EX-12.1 48 dex121.htm STATEMENT REGARDING THE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Regarding the Computation of Ratio of Earnings to Fixed Charges

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) :

           

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):

           

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		  

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):

       

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.