EX-12.1 2 d275858dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12.1

CKE RESTAURANTS, INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

(Unaudited)

 

     Successor         Predecessor  
     Fiscal
2012		     Twenty-Nine
Weeks  Ended
January 31,
2011		         Twenty-Four
Weeks  Ended
July 12,
2010		     Fiscal
2010		     Fiscal
2009		     Fiscal
2008		  

Earnings(1):

                 

(Loss) income before income taxes and discontinued operations

    $ (11,340 )    $ (39,301 )        $ 257      $ 63,176      $ 58,489      $ 59,731   

Fixed charges

      109,493        61,523            22,973        50,413        59,977        64,291   

Less: capitalized interest

      (461 )      (414 )          (282 )      (766 )      (1,294 )      (2,059 ) 
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  
   $ 97,692      $ 21,808          $ 22,948      $ 112,823      $ 117,172      $ 121,963   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges(2):

                 

Interest expense

    $ 77,366      $ 43,681          $ 8,617      $ 19,254      $ 28,609      $ 33,033   

Capitalized interest

      461        414            282        766        1,294        2,059   

Interest component of rent expense

      31,666        17,428            14,074        30,393        30,074        29,199   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  
   $ 109,493      $ 61,523          $ 22,973      $ 50,413      $ 59,977      $ 64,291   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      —          —              —          2.2        2.0        1.9   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Deficiency (if fixed charges exceed earnings)

    $ (11,801 )    $ (39,715 )        $ (25 )    $ —        $ —        $ —     

Rent expense

      94,999        52,285            42,221        91,178        90,221        87,597   

Interest component (1/3 of rent expense)

      31,666        17,428            14,074        30,393        30,074        29,199   

 

(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.