Wikipedia

CKE Restaurants

"CKE" redirects here. For other uses, seeCKE (disambiguation).

CKE Restaurants Holdings, Inc.(an acronym forCarl Karcher Enterprises) is an Americanfast foodcorporation and is the parent organization for theCarl's Jr.,Hardee's,Green Burrito, and Red Burrito brands.[4][5]CKE Restaurants is headquartered inFranklin, Tennessee.[6]

CKE Restaurants Holdings, Inc.
Company typePrivate
IndustryRestaurants
Founded1956;68 years ago(1956)inAnaheim, California,US
FounderCarl Karcher
Headquarters
Franklin,Tennessee
,
US
Key people
Max Wetzel (CEO)
RevenueIncreaseUS$1.280 billion (2012)
IncreaseUS$68.897 million (2012)
IncreaseUS$-6.261 million (2012)
Total assetsDecreaseUS$1.480 billion (2012)
Total equityDecreaseUS$414.7 million (2012)
Number of employees
20,200 (Jan 2012)
Subsidiaries
Websiteckr
Footnotes / references
[1][2][3]

In October 2020, CKE Restaurants operated orfranchisedto locations in 44 US states and 43 foreign countries andUS territories.[2][7]

History

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1940s

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In 1941, Carl's Jr. founder,Carl Karcher,entered the fast food market by purchasing ahot dog cartinLos Angeles.[2][8]

1950s

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In 1956, Karcher opened the first Carl's Jr. restaurants inAnaheimandBrea, California.[3][9]

1990s

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In 1996, CKE acquired Rally's andTaco Bueno.Rally's was later sold to Checkers in 1999.Checkers and Rally'sthen followed a similar regionalization concept as CKE has for its Carl's Jr. and Hardee's chains. Taco Bueno was sold in 2001 when private investment group Jacobson Partners purchased the chain for US$72.5 million dollars to help aid CKE Restaurants in a debt battle.[10]

In 1997, CKE acquired Hardee's from Canadian-based companyImasco.[11]

2000s

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In September 2000,Andrew Puzderwas named CEO.[12]Prior to becoming the CEO, Puzder had been the personal attorney to the founder Karcher since 1986.[13]

In March 2002, CKE purchasedSanta Barbara Restaurant Group(SBRG) and acquired direct ownership of theGreen Burritobrand as part of the sale.

2010s

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On February 26, 2010,THL Partnersagreed to acquire CKE Restaurants.[14]However, CKE Restaurants was, instead, acquired by Columbia Lake Acquisition Holdings, an affiliate of Apollo Management VII in July 2010, after CKE accepted a $693.9 million takeover offer fromApollo Global Management,ending the earlier takeover agreement with THL Partners.[15]

On November 20, 2013,Roark Capital Groupacquired a piece of CKE from Apollo Global Management for $1.65–$1.75 billion.[16]

On March 4, 2016, CKE Restaurants Holdings announced that they would be consolidating their corporate offices inSt. Louis, Missouri,andCarpinteria, California,and moving them toFranklin, Tennessee.[6][8]CKE's Anaheim, California, office remained open until it was consolidated with the Franklin headquarters in 2018, with most of the Anaheim office's jobs outsourced to India and the Philippines.[3]

In December 2016 Andrew Puzder was nominated by President-electDonald TrumpasUS Secretary of Laborand resigned from CKE Restaurants as CEO in March 2017.[17][18]Puzder ultimately withdrew from the nomination after his own admission of hiring an undocumented immigrant, failing to pay taxes and controversy from his companies' labor violations became public during the confirmation process.[19][20][21][22]

On March 21, 2017, CKE announced the selection of Jason Marker as CEO for the company, succeeding Andrew Puzder. Marker, aNew Zealandnative, had previously served as the president ofKentucky Fried Chicken US,a subsidiary ofYum! Brandswhich is a direct competitor to CKE Restaurants. In June 2018, Marker was the subject of an age discrimination suit by a 58-year-old CKE marketing employee who was terminated in 2017 after 16 years of employment and had relocated with the company to Tennessee.[23]The suit alleged Marker "began to publicly and privately display his shock and disgust with the fact that the CKE executive and management team consisted primarily of employees over the age of 50.", with Marker reportedly saying it was "depressing" and "something had to be done" about it. The suit also listed four top officials in the company over 50 who had been replaced by younger employees.[24]

On April 12, 2019, Ned Lyerly was named CEO and appointed to CKE's board of directors. Lyerly had worked with CKE for over 30 years at the time of his appointment and was previously the president of CKE's international operations.[25]

2020s

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On 17 March 2023 CKE announced the appointment of Max Wetzel as Chief Executive Officer, effective immediately.[26]Mr. Wetzel was previously Chief Operating Officer of Papa John's International, Inc., one of the largest franchisors of restaurants in the world, with over 5,000 restaurants across 48 countries and territories.

Fundraising

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CKE conducts an annual Stars for Heroes in-store fundraising campaign by soliciting donations from customers at both Hardee's and Carl's Jr. restaurants to benefit US militaryveteransand their families. Since the program's launch in 2011, Stars for Heroes raised nearly US$5 million by 2015.[27]

International

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As of October 2020,there were over 3,800 franchised or company-operated restaurants in 44 US states and 43 foreign countries andUS territories.[2][28]

Criticisms and controversies

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Hypersexualized ads

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The 2005 launch of a commercial ofParis Hiltonsensually washing a Bentley in a bikini, marked the start of Carl's Jr. and Hardee's supermodel-centric marketing strategy. Since then Carl's Jr. ads have featured a number of female celebrities includingHeidi Klum,Kim Kardashian,Kate Upton,andKatherine Webb.[29][30][31][32][33][34][35] A study found that 52 percent of viewers surveyed found a Carl's Jr. commercial starring bombshell Charlotte McKinney offensive.[36]Carl’s Jr. is led by parent company CKE Restaurants Holdings, and from 2000 to 2017, CKE was run byAndrew F. Pudzer,who was a very vocal advocate of the racy ads.[37]

By the end of 2019, the company decided to change their advertising direction after partnering up with72andSunnyadvertising agency.[38]“Our plan moving forward is really about how to keep food at the center of what we’re doing,” said Chad Crawford, CKE’s chief brands officer.[39]

Animal Welfare Policies

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In September 2007, after more than a year of discussions withPETA,CKE Restaurants announced a new animal welfare program that would phase in cage-free eggs, and began sourcing pork from suppliers that did not use gestation crates for pregnant pigs. The plan also gave consideration to poultry suppliers that were willing to use controlled-atmosphere killing, which was the most humane form of slaughter available.[40][41]

In July 2016 CKE Restaurants announced that it would work to ensure that its pork supply is purchased from suppliers who use group housing methods for pigs.[42][43]CKE also promised to switch to 100% cage-free eggs by 2025.[44]

In December 2018 the chain became the first fast-food restaurant to serveBeyond Meatfor breakfast, lunch, and dinner.[45]

References

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  1. ^"CKE Restaurants, Form 10-K, Annual Report, Filing Date April 11, 2012"(PDF).secdatabase.RetrievedMarch 26,2013.
  2. ^abcd"Fact Sheet".Carl's Jr.Archived fromthe originalon 2020-10-17.Retrieved2020-10-17.
  3. ^abcChen, I-Chun (2018-11-20)."Carl's Jr. parent CKE closing shop in Anaheim".L.A. Biz.The Business Journals.Retrieved2020-10-17.
  4. ^"CKE RESTAURANTS INC Form 8-K Current Report Filed 2013-03-18".Edgar.secdatabase.Retrieved2017-02-15.
  5. ^"CKE Restaurants, Form 10-Q, Quarterly Report, Filing Date December 12, 2012".secdatabase.RetrievedMarch 26,2013.
  6. ^ab"Hardee's parent moving HQ to Nashville area".The Tennessean.Retrieved2020-10-17.
  7. ^"CKE Restaurants Holdings, Inc. Opens 700th International Restaurant | CKE Restaurants Investor Center".investor.ckr.Archived fromthe originalon 2016-12-23.Retrieved2020-10-17.
  8. ^abLuna, Nancy (2017-01-19)."Bye, bye Carl's Jr.: Parent company CKE moving California HQ to Nashville".Orange County Register.Retrieved2020-10-17.
  9. ^Malnic, Eric (2008-01-12)."Carl Karcher, 90; entrepreneur turned hot dog stand into a fast-food empire".Los Angeles Times.Retrieved2020-10-17.
  10. ^"CKE WILL SELL ITS TACO BUENO UNIT FOR $72.5 MILLION".The New York Times.15 March 2001.Retrieved29 May2011.
  11. ^"CKE RESTAURANTS INC (Form Type: 8-K, Filing Date: 05/05/1997)".edgar.secdatabase.Retrieved2016-04-05.
  12. ^Melanie, Trottman; Jargon, Julie; Bender, Michael C. (2016-12-08)."Trump Picks Fast-Food Executive Andy Puzder as Nominee for Labor Secretary".The Wall Street Journal.Retrieved2020-10-18.
  13. ^Ramirez, Jaclyn (2020-01-16)."Andy Puzder, Former CEO of CKE Restaurants, Named Senior Fellow at Pepperdine School of Public Policy".Business Wire.Retrieved2020-10-18.
  14. ^"CKE RESTAURANTS INC (Form Type: 8-K, Filing Date: 02/26/2010)".edgar.secdatabase.Retrieved2016-04-05.
  15. ^"UNITED STATES SECURITIES AND EXCHANGE COMMISSION".
  16. ^"Roark Capital to buy CKE Restaurants from Apollo".Reuters.2013-11-20.Retrieved2016-04-05.
  17. ^Cao, Rachel (2017-03-21)."Former secretary of Labor pick Andy Puzder resigns as CEO of CKE Restaurants".CNBC.Retrieved2020-10-17.
  18. ^Everett, Burgess; Palmeri, Tara; Levine, Marianne (2017-02-15)."Labor nominee Puzder withdraws".Politico.Retrieved2020-10-17.
  19. ^Noguchi, Yuki (2017-02-15)."Trump Labor Nominee Andrew Puzder Withdraws, First Cabinet Pick To Fall".NPR.Retrieved2020-10-17.
  20. ^McCormack, Michael; Glenn-Gregg, Simon (2017-01-12)."Mapping Andy Puzder's Labor Violations".The Century Foundation.Retrieved2020-10-18.
  21. ^Robaton, Anna (2017-01-27)."Labor Secretary nominee's company underpays workers, group says".CBS News.Retrieved2020-10-18.
  22. ^Nass, Rachel (2017-01-12)."Carl's Jr. Workers Detail Mistreatment at Puzder's Restaurants".National Employment Law Project.Archivedfrom the original on 2020-05-03.Retrieved2020-10-18.
  23. ^Elliott, Stephen (28 June 2018)."New Hardee's, Carl's Jr. CEO accused of age discrimination".Nashville Post.Retrieved2020-10-17.
  24. ^Snyder, Eric (2018-06-29)."New Hardee's CEO accused of age discrimination".The Business Journals.Retrieved2020-10-17.
  25. ^Maze, Jonathan (2019-04-12)."Ned Lyerly named CEO of Hardee's, Carl's Jr. owner CKE Restaurants".Restaurant Business.Retrieved2020-10-17.
  26. ^Inc, CKE Restaurants Holdings."CKE RESTAURANTS APPOINTS MAX WETZEL AS CHIEF EXECUTIVE OFFICER".prnewswire(Press release).Retrieved2024-01-15.{{cite press release}}:|last=has generic name (help)
  27. ^"Carl's Jr. and Hardee's Raise $1.4 Million for U.S. Military Charities | CKE Restaurants Investor Center".investor.ckr.Archived fromthe originalon 2016-04-25.Retrieved2020-10-17.
  28. ^"Carl's Jr".carlsjr.Retrieved2016-04-05.
  29. ^"Carl's Jr. debuts sexist Super Bowl 2015 commercial".The Washington Post.February 1, 2015.
  30. ^"Slutburgers Gone Wild! Carl's Jr. Ads Through The Years".April 25, 2011.
  31. ^"Paris Hilton Carl's Jr Commercial 2005".YouTube.23 June 2017.
  32. ^"Kim Kardashian Carl's Jr. Commercial - Social Media Endorsement".YouTube.8 August 2010.
  33. ^"New Carl's Jr.TV ads ft. Katherine Webb".YouTube.
  34. ^"Heidi Klum as Mrs Robinson in Carls Jr Commercial TV Advert Spot for Jim Beam Bourbon Burgers".YouTube.26 September 2015.
  35. ^"Carl's Jr Tex Mex Bacon Thickburger Borderball".YouTube.9 April 2018.
  36. ^"SEX DOESN'T SELL, ESPECIALLY FOR CARL'S JR., SAYS COPY-TESTING FIRM".Ad Age.
  37. ^"The CEO of Carl's Jr. Doesn't Care If You're Offended by the Chain's Sexy Ads".Franchise 500 by Entrepreneur.
  38. ^"CARL'S JR. AND HARDEE'S BRING BACK 72ANDSUNNY AS CREATIVE AGENCY".Ad Age.
  39. ^Hsu, Tiffany (13 November 2019)."Carl's Jr.'s Marketing Plan: Pitch Burgers, Not Sex".The New York Times.
  40. ^"Victory! Hardee's and Carl's Jr. Make Big Changes".Peta.26 September 2007.
  41. ^"Hardee's, Carl's Jr. and PETA reach deal".NBC News.26 September 2007.
  42. ^"CKE to End Gestation Crate Pig Confinement".QSR.6 July 2012.
  43. ^"Hardee's, Carl's Jr. commit to group sow housing".Watt Poultry.31 January 2016.
  44. ^"Animal Welfare Statement".CKR.
  45. ^"Carl's Jr. Debuts Vegan-Friendly Breakfast Burrito With Beyond Meat".Peta.31 December 2018.

Further reading

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  • CKE Restaurants corporate website
    • Historical business data for CKE Restaurants:
    • SEC filings
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