The two new Carl's Jr. locations are franchise operations through an agreement with Russia-based franchisee Bright Star LLC, which signed the deal with the Carpinteria-based chain last year. Russia represents an emerging market with "a strong appetite for western food," says Ned Lyerly, SVP of global franchise development for CKE Restaurants.
The 50-restaurant development agreement between the US firm and Bright Star LLC is part of a CKE focus on international expansion that now counts more than 235 restaurants in 14 countries. The overseas operations are part of approximately 3,131 franchise restaurants and company-owned operations of Carl's Jr. and its sister CKE subsidiary, Hardee's. The 3,131 total comprises 1,072 Carl's Jr. restaurants, 1,945 Hardee's locations and 98 La Salsa Fresh Mexican Grill restaurants.
In addition to its international expansion, CKE has continued its US growth as well, with plans announced earlier this year for 15 new Carl's Jr. and five new Hardee's between summer and the end of the year. Company executives said during a conference call for their most recent earnings statement that they would like to open a minimum of 50 company-owned units a year for the next three to four years.
The chain also is spending money to remodel existing stores. Although it has not outlined a specific schedule for the renovations, the parent company plans $650 million in capital expenditures over the next five years that will include remodeling, new units and other capital projects.
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