This summary is based on the fourth quarter fiscal 2008 earnings call conducted by CKE Restaurants, Inc. (CKR: chart) on March 27, 2008.

Management:

President, Chief Executive Officer & Director: Andrew F. Puzder
Chief Financial Officer & Executive Vice President: Theodore Abajian
Executive Vice President, Supply Chain Management: John Dunion
Vice President, Investor Relations: John Beisler

Key Investors Issues

- EPS were 0 per share compared to 15 cents per share last year.
- Net income was $98,000 compared to net income of $10.3 million in the year-earlier period.
- Revenue fell 3% to $338.1 million from $349.2 million last year.

Fourth Quarter Highlights

Same-store sales increased 1.4% at Carl''s Jr. and 0.4% at Hardee''s company-operated restaurants, compared to the prior year quarter.

- Consolidated revenue was $338.1 million, a 3.2% decrease from the prior year quarter.
- Company-operated restaurants revenue was $259.9 million, a 6.5% decrease from the prior year quarter, reflecting the refranchising of 136 Hardee''s restaurants, offset somewhat by positive same-store sales and eight net new company-operated restaurants opened over the year.
- Franchised and licensed restaurants and other revenue increased 10%reflecting the refranchised restaurants and the addition of 66 net new franchised restaurants.

Operating income was $15.5 million versus $16.5 million in the prior year quarter.

The $1 million decrease in operating income was primarily attributable to a number of factors.

Consolidated food and packaging costs increased by 60 basis points (an impact of approximately $1.5 million), primarily due to a 150 basis point increase in food and packaging costs at Hardee''s resulting from substantial price increases in wheat and dairy products, which impacted Hardee''s food costs to a much greater degree than Carl''s Jr. because of Hardee''s larger breakfast daypart.

- Food and packaging costs at Carl''s Jr. decreased by 30 basis points due to price increases and lower food distribution costs. Food distribution costs decreased because the company incurred costs in the prior year quarter to relocate main distribution center and simultaneously install a new overall distribution management system and these costs did not recur in the current year period.
- Occupancy and other restaurant operating costs increased by 90 basis points (an impact of approximately $2.3 million), due primarily to higher depreciation expense related to ongoing remodel program.

General and administrative expenses decreased by $1.9 million.

- The decrease was primarily attributable to ongoing cost reduction efforts, the impact of refranchising program, and a reduction in management bonus expense, which were partially offset by a $0.2 million increase in share-based compensation expense.
- Facility action charges were $0.9 million, a decrease of $1.7 million from the prior year quarter.

Income before income taxes and discontinued operations was $1 million versus $12.9 million in the prior year quarter.

This year''s income before income taxes and discontinued operations decreased as a result of the factors discussed above, as well as a $11.7 million increase in interest expense (including a $9.5 million, or approximately 11 cents per share, expense to mark-to-market interest rate swap agreements), and a $0.9 million increase in other income.

Income from continuing operations was $0.2 million, or 0 cent per share, versus $12.2 million, or 17 cents per share, in the prior year quarter.

Effective tax rate is substantially higher than annual effective tax rate primarily as a result of the impact of recent IRS guidance that became effective during the fourth quarter of fiscal year.

Net income was $0.1 million, or 0 cent per share and includes a loss from discontinued operations of $0.1 million or 0 cents per share and the $9.5 million, or approximately 11 cents per share, expense to mark-to-market interest rate swap agreements.

In the prior year quarter, net income was $10.3 million, or 15 cents per share, and included a loss from discontinued operations of $1.9 million, or 3 cents per share.