CKE Restaurants Inc. 2008 Annual Report
growing

growing bigger.

The company Carl Karcher built is growing bigger all the time — in lots of exciting ways. From expanding our menu options to advancing our footprint throughout the world, we’re building on the strengths of our two flagship brands — the embodiment of Carl’s vision.

growing better.

STEADILY IMPROVING OUR OPERATIONS

It’s not enough to keep getting bigger; it’s essential that we keep getting better. So we’re always looking for ways to improve our operations — a strategy that’s really paying off. Our Hardee’s® refranchising program is now in full swing. Average unit volume growth is steadily on the rise. And restaurant operating costs at Carl’s Jr.® remain among the lowest in the industry.

growing tastier.

COMMITTED TO INNOVATIVE THINKING

From the Patty Melt burger and Breakfast Club Sandwich at Carl’s Jr. to the Hawaiian Chicken Sandwich and Country Breakfast Burrito™ at Hardee’s, we are constantly introducing new items to delight our customers. Case in point: this year’s “Best of” poll published on Citysearch.com voted Hardee’s Thickburgers® the “Best Burgers” in five major cities. It all comes down to our commitment to using the highest quality ingredients — and to implementing the freshest ideas. The way we see it, innovation is a key value proposition for us. It’s the reason why the Carl’s Jr. and Hardee’s brands stay fresh while other brands get stale in an industry that thrives on new ideas.

growing bolder.

ADVERTISING WITH IMPACT

Our company has a history of taking risks with our advertising because we believe we must take risks to get our point across in today’s cluttered media environment — especially among our prime target audience: “young hungry guys,” ages 18–35. Our provocative ad campaigns (with slogans like “Don’t bother me, I’m eating®,” and “If it doesn’t get all over the place, it doesn’t belong in your face®”) not only get talked about, they get results.

growing fresher.

RENOVATING OUR STORES

Many of our stores are currently undergoing a facelift, as part of a comprehensive $140 million renovation program in both the Carl’s Jr. and Hardee’s brands. There’s a new look inside and out — including an updated logo on the signage.

It’s all part of our ongoing effort to improve customers’ overall store experience, whether they eat in or take out. After all, this is a company that’s never been satisfied to rest on its laurels.

growing friendlier.

SIX DOLLAR SERVICE

At Carl’s Jr. and Hardee’s, we‘re making an all-out effort to ensure there’s no gap between our premium burgers and the level of quality, service, and cleanliness we deliver in every one of our restaurants. The way we see it, premium food and premium service go hand in hand. And every customer, at every store, should be greeted promptly and graciously — and always with a smile.

growing smarter.

OUR DUAL-BRANDING STRATEGY

More than a decade ago, the Company embarked on an interesting marketing concept. We now offer our Green Burrito® Mexican fare in various Carl’s Jr. locations and Red Burrito® menu items in select Hardee’s stores. The strategy is proving to be very successful. Sales achieved in the dual-branded units of both Carl’s Jr. and Hardee’s are significantly higher than in those stores where this initiative has not yet been introduced.

growing newer.

NEW STORE PROTOTYPES

To keep pace with the latest trends in the industry, CKE Restaurants, Inc. is exploring new design prototypes in select stores domestically and abroad. It’s all part of an effort to stay ahead of the curve in every aspect of our value proposition. The goal here is not just architectural and cosmetic but also operational: We’re looking at how store design and format affect everything from food preparation to customer service.

growing worldlier.

A PROGRAM OF EXPANSION

Internationally, we added 50 new units in fiscal 2008, including stores in new markets like Malaysia and American Samoa. This makes a total of 96 net new restaurants added abroad in the past four years — that’s more than half of our franchise growth. With the Company experiencing strong sales growth abroad, we continue to target new international markets for expansion, including China, Canada and Australia. Domestically, we’re also growing by leaps and bounds — we opened 71 units this past year alone.