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Free Hospitality Publications
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Restaurant Industry News
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Tuesday October 24th, 2006 |
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CKE Restaurants, Inc. Announces Expansion of Stock Repurchase Program
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The board increased the Company's repurchase authority under its stock repurchase program by $50 million, for a new limit of $100 million. |
The Company's stock repurchase program was initially put into effect on April 13, 2004, with a limit of $20 million, which the board increased to $50 million on July 27, 2006. The Company has currently utilized approximately $34,946,000 under this program, leaving a balance available for future repurchases of approximately $63,054,000.
Within this program, the Company has been repurchasing $2 million every quarter under a 10b5-1 plan. The board also authorized the expansion of this plan to $5 million per quarter, through January 2008, which will result in the repurchase of approximately $30 million of stock over the remaining term of this plan.
Repurchases may be made from time to time by the Company in the open market or in privately negotiated transactions in compliance with Securities and Exchange Commission guidelines.
"We believe that the repurchase of our common stock has proven to be an excellent investment of corporate funds and a valuable tool in returning capital to our stockholders since the inception of the program in April 2004," stated Andrew F. Puzder, the Company's president and chief executive officer. "We believe that the repurchase of our shares represents an attractive investment opportunity for the Company, which the Company will take advantage of through purchases under its 10b5-1 plan and through opportunistic open-market and/or privately negotiated transactions as market conditions may warrant."
As of the second fiscal quarter ended Aug. 14, 2006, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,131 franchised, licensed or company-operated restaurants in 43 states and in 13 countries, including 1,072 Carl's Jr. restaurants, 1,945 Hardee's(R) restaurants and 98 La Salsa Fresh Mexican Grill(R) restaurants.
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