EX-12.1 6 ex121.htm EXHIBIT 12.1 - RATIO OF EARNINGS TO FIXED CHARGES ex121.htm
Exhibit 12.1

CKE RESTAURANTS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
(Unaudited)

   
Successor
   
Predecessor
 
   
Twenty-Nine
Weeks Ended
January 31, 2011
   
Twenty-Four
Weeks Ended
July 12, 2010
   
Fiscal 2010
   
Fiscal 2009
   
Fiscal 2008
   
Fiscal 2007
 
Earnings(1):
                                   
(Loss) income before income taxes and discontinued operations
  $ (40,083 )   $ 257     $ 63,176     $ 58,489     $ 59,731     $ 88,213  
Fixed charges
    61,527       22,973       50,413       59,977       64,291       50,231  
Less: capitalized interest
    (414 )     (282 )     (766 )     (1,294 )     (2,059 )     (784 )
    $ 21,030     $ 22,948     $ 112,823     $ 117,172     $ 121,963     $ 137,660  
                                                 
Fixed charges(2):
                                               
Interest expense
  $ 43,689     $ 8,617     $ 19,254     $ 28,609     $ 33,033     $ 19,768  
Capitalized interest
    414       282       766       1,294       2,059       784  
Interest component of rent expense
    17,424       14,074       30,393       30,074       29,199       29,679  
    $ 61,527     $ 22,973     $ 50,413     $ 59,977     $ 64,291     $ 50,231  
                                                 
Ratio of earnings to fixed charges
    0.3       1.0       2.2       2.0       1.9       2.7  
                                                 
Deficiency (if fixed charges exceed earnings)
  $ (40,497 )   $ (25 )   $     $     $     $  
Rent expense
    52,273       42,221       91,178       90,221       87,597       89,038  
Interest component (1/3 of rent expense)
    17,424       14,074       30,393       30,074       29,199       29,679  
____________
(1)
“Earnings” consists of (loss) income 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.