CKE Restaurants updates three-year capital spending plan to reduce expenditures

By Jennifer Lanning Drey

Portland, Ore., July 9 - CKE Restaurants, Inc. recently updated its capital spending plan for the next three years to reduce spending by $54 million, Ted Abajian, chief financial officer of CKE, said during a Wednesday presentation at the Oppenheimer Consumer Growth Conference in Boston.

The company expects the reduction to allow it to fund its capital program without incurring significant debt, he said.

As previously reported, in June CKE shareholder Ramius LLC said it was disappointed in the company's ongoing commitment to an aggressive capital expenditure program.

CKE's plans for growth include opening 126 new units this year and remodeling 150 stores. The company expects to remodel 150 stores per year going forward, Abajian said.

CKE is also looking to expand internationally, primarily in Canada and Australia, but also in Europe and South America.

At the same time, CKE is also working to shift its franchise mix toward fewer company-owned stores in order to increase cash flow.

CKE is a Carpinteria, Calif., quick-service restaurant franchisor and operator.

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