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Carl’s Jr. to open 50 franchise restaurants in Russia

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CKE Restaurants Inc. (Carpinteria, Calif.) has announced that its subsidiary, U.S. hamburger chain Carl’s Jr., closed a deal to develop 50 new franchise restaurants in the Russian Federation over the next eight years.

The company has entered into a franchise and development agreement with Bright Star LLC, one of the leading food companies in Russia, and expects to open Russia’s first Carl’s Jr. in early 2006.

“Our goal is to take a leadership position in the Russian fast food market,” said Bright Star director Paul Pasco. “The Carl’s Jr. concept is the perfect vehicle to achieve this goal. During our fact-finding visit to the United States last year, we met with most of the players in this market segment and ate a lot of burgers. Carl’s Jr. was far and away our first choice.”

To develop the project, Bright Star has assembled a team that is well versed in the Russian marketplace. “With this team, along with the help of CKE’s international division, we believe we can make quite a splash in the local market,” said Pasco. “CKE has tremendous experience working in developing countries, and understands the flexibility needed in such a venture. That flexibility, along with the concept itself, made CKE very attractive for our shareholders as well as our management team.”

CKE Restaurants has been steadily increasing its international presence. Its Carl’s Jr. and Hardee’s restaurants currently operate 204 locations in 13 countries. Ned Lyerly, CKE Restaurants vp, international, said the strategic expansion into Russia was based on the country’s growing economic capability and its broad acceptance of western goods and services. “The Russian Federation is a dynamic, emerging market with a strong appetite for western food. Our premium burgers will be a perfect fit,” said Lyerly.

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