• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

The number one topic shareholders want to talk about when it comes to CKE Restaurants is the company's cost structure, especially G&A. Since we are awaiting CKR FY08 proxy, we thought it would be a good time to focus on compensation trends for CKR's senior management.
  • We believe that investors have a reason to be concerned about the level of G&A spending at the company. As seen in Chart 1, since 2002 CKE restaurants system-wide store count has declined by 8.2%.
  • The company has stated publically that its incremental spending in G&A per store is around $20,000 to $24,000 per year. Therefore, given the decline in the system-wide store base, G&A should be $5-7 million lower form the levels seen in 2003.
  • Despite the system-wide store count declining by 8%, G&A per store has increased 39.8%