CARPINTERIA, Calif. — CKE Restaurants Inc. owner, operator and franchisor of the Carl's Jr., Hardee's, and La Salsa Fresh Mexican Grill restaurant brands, announced today that it has entered into an agreement for the sale of La Salsa Fresh Mexican Grill.
La Salsa is being acquired by Thousand Oaks, Calif.-based Baja Fresh Mexican Grill, led by David Kim and M Plus Capital, based in Santa Monica, Calif.
Under the agreement, Santa Barbara Restaurant Group Inc., a wholly-owned subsidiary of CKE, is expected to sell its 100 percent equity interest in La Salsa Inc. and La Salsa of Nevada Inc. The transaction is subject to customary closing conditions and is expected to close by the end of June 2007.
The transaction is not expected to have a material impact on the future earnings of CKE on a consolidated basis.
"Our focus is on growing Carl's Jr. and Hardee's, including dual branding them with our Mexican brands, Green Burrito and Red Burrito," said Andrew F. Puzder, CKE president and chief executive officer. "While we believe in La Salsa's potential, we also believe our best opportunity for improving earnings and cash flow is to devote our resources to the future of Carl's Jr. and Hardee's."
As of the end of its fiscal fourth quarter ended Jan. 29, 2007, CKE Restaurants Inc., through its subsidiaries, had a total of 3,105 franchised or company-owned restaurants in 43 states and in 13 countries, including 1,087 Carl's Jr. restaurants, 1,906 Hardee's restaurants and 96 La Salsa Fresh Mexican Grill restaurants.
