CKE Signs Texas Franchise Deal

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CKE Restaurants Inc. said Tuesday it signed a franchise deal with RWJP Star Enterprises that includes opening at least 121 Carl’s Jr. restaurants in Texas over the next 10 years.

The Carpinteria operator Carl’s Jr. and Hardee’s fast food chains did not disclose terms of the agreement with the new franchise partners, Jim Peters and Richard White, who have previous non-restaurant retail experience. Peters previously was president and chief operating officer of Ross Stores Inc.

So far in its fiscal year, CKE has signed 18 franchise development deals, and plans to add more than 800 restaurants over the next five years. CKE said it is being aggressive in Texas because the brand has been well received in the state and it considers the business environment favorable. There are 16 franchised Carl’s Jr. restaurants in Texas and three company-owned ones.

The company had 3,110 franchised, licensed or company-operated restaurants in 42 states and in 14 countries as of the fiscal third quarter ended Nov. 2.

CKE shares were up 24 cents, or 2.7 percent, to $9.11 in morning trading on the New York Stock Exchange.

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