entity of the Company, set in motion a strategic plan during the prior fiscal year aimed at improving its sales performance by refocusing its Carl's Jr. marketing programs on the customer, improving the cost structure of its Carl's Jr. restaurants and realigning its organization to streamline and consolidate its workforce. In keeping with this strategic plan, Enterprises initiated a value-pricing program and simplified its menu late in the first quarter of this year. This repositioning program is designed to improve customers' price/value perceptions and increase restaurant sales, and includes a new marketing campaign that promotes Carl's Jr. restaurants as having superior food at everyday low prices. The Company is also aggressively exploring and testing a variety of new ideas, products and opportunities in the coming months, including a dual concept test which will offer branded products from other restaurant concepts in a limited number of Carl's Jr. restaurants, in an effort to further increase Carl's Jr. restaurant sales. In connection with the start-up of its Boston Chicken operations, the Company began converting several of its Carl's Jr. restaurants to Boston Chicken stores during the first quarter of this year. Of the 20 Boston Chicken stores scheduled to open in the current fiscal year, it is expected that five will open during the second quarter and 15 will open during the latter half of this year. Since Boston Pacific began its start-up operations in February 1994 and Restaurants did not commence its operations until after the 16 weeks ended May 23, 1994, the quarter being reported on in this Form 10-Q, most of the financial performance for the current fiscal quarter and all of the financial performance for the prior fiscal quarter discussed and analyzed below are comprised solely of the operations of Enterprises, unless otherwise indicated. FINANCIAL CONDITION Several aspects of the value repositioning program required the use of cash during the 16 weeks ended May 23, 1994, including increased advertising efforts, additional labor costs associated with anticipated increases in overall guest counts and the purchase and installation of new menu boards in all Company-operated Carl's Jr. restaurants. Start-up costs in connection with the development of Boston Chicken stores also required the use of cash. Additionally, a nonrecurring cash payment was made related to an arbitration settlement that had been accrued as of January 31, 1994. Thus, cash and cash equivalents decreased $8.1 million during the first quarter of this year. Total cash available to the Company as of May 23, 1994 was $23.6 million which includes $14.6 million of holdings in a diversified, highly-liquid investment portfolio with minimal interest rate risk. 1101194.FIN 07/06/94 9 10 CKE RESTAURANTS, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Other current assets decreased during the current quarter largely as a result of the reclassification of $6.8 million of investment securities to marketable securities. These funds, which had been held in trust by the State of California in connection with the Company's self-insured workers' compensation program, were returned to the Company in April 1994. The State requires the Company to secure its potential workers' compensation claims each year by providing a prescribed amount either through one or more standby letters of credit or an equivalent amount of cash or investment securities. The requirement for the period beginning May 1, 1994 is $12.1 million and the Company recently negotiated with its bank to provide a $15.0 million credit line through June 1995 under which $12.1 million is committed to a single standby letter of credit to satisfy this requirement. During the first quarter of fiscal 1995, the Company reacquired several Carl's Jr. restaurants from a former franchisee which resulted in the reversal of $2.7 million of lease subsidy reserves that had previously been established. On May 12, 1994, the Board of Directors adopted a new stock incentive plan under which various incentives including stock or stock options may be awarded to eligible employees and non-employee directors to purchase up to 1,750,000 shares of the Company's common stock. This plan was approved at the Company's recent annual meeting, and provides for certain automatic grants of stock options each year to non-employee directors, priced at an amount equal to or greater than the fair market value on the grant date, totaling 50,000 options in June 1994. RESULTS OF OPERATIONS For the 16 weeks ended May 23, 1994, revenues from Company-operated restaurants decreased 5% to $111.3 million. On a same-store basis, these sales, which are calculated using only restaurants open for the full quarters being compared, declined approximately 4% in fiscal 1995, compared with a 7% decline in the prior year. The Company believes its restaurant sales were adversely affected by negative customer price/value perceptions prior to the repositioning program, unseasonably rainy weather in May 1994 in the Company's core Southern California market and California's continuing recessionary environment. The weighted-average number of Company restaurants operating in fiscal 1995 also decreased slightly. The Company's value repositioning program was introduced late in the first quarter of fiscal 1995. Although Carl's Jr. restaurants did not generate positive same-store sales growth overall for the first quarter, results during the first four weeks of the second quarter showed improvement. For this period subsequent to the end of the quarter, same-store sales declined only 1.7% and transaction counts, on a same-store basis, rose 1.6%, which compares favorably to the 4% sales decline and .3% transaction count decline experienced during the first quarter of this year. Management is encouraged by these early results. Revenues from franchised and licensed restaurants were comprised of sales of food service products to franchisees and licensees by the Company's distribution centers, which accounted for nearly 80% of these revenues, rental income, royalties and initial franchise fees. Overall, there was a 1% decrease in sales to franchised and licensed restaurants despite a 4% increase in the weighted-average number of franchised restaurants operating in the first quarter of fiscal 1995. This was primarily due to decreases in commodities costs experienced by the Company during the current first quarter, as well as volume discounts achieved as a result of contract renegotiations with certain vendors, which were passed along to the Company's franchisees. Royalties rose in connection with scheduled increases in royalty rates, and an increase in the franchised restaurant base. These increases were more than offset by the decrease in other fees related to the sales of and repairs and maintenance on certain franchise equipment. These sales and services were discontinued near the end of the second quarter of fiscal 1994. 1101194.FIN 07/06/94 10 11 CKE RESTAURANTS, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Although the Company operated slightly fewer restaurants in the current quarter as compared with the prior year and same-store sales fell 4% during the quarter, restaurant margins improved from 13.4% a year ago to 15.5% in the current 16-week period, reflecting the Company's continued commitment to improving the cost structure of its Carl's Jr. restaurants. Company-operated restaurant costs decreased a total of 7% in the first quarter of fiscal 1995. Food and packaging costs decreased 3% as compared with the first quarter of fiscal 1994 as a result of decreases in commodity costs, and volume discounts achieved as a result of contract renegotiations with certain vendors. Payroll and other employee benefits decreased 8% due to the Company's continuous efforts to improve labor productivity and decrease its workers' compensation costs. Occupancy and other operating expenses decreased 10%, largely due to reduced repair and maintenance costs as a result of outsourcing and downsizing in this area, which was begun in the second quarter of fiscal 1994. Nearly 80% of all operating costs associated with franchised and licensed restaurants in the first quarter of fiscal 1995 were related to the sales of food service products to franchisees. Gross margins for franchised and licensed restaurants decreased slightly due to the Company's decision to share decreases in commodities costs and savings associated with volume discounts with its franchisees. Although sales by Company-operated restaurants decreased 5%, advertising expenses increased 5% in the first quarter of fiscal 1995 in connection with the introduction of the Company's value repositioning program during April 1994. General and administrative expenses were 5% lower in the first quarter of fiscal 1995 compared with the same fiscal 1994 quarter primarily in connection with the reacquisition of several Carl's Jr. franchises restaurants during the first quarter of fiscal 1995, which resulted in the reversal of certain previously established lease subsidy reserves totaling $2.7 million. Partially offsetting this reversal were $472,000 in nonrecurring expenses associated with the value repositioning program, including the rollout of new menu boards in all Company restaurants, and the corresponding write-off of the old menu boards. Additionally, the Company incurred $582,000 in expenses in its Boston Chicken operations, related to start-up expenses and site conversions. Staff additions were made in operations, marketing, strategic planning and information systems, also offsetting the reversal discussed above. Consistent with the fiscal 1995 first quarter decrease in the Company's total debt outstanding compared to the same fiscal 1994 quarter, interest expense also decreased. Other income, net, in both fiscal 1995 and 1994 was comprised of investment income, gains on sales of restaurants, interest on notes and leases receivable and other nonrecurring interest income. The liquidation of the investment portfolio during fiscal 1994 caused investment income to decrease $1.5 million in the first quarter of fiscal 1995. There was also a $582,000 decrease in gains on sales or dispositions of restaurants because considerably fewer sales have occurred this year as compared with the first quarter of fiscal 1994. The fiscal 1995 effective tax rate was comparable to the effective rate applied in the same period a year ago. Lower income before income taxes in the first quarter of fiscal 1995 resulted in less tax expense as compared with the same fiscal 1994 quarter. Net income for the first quarter of fiscal 1994 was restated to reflect a charge of $768,000 which represented the cumulative effect related to a change in the method used to discount the Company's workers' compensation reserve. 1101194.FIN 07/06/94 11 12 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibit 11 Calculation of Earnings per Share (b) No reports on Form 8-K were filed during the sixteen weeks ended May 23, 1994. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has fully caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CKE RESTAURANTS, INC. (Registrant) July 6, 1994 /s/ Loren C. Pannier - - ------------ ------------------------- Date Senior Vice President, Chief Financial Officer and Duly Authorized Officer 1101194.FIN 07/06/94 12 EX-11 2 CALCULATION OF EARNINGS PER SHARE 1 EXHIBIT 11 CKE RESTAURANTS, INC. CALCULATION OF EARNINGS PER SHARE (In Thousands Except Per Share Amounts)
Sixteen Weeks Ended ------------------------ May 23, May 17, 1994 1993 ---------- --------- PRIMARY EARNINGS PER SHARE - - -------------------------- Net income $ 656 $ 158 ========= ======= Weighted average shares outstanding: Common stock outstanding from beginning of period 18,677 18,091 Pro-Rata Shares: Exercise of stock options 60 1 Dilutive effect of outstanding stock options 2 210 -------- -------- 18,739 18,302 ======== ======= Primary earnings per share $ .04 $ .01 ======== ======= FULLY DILUTED EARNINGS PER SHARE - - -------------------------------- Net income $ 656 $ 158 ========= ======= Weighted average shares outstanding: Common stock outstanding from beginning of period 18,677 18,091 Pro-Rata Shares: Exercise of stock options 60 1 Dilutive effect of outstanding stock options 2 210 -------- -------- 18,739 18,302 ======== ======= Fully diluted earnings per share $ .04 $ .01 ======== =======
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