CKE Restaurants and GB Foods execute Settlement and Development Agreement.ANAHEIM, Calif.--(BUSINESS WIRE)--May 30, 1995--CKE Restaurants Inc. (NYSE NYSE See: New York Stock Exchange :CKR CKR CKE Restaurants, Inc. (stock symbol) CKR Check Request CKR Common Key References ) and GB Foods Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GBFC GBFC Grace Bible Fellowship Church (Melissa, Texas) ) Tuesday announced that they have executed a Settlement and Development Agreement. Pursuant to the terms of the Agreement, the two companies have agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy a five-year business plan which will convert a minimum of 140 Carl's Jr. restaurant locations to Carl's Jr./Green Burrito Dual Concept locations. The total number of conversions over time will be a function of Carl's Jr. additional conversions beyond the minimum, and conversions by franchises who will be permitted to qualify for the Dual Concept. The expansion of the Dual Brand Concept is based on the successful test results Carl's Jr. and Green Burrito Green Burrito is an American fast-food restaurant chain run by CKE Restaurants, Inc., located mostly on the Western Half of the United States in Pacific, Mountain and West Coast regions, and serves fast-food Mexican food. achieved over the past eight months at three Southern California locations. The agreement entered into Tuesday settles all past litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. between the parties. The parties determined that their best interests were in pursuing a mutually beneficial business relationship rather than litigation. "The Green Burrito test has demonstrated the viability of the Dual Concept format," said William P. Foley II, chairman and chief executive officer of CKE CKE Clock Enable (memory signal) CKE Carl Karcher Enterprises, Inc. (restaurant chain) CKE Certified Kitchen Design Educator CKE Catia Knowledge Engineering CKE Content and Knowledge Engineering Restaurants Inc. "Revenues have grown substantially at our three pilot test sites and sales in the three test locations continue to show revenue growth of 30% over the same period a year earlier. We are enthusiastic about the growth prospects as this project rolls out." Tom Thompson, president of Carl Karcher Enterprises, stated: "This creates a very appealing Dual Concept expansion opportunity. the products fit well together and consumer response has been excellent. We have our costs and profits close to where we want them and are ready to roll. With the agreement we signed today, we have succeeded in bringing variety to our menu in an innovative way. This is good news to our guests and to our stockholders." William M. Theisen, chairman and chief executive officer of GB Foods Corp. commented: "Everybody wins. With this roll-out we have an innovative well-tested Mexican food concept working in concert with the very solid Carl's Jr. chain which has great market penetration. What the consumer gets is a market-tested array of Mexican specialities alongside the Carl's Jr. high-quality line of charbroiled hamburgers and chicken sandwiches. It is a great fit that drives lunch sales and builds dinner sales." The three existing Carl's Jr./Green Burrito restaurants are located in Carson, Dana Point, and La Quinta, Calif. Plans call for additional locations to commence the conversion process during July 1995. CONTACT: CKE Restaurant, Inc. William P. Foley, II; 714/622-4545 or Andrew Puzder; 714/622-4333 or GB Foods Corp. William M. Theisen; 402/571-1128 or Bruce H. Haglund; 714/752-1100 |
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