----

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| þ                                                  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|---------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                    |                                                                                     |
| For the quarterly period ended November 1, 2010         |
|                                                    |  OR                                                                            |
| o                                                       | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from __________ to__________. |

| Delaware                                                 |   | 33-0602639                           |
|----------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction                             |   | (I.R.S. Employer Identification No.) |
| Of Incorporation or Organization)                        |   |                                 |
|                                                     |   |                                 |
| 6307 Carpinteria Avenue, Ste. A, Carpinteria, California |   | 93013                                |
| (Address of Principal Executive Offices)                 |   | (Zip Code)                           |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o |
|---------------------------|---------------------|------------------------------|-----------------------------|

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|                                                                                                                                                                                                               | Page No. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Part I. Financial Information                                                                                                                                                                                      |
| Item 1. Condensed Consolidated Financial Statements (unaudited):                                                                                                                                                   |     |
| Condensed Consolidated Balance Sheets as of November 1, 2010 (Successor) and January 31, 2010 (Predecessor)                                                                                                        | 3        |
| Condensed Consolidated Statements of Operations for the twelve weeks ended November 1, 2010 (Successor) and twelve weeks ended November 2, 2009 (Predecessor)                                                      | 4        |
| Condensed Consolidated Statements of Operations for the sixteen weeks ended November 1, 2010 (Successor), twenty-four weeks ended July 12, 2010 (Predecessor) and forty weeks ended November 2, 2009 (Predecessor) | 5        |
| Condensed Consolidated Statements of Stockholders’ Equity for the twenty-four weeks ended July 12, 2010 (Predecessor) and sixteen weeks ended November 1, 2010 (Successor)                                   | 6        |
| Condensed Consolidated Statements of Cash Flows for the sixteen weeks ended November 1, 2010 (Successor), twenty-four weeks ended July 12, 2010 (Predecessor) and forty weeks ended November 2, 2009 (Predecessor) | 7        |
| Notes to Condensed Consolidated Financial Statements                                                                                                                                                               | 8        |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                | 26       |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                 | 48       |
| Item 4. Controls and Procedures                                                                                                                                                                                    | 48       |
|                                                                                                                                                                                                               |
| Part II. Other Information                                                                                                                                                                                         |
| Item 1. Legal Proceedings                                                                                                                                                                                          | 49       |
| Item 1A. Risk Factors                                                                                                                                                                                              | 50       |
| Item 6. Exhibits                                                                                                                                                                                                   | 60       |
| Signatures                                                                                                                                                                                                         | 61       |
|     Exhibit 31.1                                                                                                                                                                                    |     |
|     Exhibit 31.2                                                                                                                                                                                    |     |
|     Exhibit 32.1                                                                                                                                                                                    |     |
|     Exhibit 32.2                                                                                                                                                                                    |     |

----

Item 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                           |   | Successor        |      |   | Predecessor      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|------------------|--------|
|                                                                                                                                           |   | November 1, 2010 |      |   | January 31, 2010 |   |
| ASSETS                                                                                                                                         |   |             |      |   |             |   |
| Current assets:                                                                                                                                |   |             |      |   |             |   |
| Cash and cash equivalents                                                                                                                      |   | $                | 49,494    |   |             | $      | 18,246 |   |
| Accounts receivable, net of allowance for doubtful accounts of $46 as of November 1, 2010 and $358 as of January 31, 2010                      |   |             | 34,995    |   |             |   | 35,016 |   |
| Related party trade receivables                                                                                                                |   |             | 324       |   |             |   | 5,037 |   |
| Inventories, net                                                                                                                               |   |             | 14,077    |   |             |   | 24,692 |   |
| Prepaid expenses                                                                                                                               |   |             | 13,417    |   |             |   | 13,723 |   |
| Assets held for sale                                                                                                                           |   |             | 451       |   |             |   | 500 |   |
| Advertising fund assets, restricted                                                                                                            |   |             | 18,510    |   |             |   | 18,295 |   |
| Deferred income tax assets, net                                                                                                                |   |             | 17,183    |   |             |   | 26,517 |   |
| Other current assets                                                                                                                           |   |             | 4,032     |   |             |   | 3,829 |   |
| Total current assets                                                                                                                           |   |             | 152,483   |   |             |   | 145,855 |   |
| Notes receivable, net of allowance for doubtful accounts of $0 as of November 1, 2010 and $379 as of January 31, 2010                          |   |             | 473       |   |             |   | 1,075 |   |
| Property and equipment, net of accumulated depreciation and amortization of $19,771 as of November 1, 2010 and $445,033 as of January 31, 2010 |   |             | 630,637   |   |             |   | 568,334 |   |
| Property under capital leases, net of accumulated amortization of $1,741 as of November 1, 2010 and $46,090 as of January 31, 2010             |   |             | 31,761    |   |             |   | 32,579 |   |
| Deferred income tax assets, net                                                                                                                |   |             | —   |   |             |   | 40,299 |   |
| Goodwill                                                                                                                                       |   |             | 193,443   |   |             |   | 24,589 |   |
| Intangible assets, net                                                                                                                         |   |             | 439,561   |   |             |   | 2,317 |   |
| Other assets, net                                                                                                                              |   |             | 23,006    |   |             |   | 8,495 |   |
| Total assets                                                                                                                                   |   | $                | 1,471,364 |   |             | $      | 823,543 |   |
|                                                                                                                                           |   |             |      |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                     |   |             |      |   |             |   |   |   |
| Current liabilities:                                                                                                                           |   |             |      |   |             |   |   |   |
| Current portion of bank indebtedness and other long-term debt                                                                                  |   | $                | 29        |   |             | $      | 12,262 |   |
| Current portion of capital lease obligations                                                                                                   |   |             | 5,367     |   |             |   | 7,445 |   |
| Accounts payable                                                                                                                               |   |             | 38,908    |   |             |   | 65,656 |   |
| Advertising fund liabilities                                                                                                                   |   |             | 18,510    |   |             |   | 18,295 |   |
| Other current liabilities                                                                                                                      |   |             | 100,592   |   |             |   | 95,605 |   |
| Total current liabilities                                                                                                                      |   |             | 163,406   |   |             |   | 199,263 |   |
| Bank indebtedness and other long-term debt, less current portion                                                                               |   |             | 589,765   |   |             |   | 266,202 |   |
| Capital lease obligations, less current portion                                                                                                |   |             | 31,924    |   |             |   | 43,099 |   |
| Deferred income tax liabilities, net                                                                                                           |   |             | 172,913   |   |             |   | — |   |
| Other long-term liabilities                                                                                                                    |   |             | 85,246    |   |             |   | 78,804 |   |
| Total liabilities                                                                                                                              |   |             | 1,043,254 |   |             |   | 587,368 |   |
|                                                                                                                                           |   |             |      |   |             |   |   |   |
| Commitments and contingencies (Notes 7, 9 and 15)                                                                                              |   |             |      |   |             |   |   |   |
| Subsequent events (Notes 7 and 9)                                                                                                              |   |             |      |   |             |   |   |   |
|                                                                                                                                           |   |             |      |   |             |   |   |   |
| Stockholders’ equity:                                                                                                                    |   |             |      |   |             |   |   |   |
| Predecessor: Common stock, $0.01 par value; 100,000,000 shares authorized; 55,290,626 shares issued and outstanding as of January 31, 2010     |   |             | —   |   |             |   | 553 |   |
| Successor: Common stock, $0.01 par value; 100 shares authorized, issued and outstanding as of November 1, 2010                                 |   |             | —   |   |             |   | — |   |
| Additional paid-in capital                                                                                                                     |   |             | 451,465   |   |             |   | 282,904 |   |
| Accumulated deficit                                                                                                                            |   |             | (23,355   | )      |             |   | (47,282 | ) |
| Total stockholders’ equity                                                                                                               |   |             | 428,110   |   |             |   | 236,175 |   |
| Total liabilities and stockholders’ equity                                                                                               |   | $                | 1,471,364 |   |             | $      | 823,543 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                          |   | Successor                         |    |   | Predecessor                       |   |
|-----------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|
|                                          |   | TwelveWeeks EndedNovember 1, 2010 |    |   | TwelveWeeks EndedNovember 2, 2009 |   |
| Revenue:                                      |   |                              |    |   |                              |   |
| Company-operated restaurants                  |   | $                                 | 250,097 |   |                              | $      | 246,696 |   |
| Franchised and licensed restaurants and other |   |                              | 34,430  |   |                              |   | 77,521 |   |
| Total revenue                                 |   |                              | 284,527 |   |                              |   | 324,217 |   |
| Operating costs and expenses:                 |   |                              |    |   |                              |   |   |   |
| Restaurant operating costs:                   |   |                              |    |   |                              |   |   |   |
| Food and packaging                            |   |                              | 73,879  |   |                              |   | 69,665 |   |
| Payroll and other employee benefits           |   |                              | 71,592  |   |                              |   | 71,386 |   |
| Occupancy and other                           |   |                              | 62,567  |   |                              |   | 60,874 |   |
| Total restaurant operating costs              |   |                              | 208,038 |   |                              |   | 201,925 |   |
| Franchised and licensed restaurants and other |   |                              | 16,943  |   |                              |   | 58,854 |   |
| Advertising                                   |   |                              | 14,880  |   |                              |   | 15,679 |   |
| General and administrative                    |   |                              | 29,977  |   |                              |   | 30,977 |   |
| Facility action charges, net                  |   |                              | 770     |   |                              |   | 520 |   |
| Other operating expenses, net                 |   |                              | 167     |   |                              |   | — |   |
| Total operating costs and expenses            |   |                              | 270,775 |   |                              |   | 307,955 |   |
| Operating income                              |   |                              | 13,752  |   |                              |   | 16,262 |   |
| Interest expense                              |   |                              | (17,685 | )      |                              |   | (6,430 | ) |
| Other income, net                             |   |                              | 748     |   |                              |   | 704 |   |
| (Loss) income before income taxes             |   |                              | (3,185  | )      |                              |   | 10,536 |   |
| Income tax (benefit) expense                  |   |                              | (2,855  | )      |                              |   | 4,379 |   |
| Net (loss) income                             |   | $                                 | (330    | )      |                              | $      | 6,157 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                          |   | Successor                          |    |   | Predecessor                         |   |
|-----------------------------------------------|--------|------------------------------------|---------|--------|-------------------------------------|--------|
|                                          |   | SixteenWeeks EndedNovember 1, 2010 |    |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Revenue:                                      |   |                               |    |   |                                |   |   |   |   |
| Company-operated restaurants                  |   | $                                  | 336,048 |   |                                | $      | 500,531 |   |   | $ | 847,654 |   |
| Franchised and licensed restaurants and other |   |                               | 45,419  |   |                                |   | 151,588 |   |   |   | 259,334 |   |
| Total revenue                                 |   |                               | 381,467 |   |                                |   | 652,119 |   |   |   | 1,106,988 |   |
| Operating costs and expenses:                 |   |                               |    |   |                                |   |   |   |   |   |   |   |
| Restaurant operating costs:                   |   |                               |    |   |                                |   |   |   |   |   |   |   |
| Food and packaging                            |   |                               | 99,188  |   |                                |   | 148,992 |   |   |   | 242,066 |   |
| Payroll and other employee benefits           |   |                               | 95,940  |   |                                |   | 147,187 |   |   |   | 241,142 |   |
| Occupancy and other                           |   |                               | 83,393  |   |                                |   | 119,076 |   |   |   | 201,461 |   |
| Total restaurant operating costs              |   |                               | 278,521 |   |                                |   | 415,255 |   |   |   | 684,669 |   |
| Franchised and licensed restaurants and other |   |                               | 22,178  |   |                                |   | 115,089 |   |   |   | 196,680 |   |
| Advertising                                   |   |                               | 19,728  |   |                                |   | 29,647 |   |   |   | 51,451 |   |
| General and administrative                    |   |                               | 49,641  |   |                                |   | 58,806 |   |   |   | 103,061 |   |
| Facility action charges, net                  |   |                               | 907     |   |                                |   | 590 |   |   |   | 3,022 |   |
| Other operating expenses, net                 |   |                               | 19,828  |   |                                |   | 10,249 |   |   |   | — |   |
| Total operating costs and expenses            |   |                               | 390,803 |   |                                |   | 629,636 |   |   |   | 1,038,883 |   |
| Operating (loss) income                       |   |                               | (9,336  | )      |                                |   | 22,483 |   |   |   | 68,105 |   |
| Interest expense                              |   |                               | (23,541 | )      |                                |   | (8,617 | ) |   |   | (14,834 | ) |
| Other income (expense), net                   |   |                               | 896     |   |                                |   | (13,609 | ) |   |   | 1,991 |   |
| (Loss) income before income taxes             |   |                               | (31,981 | )      |                                |   | 257 |   |   |   | 55,262 |   |
| Income tax (benefit) expense                  |   |                               | (8,626  | )      |                                |   | 7,772 |   |   |   | 22,460 |   |
| Net (loss) income                             |   | $                                  | (23,355 | )      |                                | $      | (7,515 | ) |   | $ | 32,802 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

|                                      |   | Common Stock |       |   |  Additional |   |          |  Accumulated |   |   | Total Stockholders’ |   |
|-------------------------------------------|--------|--------------|------------|--------|------------------|--------|---------------|-------------------|--------|--------|---------------------------|--------|
|                                      |   | Shares       |       |   | Amount           |   |          | Paid-In Capital   |   |   | Deficit                   |   |   | Equity |   |
| Predecessor:                              |   |         |       |   |             |   |          |              |   |   |                      |   |   |   |   |
| Balance as of January 31, 2010            |   |         | 55,290,626 |   |             | $      | 553           |              |   | $      | 282,904                   |   |   | $ | (47,282 | ) |   | $ | 236,175 |   |
| Forfeitures of restricted stock awards    |   |         | (78,484    | )      |             |   |  (1      | )                 |   |   | 1                         |   |   |   | — |   |   |   | — |   |
| Exercise of stock options                 |   |         | 154,317    |   |             |   |  2       |              |   |   | 1,061                     |   |   |   | — |   |   |   | 1,063 |   |
| Share-based compensation expense          |   |         | —    |   |             |   |  — |              |   |   | 4,710                     |   |   |   | — |   |   |   | 4,710 |   |
| Repurchase and retirement of common stock |   |         | (178,800   | )      |             |   |  (2      | )                 |   |   | (2,070                    | )      |   |   | — |   |   |   | (2,072 | ) |
| Net loss                                  |   |         | —    |   |             |   | —       |              |   |   | —                   |   |   |   | (7,515 | ) |   |   | (7,515 | ) |
| Balance as of July 12, 2010               |   |         | 55,187,659 |   |             | $      | 552           |              |   | $      | 286,606                   |   |   | $ | (54,797 | ) |   | $ | 232,361 |   |

|                             |   | Common Stock |    |   |  Additional |   |    |  Accumulated |   |   | Total Stockholders’ |   |
|----------------------------------|--------|--------------|---------|--------|------------------|--------|---------|-------------------|--------|--------|---------------------------|--------|
|                             |   | Shares       |    |   | Amount           |   |    | Paid-In Capital   |   |   | Deficit                   |   |   | Equity |   |
| Successor:                       |   |         |    |   |             |   |    |              |   |   |                      |   |   |   |   |
| Equity contribution              |   |         | 100     |   |             | $      | — |              |   | $      | 450,000                   |   |   | $ | — |   |   | $ | 450,000 |   |
| Share-based compensation expense |   |         | — |   |             |   | — |              |   |   | 1,465                     |   |   |   | — |   |   |   | 1,465 |   |
| Net loss                         |   |         | — |   |             |   | — |              |   |   | —                   |   |   |   |   (23,355 | ) |   |   | (23,355 | ) |
| Balance as of November 1, 2010   |   |         | 100     |   |             | $      | — |              |   | $      | 451,465                   |   |   | $ | (23,355 | ) |   | $ | 428,110 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                               |   | Successor                          |     |   | Predecessor                         |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------|----------|--------|-------------------------------------|--------|
|                                                                                               |   | SixteenWeeks EndedNovember 1, 2010 |     |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Cash flows from operating activities:                                                              |   |                               |     |   |                                |   |   |   |   |
| Net (loss) income                                                                                  |   | $                                  | (23,355  | )      |                                | $      | (7,515 | ) |   | $ | 32,802 |   |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |   |                               |     |   |                                |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                               | 23,721   |   |                                |   | 33,703 |   |   |   | 54,317 |   |
| Amortization of debt issuance costs and discount on notes                                          |   |                               | 1,115    |   |                                |   | 522 |   |   |   | 799 |   |
| Share-based compensation expense                                                                   |   |                               | 1,465    |   |                                |   | 4,710 |   |   |   | 6,216 |   |
| Provision for (recovery of) losses on accounts and notes receivable                                |   |                               | 62       |   |                                |   | (100 | ) |   |   | (346 | ) |
| Loss (gain) on sale of property and equipment and capital leases                                   |   |                               | 351      |   |                                |   | (1,326 | ) |   |   | 1,352 |   |
| Facility action charges, net                                                                       |   |                               | 907      |   |                                |   | 590 |   |   |   | 3,022 |   |
| Deferred income taxes                                                                              |   |                               | (8,150   | )      |                                |   | 8,241 |   |   |   | 19,078 |   |
| Other non-cash charges                                                                             |   |                               | —  |   |                                |   | — |   |   |   | 24 |   |
| Net changes in operating assets and liabilities:                                                   |   |                               |     |   |                                |   |   |   |   |   |   |   |
| Receivables, inventories, prepaid expenses and other current and non-current assets                |   |                               | 837      |   |                                |   | 4,826 |   |   |   | 4,859 |   |
| Estimated liability for closed restaurants and estimated liability for self-insurance              |   |                               | (825     | )      |                                |   | (2,318 | ) |   |   | (2,782 | ) |
| Accounts payable and other current and long-term liabilities                                       |   |                               | (7,754   | )      |                                |   | 4,317 |   |   |   | 7,345 |   |
| Net cash (used in) provided by operating activities                                                |   |                               | (11,626  | )      |                                |   | 45,650 |   |   |   | 126,686 |   |
| Cash flows from investing activities:                                                              |   |                               |     |   |                                |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                |   |                               | (18,565  | )      |                                |   | (33,738 | ) |   |   | (77,549 | ) |
| Acquisition of Predecessor                                                                         |   |                               | (693,478 | )      |                                |   | — |   |   |   | — |   |
| Proceeds from sale of property and equipment                                                       |   |                               | 46       |   |                                |   | 1,011 |   |   |   | 3,836 |   |
| Proceeds from sale of Distribution Center assets                                                   |   |                               | 1,992    |   |                                |   | 19,203 |   |   |   | — |   |
| Collections of non-trade notes receivable                                                          |   |                               | 282      |   |                                |   | 673 |   |   |   | 2,330 |   |
| Acquisition of restaurants, net of cash acquired                                                   |   |                               | —  |   |                                |   | — |   |   |   | (485 | ) |
| Other investing activities                                                                         |   |                               | 36       |   |                                |   | (284 | ) |   |   |  111 |   |
| Net cash used in investing activities                                                              |   |                               | (709,687 | )      |                                |   |  (13,135 | ) |   |   |  (71,757 | ) |
| Cash flows from financing activities:                                                              |   |                               |     |   |                                |   |   |   |   |   |   |   |
| Net change in bank overdraft                                                                       |   |                               | (5,247   | )      |                                |   | (7,364 | ) |   |   | 876 |   |
| Borrowings under revolving credit facilities                                                       |   |                               | —  |   |                                |   | 138,500 |   |   |   | 98,000 |   |
| Repayments of borrowings under revolving credit facilities                                         |   |                               | (34,000  | )      |                                |   | (134,500 | ) |   |   | (131,500 | ) |
| Repayments of Predecessor Facility term loan                                                       |   |                               | (236,487 | )      |                                |   | (10,945 | ) |   |   | (3,633 | ) |
| Proceeds from issuance of senior secured second lien notes, net of original issue discount         |   |                               | 588,510  |   |                                |   | — |   |   |   | — |   |
| Payment of debt issuance costs                                                                     |   |                               | (18,697  | )      |                                |   | — |   |   |   | — |   |
| Repayments of other long-term debt                                                                 |   |                               | (9       | )      |                                |   | (13 | ) |   |   | (17 | ) |
| Repayments of capital lease obligations                                                            |   |                               | (1,628   | )      |                                |   | (3,748 | ) |   |   | (5,637 | ) |
| Repurchase of common stock                                                                         |   |                               | —  |   |                                |   | (2,072 | ) |   |   | (1,690 | ) |
| Exercise of stock options                                                                          |   |                               | —  |   |                                |   | 1,063 |   |   |   | 569 |   |
| Tax impact of stock option and restricted stock award transactions                                 |   |                               | —  |   |                                |   | — |   |   |   | 131 |   |
| Dividends paid on common stock                                                                     |   |                               | —  |   |                                |   | (3,317 | ) |   |   | (9,829 | ) |
| Net advances from (to) affiliates of Apollo Management                                             |   |                               | 2,641    |   |                                |   | (2,641 | ) |   |   | — |   |
| Equity contribution                                                                                |   |                               | 450,000  |   |                                |   |  — |   |   |   |  — |   |
| Net cash provided by (used in) financing activities                                                |   |                               | 745,083  |   |                                |   |  (25,037 | ) |   |   |  (52,730 | ) |
| Net increase in cash and cash equivalents                                                          |   |                               | 23,770   |   |                                |   | 7,478 |   |   |   | 2,199 |   |
| Cash and cash equivalents at beginning of period                                                   |   |                               | 25,724   |   |                                |   | 18,246 |   |   |   | 17,869 |   |
| Cash and cash equivalents at end of period                                                         |   | $                                  | 49,494   |   |                                | $      | 25,724 |   |   | $ | 20,068 |   |

----

Note 1 — Basis of Presentation and Description of Business

|             |   | Carl’s Jr. |   |   | Hardee’s |   |   | Other  |   |   | Total   |   |
|------------------|--------|------------------|--------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|
| Company-operated |   |             | 424    |   |           |   | 467    |   |   |   | 1       |   |   |   | 892 |   |
| Franchised       |   |             | 675    |   |           |   | 1,222  |   |   |   | 11      |   |   |   | 1,908 |   |
| Licensed         |   |             | 146    |   |           |   | 207    |   |   |   | — |   |   |   | 353 |   |
| Total            |   |             | 1,245  |   |           |   | 1,896  |   |   |   | 12      |   |   |   | 3,153 |   |

----

----

| Total Consideration:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|
| Cash paid to shareholders                                                                                                                                                            |   | $      | 704,065  |   |
| Less: Post-combination share-based compensation expense (see Note 11)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (10,587  | ) |
| Total purchase price consideration                                                                                                                                                   |   |   | 693,478  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |     |   |
| Fair value of assets acquired and liabilities assumed:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |     |   |
| Cash and cash equivalents                                                                                                                                                            |   |   | 25,724   |   |
| Accounts receivable (1)                                                                                                                                                              |   |   | 39,712   |   |
| Inventories                                                                                                                                                                          |   |   | 13,956   |   |
| Deferred income tax assets, net - current                                                                                                                                            |   |   | 18,126   |   |
| Other current assets                                                                                                                                                                 |   |   | 36,214   |   |
| Notes receivable - current and long-term (2)                                                                                                                                         |   |   | 2,311    |   |
| Property and equipment (3)                                                                                                                                                           |   |   | 633,774  |   |
| Property under capital leases                                                                                                                                                        |   |   | 33,582   |   |
| Intangible assets                                                                                                                                                                    |   |   | 444,150  |   |
| Other assets                                                                                                                                                                         |   |   | 4,203    |   |
| Bank indebtedness - current and long-term                                                                                                                                            |   |   | (271,505 | ) |
| Capital lease obligations - current and long-term                                                                                                                                    |   |   | (38,995  | ) |
| Accounts payable                                                                                                                                                                     |   |   | (54,811  | ) |
| Deferred income tax liabilities, net - long-term                                                                                                                                     |   |   | (182,004 | ) |
| Other liabilities - current and long-term (4)                                                                                                                                        |   |   | (204,402 | ) |
| Net assets acquired                                                                                                                                                                                 |   |   | 500,035  |   |
| Excess purchase price attributed to goodwill acquired                                                                                                                      |   | $      | 193,443  |   |

| (1) The gross amount due under accounts receivable acquired is $40,031, of which $319 was expected to be uncollectible. |
|-------------------------------------------------------------------------------------------------------------------------|

| (2) The gross amount due under notes receivable acquired is $5,947, of which $3,636 was expected to be uncollectible. |
|-----------------------------------------------------------------------------------------------------------------------|

| (3) The estimated fair value of property and equipment acquired consisted of $237,381 of land, $86,740 of leasehold improvements, $204,596 of buildings and improvements, and $105,057 of equipment, furniture and fixtures. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) The estimated fair value of unfavorable lease obligations assumed was $41,458 and is included in other long-term liabilities in our Condensed Consolidated Balance Sheet. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|     |   | Twelve Weeks Ended |    |   | Forty Weeks Ended |   |
|----------|--------|--------------------|---------|--------|-------------------|--------|
|     |   | November 1, 2010   |    |   | November 2, 2009  |   |   | November 1, 2010 |   |   | November 2, 2009 |   |
| Revenues |   | $                  | 284,527 |   |              | $      | 324,580 |   |   | $ | 1,034,604 |   |   | $ | 1,108,409 |   |
| Net loss |   |               | (227    | )      |              |   | (2,405 | ) |   |   | (3,021 | ) |   |   | (1,049 | ) |

----

----

|                       |   | Successor                    |       |   | Predecessor           |   |
|----------------------------|--------|------------------------------|------------|--------|-----------------------|--------|
|                       |   | November 1, 2010             |       |   | January 31, 2010 |   |
|                       |   | Weighted Average Life(Years) |       |   | Gross CarryingAmount  |   |   | AccumulatedAmortization |   |   | Net CarryingAmount |   |   | Gross CarryingAmount |   |   | AccumulatedAmortization |   |   | Net CarryingAmount |   |
| Trademarks/Tradenames      |   |                         | Indefinite |   |                  | $      | 278,000 |   |   | $ | — |   |   | $ | 278,000 |   |   | $ | 3,166 |   |   | $ | (1,251 | ) |   | $ | 1,915 |   |
| Favorable lease agreements |   |                         | 10         |   |                  |   | 69,150 |   |   |   | (3,097 | ) |   |   | 66,053 |   |   |   | 1,076 |   |   |   | (756 | ) |   |   | 320 |   |
| Franchise agreements       |   |                         | 20         |   |                  |   | 97,000 |   |   |   | (1,492 | ) |   |   | 95,508 |   |   |   | 90 |   |   |   | (8 | ) |   |   | 82 |   |
|                       |   |                         |       |   |                  | $      | 444,150 |   |   | $ | (4,589 | ) |   | $ | 439,561 |   |   | $ | 4,332 |   |   | $ | (2,015 | ) |   | $ | 2,317 |   |

| November 2, 2010 through January 31, 2011 |   | $      | 3,440  |   |
|-------------------------------------------|--------|--------|--------|--------|
| Fiscal 2012                               |   |   | 14,809 |   |
| Fiscal 2013                               |   |   | 14,429 |   |
| Fiscal 2014                               |   |   | 12,961 |   |
| Fiscal 2015                               |   |   | 11,195 |   |
| Fiscal 2016                               |   |   | 10,089 |   |

----

----

|                                                      |   | Successor                         |    |   | Predecessor                        |   |
|-----------------------------------------------------------|--------|-----------------------------------|---------|--------|------------------------------------|--------|
|                                                      |   | TwelveWeeks EndedNovember 1, 2010 |    |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Senior secured credit facility                            |   | $                                 | 144     |   |                               | $      | 191 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Senior secured second lien notes                          |   |                              | 15,584  |   |                               |   | 20,779 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Predecessor Facility                                      |   |                              | — |   |                               |   | — |   |   |   | 2,338 |   |   |   | 1,124 |   |   |   | 4,137 |   |
| Interest rate swap agreements                             |   |                              | — |   |                               |   | — |   |   |   | 3,113 |   |   |   | 3,631 |   |   |   | 4,948 |   |
| Capital lease obligations                                 |   |                              | 924     |   |                               |   | 1,234 |   |   |   | 2,318 |   |   |   | 1,281 |   |   |   | 4,069 |   |
| Amortization of debt issuance costs and discount on notes |   |                              | 837     |   |                               |   | 1,115 |   |   |   | 488 |   |   |   | 234 |   |   |   | 782 |   |
| Letter of credit fees and other                           |   |                              | 196     |   |                               |   | 222 |   |   |   | 360 |   |   |   | 160 |   |   |   | 898 |   |
|                                                      |   | $                                 | 17,685  |   |                               | $      | 23,541 |   |   | $ | 8,617 |   |   | $ | 6,430 |   |   | $ | 14,834 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Successor        |    |   | Predecessor         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | November 1, 2010 |    |   | January 31, 2010    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | CarryingValue    |    |   | EstimatedFair Value |   |   | CarryingValue |   |   | EstimatedFair Value |   |
| Financial assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |    |   |                |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                            |   | $                | 49,494  |   |                | $      | 49,494 |   |   | $ | 18,246 |   |   | $ | 18,246 |   |
| Notes receivable                                                                                     |   |             | 4,802   |   |                |   | 4,658 |   |   |   | 2,183 |   |   |   | 2,534 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt and bank indebtedness, including current portion                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 589,794 |   |                |   | 643,009 |   |   |   | 278,464 |   |   |   | 250,798 |   |

|                              |   |   |   |   | Successor        |   |    | Predecessor      |   |
|-----------------------------------|--------|--------|--------|--------|------------------|--------|---------|------------------|--------|
|                              |   | Level  |   |   | November 1, 2010 |   |    | January 31, 2010 |   |
| Interest rate swap agreements (1) |   |   | 2      |   |             | $      | — |             |   | $ | 15,482 |   |

----

----

|                                                                                                                          |   | Successor                         |    |   | Predecessor                        |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|------------------------------------|--------|
|                                                                                                                          |   | TwelveWeeks EndedNovember 1, 2010 |    |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Share-based compensation expense related to restricted stock awards that contain market or performance conditions             |   | $                                 | — |   |                               | $      | — |   |   | $ | 717 |   |   | $ | 322 |   |   | $ | 1,301 |   |
| Share-based compensation expense related to the acceleration of vesting of stock options and awards in connection with Merger |   |                              | — |   |                               |   | 10,587 |   |   |   | 1,521 |   |   |   | — |   |   |   | — |   |
| Share-based compensation expense related to Units that contain performance conditions                                         |   |                              | 767     |   |                               |   | 767 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| All other share-based compensation expense                                                                                    |   |                              | 524     |   |                               |   | 698 |   |   |   | 2,472 |   |   |   | 1,678 |   |   |   | 4,941 |   |
| Total share-based compensation expense                                                                                        |   | $                                 | 1,291   |   |                               | $      | 12,052 |   |   | $ | 4,710 |   |   | $ | 2,000 |   |   | $ | 6,242 |   |
| Associated tax benefits                                                                                                       |   | $                                 | — |   |                               | $      | — |   |   | $ | 1,804 |   |   | $ | 656 |   |   | $ | 2,121 |   |

----

----

|                                                                           |   | Successor                              |    |   | Predecessor                             |   |
|--------------------------------------------------------------------------------|--------|----------------------------------------|---------|--------|-----------------------------------------|--------|
|                                                                           |   | TwelveWeeks EndedNovember 1, 2010 |    |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Estimated liability for new restaurant closures                                |   | $                                      | 99      |   |                                    | $      | 99 |   |   | $ | 363 |   |   | $ | — |   |   | $ | 525 |   |
| Adjustments to estimated liability for closed restaurants                      |   |                                   | 371     |   |                                    |   | 405 |   |   |   | 60 |   |   |   | 323 |   |   |   | 5 |   |
| Impairment of assets to be disposed of                                         |   |                                   | 75      |   |                                    |   | 75 |   |   |   | 156 |   |   |   | — |   |   |   | — |   |
| Impairment of assets to be held and used                                       |   |                                   | — |   |                                    |   | — |   |   |   | 161 |   |   |   | 97 |   |   |   | 2,143 |   |
| Loss (gain) on sales of restaurants and surplus properties, net                |   |                                   | 106     |   |                                    |   | 168 |   |   |   | (348 | ) |   |   | 25 |   |   |   | 47 |   |
| Amortization of discount related to estimated liability for closed restaurants |   |                                   | 119     |   |                                    |   | 160 |   |   |   | 198 |   |   |   | 75 |   |   |   | 302 |   |
|                                                                           |   | $                                      | 770     |   |                                    | $      | 907 |   |   | $ | 590 |   |   | $ | 520 |   |   | $ | 3,022 |   |

|                           |   | Successor                         |    |   | Predecessor                        |   |
|--------------------------------|--------|-----------------------------------|---------|--------|------------------------------------|--------|
|                           |   | TwelveWeeks EndedNovember 1, 2010 |    |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Property and equipment:        |   |                              |    |   |                               |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.               |   | $                                 | — |   |                               | $      | — |   |   | $ | 49 |   |   | $ | 97 |   |   | $ | 1,976 |   |
| Hardee’s                 |   |                              | 75      |   |                               |   | 75 |   |   |   | 254 |   |   |   | — |   |   |   | 46 |   |
|                           |   |                              | 75      |   |                               |   | 75 |   |   |   | 303 |   |   |   | 97 |   |   |   | 2,022 |   |
| Property under capital leases: |   |                              |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.               |   |                              | — |   |                               |   | — |   |   |   | 14 |   |   |   | — |   |   |   | 40 |   |
| Hardee’s                 |   |                              | — |   |                               |   | — |   |   |   | — |   |   |   | — |   |   |   | 81 |   |
|                           |   |                              | — |   |                               |   | — |   |   |   | 14 |   |   |   | — |   |   |   | 121 |   |
| Total:                         |   |                              |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.               |   |                              | — |   |                               |   | — |   |   |   | 63 |   |   |   | 97 |   |   |   | 2,016 |   |
| Hardee’s                 |   |                              | 75      |   |                               |   | 75 |   |   |   | 254 |   |   |   | — |   |   |   | 127 |   |
|                           |   | $                                 | 75      |   |                               | $      | 75 |   |   | $ | 317 |   |   | $ | 97 |   |   | $ | 2,143 |   |

----

|                           |   | Successor                         |   |   | Predecessor                        |   |
|--------------------------------|--------|-----------------------------------|--------|--------|------------------------------------|--------|
|                           |   | TwelveWeeks EndedNovember 1, 2010 |   |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Federal and state income taxes |   | $                                 | (3,247 | )      |                               | $      | (9,099 | ) |   | $ | 7,173 |   |   | $ | 4,118 |   |   | $ | 21,696 |   |
| Foreign income taxes           |   |                              | 392    |   |                               |   | 473 |   |   |   | 599 |   |   |   | 261 |   |   |   | 764 |   |
| Income tax (benefit) expense   |   | $                                 | (2,855 | )      |                               | $      | (8,626 | ) |   | $ | 7,772 |   |   | $ | 4,379 |   |   | $ | 22,460 |   |

----

----

|                                                      |   | Successor                         |      |   | Predecessor                             |   |
|-----------------------------------------------------------|--------|-----------------------------------|-----------|--------|-----------------------------------------|--------|
|                                                      |   | TwelveWeeks EndedNovember 1, 2010 |      |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Revenue:                                                  |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.                                          |   | $                                 | 144,466   |   |                                    | $      | 193,960 |   |   | $ | 383,234 |   |   | $ | 193,748 |   |   | $ | 662,782 |   |
| Hardee’s                                            |   |                              | 139,891   |   |                                    |   | 187,283 |   |   |   | 268,523 |   |   |   | 130,231 |   |   |   | 443,472 |   |
| Other                                                     |   |                              | 170       |   |                                    |   | 224 |   |   |   | 362 |   |   |   | 238 |   |   |   | 734 |   |
| Total                                                     |   | $                                 | 284,527   |   |                                    | $      | 381,467 |   |   | $ | 652,119 |   |   | $ | 324,217 |   |   | $ | 1,106,988 |   |
|                                                      |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment income:                                           |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.                                          |   | $                                 | 18,118    |   |                                    | $      | 25,351 |   |   | $ | 43,666 |   |   | $ | 24,877 |   |   | $ | 93,086 |   |
| Hardee’s                                            |   |                              | 26,454    |   |                                    |   | 35,565 |   |   |   | 48,254 |   |   |   | 22,718 |   |   |   | 80,615 |   |
| Other                                                     |   |                              | 94        |   |                                    |   | 124 |   |   |   | 208 |   |   |   | 164 |   |   |   | 487 |   |
| Total                                                     |   |                              | 44,666    |   |                                    |   | 61,040 |   |   |   | 92,128 |   |   |   | 47,759 |   |   |   | 174,188 |   |
| Less: General and administrative expense                  |   |                              | (29,977   | )      |                                    |   | (49,641 | ) |   |   | (58,806 | ) |   |   | (30,977 | ) |   |   | (103,061 | ) |
| Less: Facility action charges, net                        |   |                              | (770      | )      |                                    |   | (907 | ) |   |   | (590 | ) |   |   | (520 | ) |   |   | (3,022 | ) |
| Less: Other operating expenses, net                       |   |                              | (167      | )      |                                    |   | (19,828 | ) |   |   | (10,249 | ) |   |   | — |   |   |   | — |   |
| Operating income (loss)                                   |   |                              | 13,752    |   |                                    |   | (9,336 | ) |   |   | 22,483 |   |   |   | 16,262 |   |   |   | 68,105 |   |
| Interest expense                                          |   |                              | (17,685   | )      |                                    |   | (23,541 | ) |   |   | (8,617 | ) |   |   | (6,430 | ) |   |   | (14,834 | ) |
| Other income (expense), net                               |   |                              | 748       |   |                                    |   | 896 |   |   |   | (13,609 | ) |   |   | 704 |   |   |   | 1,991 |   |
| (Loss) income before income taxes                         |   | $                                 | (3,185    | )      |                                    | $      | (31,981 | ) |   | $ | 257 |   |   | $ | 10,536 |   |   | $ | 55,262 |   |
|                                                      |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization:                            |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization included in segment income: |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.                                          |   | $                                 | 8,570     |   |                                    | $      | 11,429 |   |   | $ | 15,586 |   |   | $ | 7,651 |   |   | $ | 25,206 |   |
| Hardee’s                                            |   |                              | 8,411     |   |                                    |   | 11,177 |   |   |   | 16,214 |   |   |   | 7,712 |   |   |   | 25,373 |   |
| Other                                                     |   |                              | —   |   |                                    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other depreciation and amortization (1)                   |   |                              | 836       |   |                                    |   | 1,115 |   |   |   | 1,903 |   |   |   | 1,142 |   |   |   | 3,738 |   |
| Total depreciation and amortization                       |   | $                                 | 17,817    |   |                                    | $      | 23,721 |   |   | $ | 33,703 |   |   | $ | 16,505 |   |   | $ | 54,317 |   |
|                                                      |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | Successor                         |      |   |                                    |   |   |   | Predecessor |   |   |   |   |   |   |   |   |   |
|                                                      |   | November 1, 2010             |      |   |                                    |   |   |   | January 31, 2010 |   |   |   |   |   |   |   |   |   |
| Total assets:                                             |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.                                          |   | $                                 | 740,186   |   |                                    |   |   |   |   | $ | 300,329 |   |   |   |   |   |   |   |   |   |
| Hardee’s                                            |   |                              | 655,572   |   |                                    |   |   |   |   |   | 368,889 |   |   |   |   |   |   |   |   |   |
| Other                                                     |   |                              | 75,606    |   |                                    |   |   |   |   |   | 154,325 |   |   |   |   |   |   |   |   |   |
| Total                                                     |   | $                                 | 1,471,364 |   |                                    |   |   |   |   | $ | 823,543 |   |   |   |   |   |   |   |   |   |
| Goodwill (2):                                             |   |                              |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carl’s Jr.                                          |   | $                                 | 167,380   |   |                                    |   |   |   |   | $ | 23,550 |   |   |   |   |   |   |   |   |   |
| Hardee’s                                            |   |                              | 26,063    |   |                                    |   |   |   |   |   | 1,039 |   |   |   |   |   |   |   |   |   |
| Other                                                     |   |                              | —   |   |                                    |   |   |   |   |   | — |   |   |   |   |   |   |   |   |   |
| Total                                                     |   | $                                 | 193,443   |   |                                    |   |   |   |   | $ | 24,589 |   |   |   |   |   |   |   |   |   |

| (1) Represents depreciation and amortization excluded from the computation of segment income. |
|-----------------------------------------------------------------------------------------------|

| (2) As of November 1, 2010, the allocation of goodwill to our Carl’s Jr. and Hardee’s operating segments is preliminary and could change materially in future periods (see Note 2). |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                        |   | Successor                          |    |   | Predecessor                         |   |
|-------------------------------------------------------------|--------|------------------------------------|---------|--------|-------------------------------------|--------|
|                                                        |   | SixteenWeeks EndedNovember 1, 2010 |    |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Cash paid for:                                              |   |                               |    |   |                                |   |   |   |   |
| Interest, net of amounts capitalized (1)               |   | $                                  | 16,785  |   |                                | $      | 8,299 |   |   | $ | 15,070 |   |
| Income taxes, net of refunds received                       |   |                               | 1,408   |   |                                |   | 530 |   |   |   | 7,611 |   |
| Non-cash investing and financing activities:                |   |                               |    |   |                                |   |   |   |   |   |   |   |
| Proceeds receivable from sale of Distribution Center assets |   |                               | — |   |                                |   | 1,992 |   |   |   | — |   |
| Dividends declared, not paid                                |   |                               | — |   |                                |   | — |   |   |   | 3,311 |   |
| Capital lease obligations incurred to acquire assets        |   |                               | 26      |   |                                |   | 4,179 |   |   |   | 15,235 |   |
| Accrued property and equipment purchases at quarter-end     |   |                               | 3,161   |   |                                |   | 4,593 |   |   |   | 5,149 |   |

----

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

----

|                     |   | Company-operated |   |   | Franchised |   |   | Licensed |   |   | Total   |   |
|--------------------------|--------|------------------|--------|--------|------------|--------|--------|----------|--------|--------|---------|--------|
| Open at November 2, 2009 |   |             | 898    |   |       |   | 1,911  |     |   |   | 338     |   |   |   | 3,147 |   |
| New                      |   |             | 8      |   |       |   | 31     |     |   |   | 27      |   |   |   | 66 |   |
| Closed                   |   |             | (14    | )      |       |   | (34    | )        |   |   | (12     | )      |   |   | (60 | ) |
| Divested                 |   |             | (1     | )      |       |   | (1     | )        |   |   | — |   |   |   | (2 | ) |
| Acquired                 |   |             | 1      |   |       |   | 1      |     |   |   | — |   |   |   | 2 |   |
| Open at November 1, 2010 |   |             | 892    |   |       |   | 1,908  |     |   |   | 353     |   |   |   | 3,153 |   |

----

| Quarter:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Successor                         |     |   | Predecessor                       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | TwelveWeeks EndedNovember 1, 2010 |     |   | TwelveWeeks EndedNovember 2, 2009 |   |
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              |     |   |                              |   |
| Company-operated restaurants                                                                                              |   | $                                 | 250,097  |   |                              | $      | 246,696 |   |
| Franchised and licensed restaurants and other                                                                             |   |                              | 34,430   |   |                              |   | 77,521 |   |
| Total revenue                                                                                                                            |   |                              | 284,527  |   |                              |   | 324,217 |   |
| Operating costs and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |     |   |                              |   |   |   |
| Restaurant operating costs                                                                                                |   |                              | 208,038  |   |                              |   | 201,925 |   |
| Franchised and licensed restaurants and other                                                                             |   |                              | 16,943   |   |                              |   | 58,854 |   |
| Advertising                                                                                                               |   |                              | 14,880   |   |                              |   | 15,679 |   |
| General and administrative                                                                                                |   |                              | 29,977   |   |                              |   | 30,977 |   |
| Facility action charges, net                                                                                              |   |                              | 770      |   |                              |   | 520 |   |
| Other operating expenses, net                                                                                             |   |                              | 167      |   |                              |   | — |   |
| Total operating costs and expenses                                                                                                       |   |                              | 270,775  |   |                              |   | 307,955 |   |
| Operating income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 13,752   |   |                              |   | 16,262 |   |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | (17,685  | )      |                              |   | (6,430 | ) |
| Other income, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              | 748      |   |                              |   | 704 |   |
| (Loss) income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              | (3,185   | )      |                              |   | 10,536 |   |
| Income tax (benefit) expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | (2,855   | )      |                              |   | 4,379 |   |
| Net (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                 | (330     | )      |                              | $      | 6,157 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              |     |   |                              |   |   |   |
| Company-operated restaurant-level adjusted EBITDA (1):                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                              |     |   |                              |   |   |   |
| Company-operated restaurants revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                 | 250,097  |   |                              | $      | 246,696 |   |
| Less: restaurant operating costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | (208,038 | )      |                              |   | (201,925 | ) |
| Add: depreciation and amortization expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              | 15,006   |   |                              |   | 14,602 |   |
| Less: advertising expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | (14,880  | )      |                              |   | (15,679 | ) |
| Company-operated restaurant-level adjusted EBITDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                 | 42,185   |   |                              | $      | 43,694 |   |
| Company-operated restaurant-level adjusted EBITDA margin                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | 16.9     | %      |                              |   | 17.7 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              |     |   |                              |   |   |   |
| Franchise restaurant adjusted EBITDA (1):                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              |     |   |                              |   |   |   |
| Franchised and licensed restaurants and other revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                 | 34,430   |   |                              | $      | 77,521 |   |
| Less: franchised and licensed restaurants and other expense                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                              | (16,943  | )      |                              |   | (58,854 | ) |
| Add: depreciation and amortization expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              | 1,975    |   |                              |   | 761 |   |
| Franchise restaurant adjusted EBITDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                 | 19,462   |   |                              | $      | 19,428 |   |

| (1) | Refer to definitions of company-operated restaurant-level non-GAAP measures and franchise non-GAAP measures within subheading “Presentation of Non-GAAP Measures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Year To Date:                                               |   | Successor                          |     |   | Predecessor                         |   |     | Successor/Predecessor            |   |   | Predecessor                      |   |
|-------------------------------------------------------------|--------|------------------------------------|----------|--------|-------------------------------------|--------|----------|----------------------------------|--------|--------|----------------------------------|--------|
|                                                        |   | SixteenWeeks EndedNovember 1, 2010 |     |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |     | FortyWeeks EndedNovember 1, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Revenue:                                                    |   |                               |     |   |                                |   |     |                             |   |   |                             |   |
| Company-operated restaurants                                |   | $                                  | 336,048  |   |                                | $      | 500,531  |                             |   | $      | 836,579                          |   |   | $ | 847,654 |   |
| Franchised and licensed restaurants and other               |   |                               | 45,419   |   |                                |   | 151,588  |                             |   |   | 197,007                          |   |   |   | 259,334 |   |
| Total revenue                                               |   |                               | 381,467  |   |                                |   | 652,119  |                             |   |   | 1,033,586                        |   |   |   | 1,106,988 |   |
| Operating costs and expenses:                               |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Restaurant operating costs                                  |   |                               | 278,521  |   |                                |   | 415,255  |                             |   |   | 693,776                          |   |   |   | 684,669 |   |
| Franchised and licensed restaurants and other               |   |                               | 22,178   |   |                                |   | 115,089  |                             |   |   | 137,267                          |   |   |   | 196,680 |   |
| Advertising                                                 |   |                               | 19,728   |   |                                |   | 29,647   |                             |   |   | 49,375                           |   |   |   | 51,451 |   |
| General and administrative                                  |   |                               | 49,641   |   |                                |   | 58,806   |                             |   |   | 108,447                          |   |   |   | 103,061 |   |
| Facility action charges, net                                |   |                               | 907      |   |                                |   | 590      |                             |   |   | 1,497                            |   |   |   | 3,022 |   |
| Other operating expenses, net                               |   |                               | 19,828   |   |                                |   | 10,249   |                             |   |   | 30,077                           |   |   |   | — |   |
| Total operating costs and expenses                          |   |                               | 390,803  |   |                                |   | 629,636  |                             |   |   | 1,020,439                        |   |   |   | 1,038,883 |   |
| Operating (loss) income                                     |   |                               | (9,336   | )      |                                |   | 22,483   |                             |   |   | 13,147                           |   |   |   | 68,105 |   |
| Interest expense                                            |   |                               | (23,541  | )      |                                |   | (8,617   | )                                |   |   | (32,158                          | )      |   |   | (14,834 | ) |
| Other income (expense), net                                 |   |                               | 896      |   |                                |   | (13,609  | )                                |   |   | (12,713                          | )      |   |   | 1,991 |   |
| (Loss) income before income taxes                           |   |                               | (31,981  | )      |                                |   | 257      |                             |   |   | (31,724                          | )      |   |   | 55,262 |   |
| Income tax (benefit) expense                                |   |                               | (8,626   | )      |                                |   | 7,772    |                             |   |   | (854                             | )      |   |   | 22,460 |   |
| Net (loss) income                                           |   | $                                  | (23,355  | )      |                                | $      | (7,515   | )                                |   | $      | (30,870                          | )      |   | $ | 32,802 |   |
|                                                        |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated restaurant-level adjusted EBITDA (1):      |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated restaurants revenue                        |   | $                                  | 336,048  |   |                                | $      | 500,531  |                             |   | $      | 836,579                          |   |   | $ | 847,654 |   |
| Less: restaurant operating costs                            |   |                               | (278,521 | )      |                                |   | (415,255 | )                                |   |   | (693,776                         | )      |   |   | (684,669 | ) |
| Add: depreciation and amortization expense                  |   |                               | 19,972   |   |                                |   | 30,412   |                             |   |   | 50,384                           |   |   |   | 47,985 |   |
| Less: advertising expense                                   |   |                               | (19,728  | )      |                                |   | (29,647  | )                                |   |   | (49,375                          | )      |   |   | (51,451 | ) |
| Company-operated restaurant-level adjusted EBITDA           |   | $                                  | 57,771   |   |                                | $      | 86,041   |                             |   | $      | 143,812                          |   |   | $ | 159,519 |   |
| Company-operated restaurant-level adjusted EBITDA margin    |   |                               | 17.2     | %      |                                |   | 17.2     | %                                |   |   | 17.2                             | %      |   |   | 18.8 | % |
|                                                        |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Franchise restaurant adjusted EBITDA (1):                   |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Franchised and licensed restaurants and other revenue       |   | $                                  | 45,419   |   |                                | $      | 151,588  |                             |   | $      | 197,007                          |   |   | $ | 259,334 |   |
| Less: franchised and licensed restaurants and other expense |   |                               | (22,178  | )      |                                |   | (115,089 | )                                |   |   | (137,267                         | )      |   |   | (196,680 | ) |
| Add: depreciation and amortization expense                  |   |                               | 2,634    |   |                                |   | 1,388    |                             |   |   | 4,022                            |   |   |   | 2,594 |   |
| Franchise restaurant adjusted EBITDA                        |   | $                                  | 25,875   |   |                                | $      | 37,887   |                             |   | $      | 63,762                           |   |   | $ | 65,248 |   |

| (1) | Refer to definitions of company-operated restaurant-level non-GAAP measures and franchise non-GAAP measures within subheading “Presentation of Non-GAAP Measures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Carl’s Jr. Quarter:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Successor                         |     |   | Predecessor                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | TwelveWeeks EndedNovember 1, 2010 |     |   | TwelveWeeks EndedNovember 2, 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              |     |   |                              |   |
| Company-operated restaurants revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                 | 131,367  |   |                              | $      | 136,682 |   |
| Franchised and licensed restaurants and other revenue                                                                                             |   |                              | 13,099   |   |                              |   | 57,066 |   |
| Total revenue                                                                                                                                                                   |   |                              | 144,466  |   |                              |   | 193,748 |   |
| Restaurant operating costs:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              |     |   |                              |   |   |   |
| Food and packaging                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 38,397   |   |                              |   | 38,122 |   |
| Payroll and other employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 37,062   |   |                              |   | 37,396 |   |
| Occupancy and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 35,543   |   |                              |   | 34,653 |   |
| Total restaurant operating costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              | 111,002  |   |                              |   | 110,171 |   |
| Franchised and licensed restaurants and other expenses                                                                                            |   |                              | 7,453    |   |                              |   | 49,593 |   |
| Advertising expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 7,893    |   |                              |   | 9,107 |   |
| General and administrative expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 13,749   |   |                              |   | 14,052 |   |
| Facility action charges, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | 118      |   |                              |   | 313 |   |
| Operating income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                 | 4,251    |   |                              | $      | 10,512 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              |     |   |                              |   |   |   |
| Company-operated average unit volume (trailing-13 periods)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                 | 1,375    |   |                              | $      | 1,468 |   |
| Franchise-operated average unit volume (trailing-13 periods)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                 | 1,096    |   |                              | $      | 1,135 |   |
| Company-operated same-store sales decrease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | (5.0     | )%     |                              |   | (5.2 | )% |
| Franchise-operated same-store sales decrease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | (4.3     | )%     |                              |   | (4.8 | )% |
| Company-operated same-store transaction decrease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              | (3.0     | )%     |                              |   | (2.7 | )% |
| Company-operated average check (actual $)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                 | 6.73     |   |                              | $      | 6.85 |   |
| Restaurant operating costs as a percentage of company-operated restaurants revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |     |   |                              |   |   |   |
| Food and packaging                                                                                                                                               |   |                              | 29.2     | %      |                              |   | 27.9 | % |
| Payroll and other employee benefits                                                                                                                              |   |                              | 28.2     | %      |                              |   | 27.4 | % |
| Occupancy and other                                                                                                                                              |   |                              | 27.1     | %      |                              |   | 25.4 | % |
| Total restaurant operating costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              | 84.5     | %      |                              |   | 80.6 | % |
| Advertising expense as a percentage of company-operated restaurants revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | 6.0      | %      |                              |   | 6.7 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              |     |   |                              |   |   |   |
| Company-operated restaurant-level adjusted EBITDA (1):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              |     |   |                              |   |   |   |
| Company-operated restaurants revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                 | 131,367  |   |                              | $      | 136,682 |   |
| Less: restaurant operating costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              | (111,002 | )      |                              |   | (110,171 | ) |
| Add: depreciation and amortization expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 7,664    |   |                              |   | 7,216 |   |
| Less: advertising expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                              | (7,893   | )      |                              |   | (9,107 | ) |
| Company-operated restaurant-level adjusted EBITDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                 | 20,136   |   |                              | $      | 24,620 |   |
| Company-operated restaurant-level adjusted EBITDA margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | 15.3     | %      |                              |   | 18.0 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              |     |   |                              |   |   |   |
| Franchise restaurant adjusted EBITDA (1):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                              |     |   |                              |   |   |   |
| Franchised and licensed restaurants and other revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                 | 13,099   |   |                              | $      | 57,066 |   |
| Less: franchised and licensed restaurants and other expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | (7,453   | )      |                              |   | (49,593 | ) |
| Add: depreciation and amortization expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 906      |   |                              |   | 435 |   |
| Franchise restaurant adjusted EBITDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                 | 6,552    |   |                              | $      | 7,908 |   |

| (1) | Refer to definitions of company-operated restaurant-level non-GAAP measures and franchise non-GAAP measures within subheading “Presentation of Non-GAAP Measures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Carl’s Jr. Year To Date:                                                      |   | Successor                          |     |   | Predecessor                         |   |     | Successor/Predecessor            |   |   | Predecessor                      |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------|----------|--------|-------------------------------------|--------|----------|----------------------------------|--------|--------|----------------------------------|--------|
|                                                                                |   | SixteenWeeks EndedNovember 1, 2010 |     |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |     | FortyWeeks EndedNovember 1, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
|                                                                                |   |                               |     |   |                                |   |     |                             |   |   |                             |   |
| Company-operated restaurants revenue                                                |   | $                                  | 176,512  |   |                                | $      | 271,379  |                             |   | $      | 447,891                          |   |   | $ | 472,301 |   |
| Franchised and licensed restaurants and other revenue                               |   |                               | 17,448   |   |                                |   | 111,855  |                             |   |   | 129,303                          |   |   |   | 190,481 |   |
| Total revenue                                                                       |   |                               | 193,960  |   |                                |   | 383,234  |                             |   |   | 577,194                          |   |   |   | 662,782 |   |
| Restaurant operating costs:                                                         |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Food and packaging                                                                  |   |                               | 51,427   |   |                                |   | 80,105   |                             |   |   | 131,532                          |   |   |   | 132,894 |   |
| Payroll and other employee benefits                                                 |   |                               | 49,486   |   |                                |   | 76,624   |                             |   |   | 126,110                          |   |   |   | 127,719 |   |
| Occupancy and other                                                                 |   |                               | 47,094   |   |                                |   | 67,654   |                             |   |   | 114,748                          |   |   |   | 113,511 |   |
| Total restaurant operating costs                                                    |   |                               | 148,007  |   |                                |   | 224,383  |                             |   |   | 372,390                          |   |   |   | 374,124 |   |
| Franchised and licensed restaurants and other expenses                              |   |                               | 9,960    |   |                                |   | 98,565   |                             |   |   | 108,525                          |   |   |   | 166,146 |   |
| Advertising expense                                                                 |   |                               | 10,642   |   |                                |   | 16,620   |                             |   |   | 27,262                           |   |   |   | 29,426 |   |
| General and administrative expense                                                  |   |                               | 22,785   |   |                                |   | 26,909   |                             |   |   | 49,694                           |   |   |   | 46,505 |   |
| Facility action charges, net                                                        |   |                               | 158      |   |                                |   | 168      |                             |   |   | 326                              |   |   |   | 2,062 |   |
| Gain on sale of Distribution Center assets                                          |   |                               | —  |   |                                |   | (3,442   | )                                |   |   | (3,442                           | )      |   |   | — |   |
| Operating income                                                                    |   | $                                  | 2,408    |   |                                | $      | 20,031   |                             |   | $      | 22,439                           |   |   | $ | 44,519 |   |
|                                                                                |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated same-store sales decrease                                          |   |                               |     |   |                                |   |     |                             |   |   | (6.2                             | )%     |   |   | (5.5 | )% |
| Franchise-operated same-store sales decrease                                        |   |                               |     |   |                                |   |     |                             |   |   | (4.2                             | )%     |   |   | (5.7 | )% |
| Company-operated same-store transaction decrease                                    |   |                               |     |   |                                |   |     |                             |   |   | (3.9                             | )%     |   |   | (4.1 | )% |
| Company-operated average check (actual $)                                           |   |                               |     |   |                                |   |     |                             |   | $      | 6.80                             |   |   | $ | 6.94 |   |
| Restaurant operating costs as a percentage of company-operated restaurants revenue: |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Food and packaging                                                                  |   |                               |     |   |                                |   |     |                             |   |   | 29.4                             | %      |   |   | 28.1 | % |
| Payroll and other employee benefits                                                 |   |                               |     |   |                                |   |     |                             |   |   | 28.2                             | %      |   |   | 27.0 | % |
| Occupancy and other                                                                 |   |                               |     |   |                                |   |     |                             |   |   | 25.6                             | %      |   |   | 24.0 | % |
| Total restaurant operating costs                                                    |   |                               |     |   |                                |   |     |                             |   |   | 83.1                             | %      |   |   | 79.2 | % |
| Advertising expense as a percentage of company-operated restaurants revenue         |   |                               |     |   |                                |   |     |                             |   |   | 6.1                              | %      |   |   | 6.2 | % |
|                                                                                |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated restaurant-level adjusted EBITDA (1):                              |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated restaurants revenue                                                |   | $                                  | 176,512  |   |                                | $      | 271,379  |                             |   | $      | 447,891                          |   |   | $ | 472,301 |   |
| Less: restaurant operating costs                                                    |   |                               | (148,007 | )      |                                |   | (224,383 | )                                |   |   | (372,390                         | )      |   |   | (374,124 | ) |
| Add: depreciation and amortization expense                                          |   |                               | 10,219   |   |                                |   | 14,834   |                             |   |   | 25,053                           |   |   |   | 23,731 |   |
| Less: advertising expense                                                           |   |                               | (10,642  | )      |                                |   | (16,620  | )                                |   |   | (27,262                          | )      |   |   | (29,426 | ) |
| Company-operated restaurant-level adjusted EBITDA                                   |   | $                                  | 28,082   |   |                                | $      | 45,210   |                             |   | $      | 73,292                           |   |   | $ | 92,482 |   |
| Company-operated restaurant-level adjusted EBITDA margin                            |   |                               | 15.9     | %      |                                |   | 16.7     | %                                |   |   | 16.4                             | %      |   |   | 19.6 | % |
|                                                                                |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Franchise restaurant adjusted EBITDA (1):                                           |   |                               |     |   |                                |   |     |                             |   |   |                             |   |   |   |   |   |
| Franchised and licensed restaurants and other revenue                               |   | $                                  | 17,448   |   |                                | $      | 111,855  |                             |   | $      | 129,303                          |   |   | $ | 190,481 |   |
| Less: franchised and licensed restaurants and other expense                         |   |                               | (9,960   | )      |                                |   | (98,565  | )                                |   |   | (108,525                         | )      |   |   | (166,146 | ) |
| Add: depreciation and amortization expense                                          |   |                               | 1,210    |   |                                |   | 752      |                             |   |   | 1,962                            |   |   |   | 1,475 |   |
| Franchise restaurant adjusted EBITDA                                                |   | $                                  | 8,698    |   |                                | $      | 14,042   |                             |   | $      | 22,740                           |   |   | $ | 25,810 |   |

| (1) | Refer to definitions of company-operated restaurant-level non-GAAP measures and franchise non-GAAP measures within subheading “Presentation of Non-GAAP Measures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                     |   | Company-operated |    |   | Franchised |   |    | Licensed |   |   | Total   |   |
|--------------------------|--------|------------------|---------|--------|------------|--------|---------|----------|--------|--------|---------|--------|
| Open at November 2, 2009 |   |             | 421     |   |       |   | 667     |     |   |   | 133     |   |   |   | 1,221 |   |
| New                      |   |             | 7       |   |       |   | 23      |     |   |   | 17      |   |   |   | 47 |   |
| Closed                   |   |             | (5      | )      |       |   | (14     | )        |   |   | (4      | )      |   |   | (23 | ) |
| Divested                 |   |             | — |   |       |   | (1      | )        |   |   | — |   |   |   | (1 | ) |
| Acquired                 |   |             | 1       |   |       |   | — |     |   |   | — |   |   |   | 1 |   |
| Open at November 1, 2010 |   |             | 424     |   |       |   | 675     |     |   |   | 146     |   |   |   | 1,245 |   |

|                                                                                           |   | Twelve Weeks |    |   | Forty Weeks |   |
|------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-------------|--------|
| Company-operated restaurant-level adjusted EBITDA margin for the period ended November 2, 2009 |   |         | 18.0    | %      |        |   | 19.6 | % |
| Increase in food and packaging costs                                                           |   |         | (1.3    | )      |        |   | (1.2 | ) |
| Payroll and other employee benefits:                                                           |   |         |    |   |        |   |   |   |
| Increase in labor costs, excluding workers’ compensation                                 |   |         | (0.6    | )      |        |   | (0.9 | ) |
| Increase in workers’ compensation expense                                                |   |         | (0.3    | )      |        |   | (0.2 | ) |
| Occupancy and other (excluding depreciation and amortization):                                 |   |         |    |   |        |   |   |   |
| Increase in rent expense                                                                       |   |         | (1.1    | )      |        |   | (0.8 | ) |
| Decrease in repairs and maintenance expense                                                    |   |         | 0.3     |   |        |   | 0.1 |   |
| Increase in utilities expense                                                                  |   |         | (0.2    | )      |        |   | (0.2 | ) |
| Increase in property tax expense                                                               |   |         | (0.2    | )      |        |   | (0.2 | ) |
| Other, net                                                                                     |   |         | — |   |        |   | 0.1 |   |
| Advertising expense                                                                            |   |         | 0.7     |   |        |   | 0.1 |   |
| Company-operated restaurant-level adjusted EBITDA margin for the period ended November 1, 2010 |   |         | 15.3    | %      |        |   | 16.4 | % |

----

| Carl’s Jr. Quarter:                                    |   | Successor                         |    |   | Predecessor                       |   |
|--------------------------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|
|                                                         |   | TwelveWeeks EndedNovember 1, 2010 |    |   | TwelveWeeks EndedNovember 2, 2009 |   |
| Franchised and licensed restaurants and other revenue:       |   |                              |    |   |                              |   |
| Royalties                                                    |   | $                                 | 7,527   |   |                              | $      | 7,616 |   |
| Distribution centers                                         |   |                              | — |   |                              |   | 43,964 |   |
| Rent and other occupancy                                     |   |                              | 5,432   |   |                              |   | 5,151 |   |
| Franchise fees                                               |   |                              | 140     |   |                              |   | 335 |   |
| Total franchised and licensed restaurants and other revenue  |   | $                                 | 13,099  |   |                              | $      | 57,066 |   |
| Franchised and licensed restaurants and other expenses:      |   |                              |    |   |                              |   |   |   |
| Administrative expense (including provision for bad debts)   |   | $                                 | 2,507   |   |                              | $      | 1,878 |   |
| Distribution centers                                         |   |                              | — |   |                              |   | 43,313 |   |
| Rent and other occupancy                                     |   |                              | 4,946   |   |                              |   | 4,402 |   |
| Total franchised and licensed restaurants and other expenses |   | $                                 | 7,453   |   |                              | $      | 49,593 |   |

----

| Carl’s Jr. Year To Date:                               |   | Successor                          |    |   | Predecessor                         |   |    | Successor/Predecessor            |   |   | Predecessor                      |   |
|--------------------------------------------------------------|--------|------------------------------------|---------|--------|-------------------------------------|--------|---------|----------------------------------|--------|--------|----------------------------------|--------|
|                                                         |   | SixteenWeeks EndedNovember 1, 2010 |    |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |    | FortyWeeks EndedNovember 1, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Franchised and licensed restaurants and other revenue:       |   |                               |    |   |                                |   |    |                             |   |   |                             |   |
| Royalties                                                    |   | $                                  | 10,019  |   |                                | $      | 15,068  |                             |   | $      | 25,087                           |   |   | $ | 24,903 |   |
| Distribution centers                                         |   |                               | — |   |                                |   | 86,891  |                             |   |   | 86,891                           |   |   |   | 147,920 |   |
| Rent and other occupancy                                     |   |                               | 7,195   |   |                                |   | 9,421   |                             |   |   | 16,616                           |   |   |   | 16,620 |   |
| Franchise fees                                               |   |                               | 234     |   |                                |   | 475     |                             |   |   | 709                              |   |   |   | 1,038 |   |
| Total franchised and licensed restaurants and other revenue  |   | $                                  | 17,448  |   |                                | $      | 111,855 |                             |   | $      | 129,303                          |   |   | $ | 190,481 |   |
| Franchised and licensed restaurants and other expenses:      |   |                               |    |   |                                |   |    |                             |   |   |                             |   |   |   |   |   |
| Administrative expense (including provision for bad debts)   |   | $                                  | 3,376   |   |                                | $      | 3,722   |                             |   | $      | 7,098                            |   |   | $ | 5,805 |   |
| Distribution centers                                         |   |                               | — |   |                                |   | 86,170  |                             |   |   | 86,170                           |   |   |   | 145,725 |   |
| Rent and other occupancy                                     |   |                               | 6,584   |   |                                |   | 8,673   |                             |   |   | 15,257                           |   |   |   | 14,616 |   |
| Total franchised and licensed restaurants and other expenses |   | $                                  | 9,960   |   |                                | $      | 98,565  |                             |   | $      | 108,525                          |   |   | $ | 166,146 |   |

----

| Hardee’sQuarter:                                                              |   | Successor                         |    |   | Predecessor                 |   |
|-------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|----------------------------------|--------|
|                                                                                |   | TwelveWeeks EndedNovember 1, 2010 |    |   | TwelveWeeks EndedNovember 2,2009 |   |
|                                                                                |   |                              |    |   |                             |   |   |   |
| Company-operated restaurants revenue                                                |   | $                                 | 118,680 |   |                             | $      | 109,957 |   |
| Franchised and licensed restaurants and other revenue                               |   |                              | 21,211  |   |                             |   | 20,274 |   |
| Total revenue                                                                       |   |                              | 139,891 |   |                             |   | 130,231 |   |
| Restaurant operating costs:                                                         |   |                              |    |   |                             |   |   |   |
| Food and packaging                                                                  |   |                              | 35,461  |   |                             |   | 31,521 |   |
| Payroll and other employee benefits                                                 |   |                              | 34,499  |   |                             |   | 33,960 |   |
| Occupancy and other                                                                 |   |                              | 27,000  |   |                             |   | 26,199 |   |
| Total restaurant operating costs                                                    |   |                              | 96,960  |   |                             |   | 91,680 |   |
| Franchised and licensed restaurants and other expenses                              |   |                              | 9,490   |   |                             |   | 9,261 |   |
| Advertising expense                                                                 |   |                              | 6,987   |   |                             |   | 6,572 |   |
| General and administrative expense                                                  |   |                              | 16,229  |   |                             |   | 16,887 |   |
| Facility action charges, net                                                        |   |                              | 651     |   |                             |   | 207 |   |
| Operating income                                                                    |   | $                                 | 9,574   |   |                             | $      | 5,624 |   |
|                                                                                |   |                              |    |   |                             |   |   |   |
| Company-operated average unit volume (trailing-13 periods)                          |   | $                                 | 1,039   |   |                             | $      | 1,004 |   |
| Franchise-operated average unit volume (trailing-13 periods)                        |   | $                                 | 1,002   |   |                             | $      | 981 |   |
| Company-operated same-store sales increase (decrease)                               |   |                              | 8.3     | %      |                             |   | (1.8 | )% |
| Franchise-operated same-store sales increase (decrease)                             |   |                              | 7.4     | %      |                             |   | (1.4 | )% |
| Company-operated same-store transaction increase                                    |   |                              | 3.3     | %      |                             |   | 1.3 | % |
| Company-operated average check (actual $)                                           |   | $                                 | 5.16    |   |                             | $      | 4.94 |   |
| Restaurant operating costs as a percentage of company-operated restaurants revenue: |   |                              |    |   |                             |   |   |   |
| Food and packaging                                                                  |   |                              | 29.9    | %      |                             |   | 28.7 | % |
| Payroll and other employee benefits                                                 |   |                              | 29.1    | %      |                             |   | 30.9 | % |
| Occupancy and other                                                                 |   |                              | 22.8    | %      |                             |   | 23.8 | % |
| Total restaurant operating costs                                                    |   |                              | 81.7    | %      |                             |   | 83.4 | % |
| Advertising expense as a percentage of company-operated restaurants revenue         |   |                              | 5.9     | %      |                             |   | 6.0 | % |
|                                                                                |   |                              |    |   |                             |   |   |   |
| Company-operated restaurant-level adjusted EBITDA (1):                              |   |                              |    |   |                             |   |   |   |
| Company-operated restaurants revenue                                                |   | $                                 | 118,680 |   |                             | $      | 109,957 |   |
| Less: restaurant operating costs                                                    |   |                              | (96,960 | )      |                             |   | (91,680 | ) |
| Add: depreciation and amortization expense                                          |   |                              | 7,342   |   |                             |   | 7,386 |   |
| Less: advertising expense                                                           |   |                              | (6,987  | )      |                             |   | (6,572 | ) |
| Company-operated restaurant-level adjusted EBITDA                                   |   | $                                 | 22,075  |   |                             | $      | 19,091 |   |
| Company-operated restaurant-level adjusted EBITDA margin                            |   |                              | 18.6    | %      |                             |   | 17.4 | % |
|                                                                                |   |                              |    |   |                             |   |   |   |
| Franchise restaurant adjusted EBITDA (1):                                           |   |                              |    |   |                             |   |   |   |
| Franchised and licensed restaurants and other revenue                               |   | $                                 | 21,211  |   |                             | $      | 20,274 |   |
| Less: franchised and licensed restaurants and other expense                         |   |                              | (9,490  | )      |                             |   | (9,261 | ) |
| Add: depreciation and amortization expense                                          |   |                              | 1,069   |   |                             |   | 326 |   |
| Franchise restaurant adjusted EBITDA                                                |   | $                                 | 12,790  |   |                             | $      | 11,339 |   |

| (1) | Refer to definitions of company-operated restaurant-level non-GAAP measures and franchise non-GAAP measures within subheading “Presentation of Non-GAAP Measures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Hardee’sYear To Date:                                                         |   | Successor                          |     |   | Predecessor                               |   |     | Successor/Predecessor            |   |   | Predecessor                      |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------|----------|--------|-------------------------------------------|--------|----------|----------------------------------|--------|--------|----------------------------------|--------|
|                                                                                |   | SixteenWeeks EndedNovember 1, 2010 |     |   | Twenty-Four Weeks Ended July 12,2010 |   |     | FortyWeeks EndedNovember 1, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
|                                                                                |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |
| Company-operated restaurants revenue                                                |   | $                                  | 159,470  |   |                                      | $      | 229,043  |                             |   | $      | 388,513                          |   |   | $ | 375,160 |   |
| Franchised and licensed restaurants and other revenue                               |   |                               | 27,813   |   |                                      |   | 39,480   |                             |   |   | 67,293                           |   |   |   | 68,312 |   |
| Total revenue                                                                       |   |                               | 187,283  |   |                                      |   | 268,523  |                             |   |   | 455,806                          |   |   |   | 443,472 |   |
| Restaurant operating costs:                                                         |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Food and packaging                                                                  |   |                               | 47,733   |   |                                      |   | 68,842   |                             |   |   | 116,575                          |   |   |   | 109,104 |   |
| Payroll and other employee benefits                                                 |   |                               | 46,414   |   |                                      |   | 70,498   |                             |   |   | 116,912                          |   |   |   | 113,324 |   |
| Occupancy and other                                                                 |   |                               | 36,267   |   |                                      |   | 51,378   |                             |   |   | 87,645                           |   |   |   | 87,870 |   |
| Total restaurant operating costs                                                    |   |                               | 130,414  |   |                                      |   | 190,718  |                             |   |   | 321,132                          |   |   |   | 310,298 |   |
| Franchised and licensed restaurants and other expenses                              |   |                               | 12,218   |   |                                      |   | 16,524   |                             |   |   | 28,742                           |   |   |   | 30,534 |   |
| Advertising expense                                                                 |   |                               | 9,086    |   |                                      |   | 13,027   |                             |   |   | 22,113                           |   |   |   | 22,025 |   |
| General and administrative expense                                                  |   |                               | 26,857   |   |                                      |   | 31,827   |                             |   |   | 58,684                           |   |   |   | 56,430 |   |
| Facility action charges, net                                                        |   |                               | 748      |   |                                      |   | 369      |                             |   |   | 1,117                            |   |   |   | 960 |   |
| Operating income                                                                    |   | $                                  | 7,960    |   |                                      | $      | 16,058   |                             |   | $      | 24,018                           |   |   | $ | 23,225 |   |
|                                                                                |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated same-store sales increase (decrease)                               |   |                               |     |   |                                      |   |     |                             |   |   | 4.0                              | %      |   |   | (0.4 | )% |
| Franchise-operated same-store sales increase                                        |   |                               |     |   |                                      |   |     |                             |   |   | 3.1                              | %      |   |   | 0.7 | % |
| Company-operated same-store transaction increase                                    |   |                               |     |   |                                      |   |     |                             |   |   | 1.7                              | %      |   |   | 1.2 | % |
| Company-operated average check (actual $)                                           |   |                               |     |   |                                      |   |     |                             |   | $      | 5.13                             |   |   | $ | 5.04 |   |
| Restaurant operating costs as a percentage of company-operated restaurants revenue: |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Food and packaging                                                                  |   |                               |     |   |                                      |   |     |                             |   |   | 30.0                             | %      |   |   | 29.1 | % |
| Payroll and other employee benefits                                                 |   |                               |     |   |                                      |   |     |                             |   |   | 30.1                             | %      |   |   | 30.2 | % |
| Occupancy and other                                                                 |   |                               |     |   |                                      |   |     |                             |   |   | 22.6                             | %      |   |   | 23.4 | % |
| Total restaurant operating costs                                                    |   |                               |     |   |                                      |   |     |                             |   |   | 82.7                             | %      |   |   | 82.7 | % |
| Advertising expense as a percentage of company-operated restaurants revenue         |   |                               |     |   |                                      |   |     |                             |   |   | 5.7                              | %      |   |   | 5.9 | % |
|                                                                                |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated restaurant-level adjusted EBITDA (1):                              |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Company-operated restaurants revenue                                                |   | $                                  | 159,470  |   |                                      | $      | 229,043  |                             |   | $      | 388,513                          |   |   | $ | 375,160 |   |
| Less: restaurant operating costs                                                    |   |                               | (130,414 | )      |                                      |   | (190,718 | )                                |   |   | (321,132                         | )      |   |   | (310,298 | ) |
| Add: depreciation and amortization expense                                          |   |                               | 9,753    |   |                                      |   | 15,578   |                             |   |   | 25,331                           |   |   |   | 24,254 |   |
| Less: advertising expense                                                           |   |                               | (9,086   | )      |                                      |   | (13,027  | )                                |   |   | (22,113                          | )      |   |   | (22,025 | ) |
| Company-operated restaurant-level adjusted EBITDA                                   |   | $                                  | 29,723   |   |                                      | $      | 40,876   |                             |   | $      | 70,599                           |   |   | $ | 67,091 |   |
| Company-operated restaurant-level adjusted EBITDA margin                            |   |                               | 18.6     | %      |                                      |   | 17.8     | %                                |   |   | 18.2                             | %      |   |   | 17.9 | % |
|                                                                                |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Franchise restaurant adjusted EBITDA (1):                                           |   |                               |     |   |                                      |   |     |                             |   |   |                             |   |   |   |   |   |
| Franchised and licensed restaurants and other revenue                               |   | $                                  | 27,813   |   |                                      | $      | 39,480   |                             |   | $      | 67,293                           |   |   | $ | 68,312 |   |
| Less: franchised and licensed restaurants and other expense                         |   |                               | (12,218  | )      |                                      |   | (16,524  | )                                |   |   | (28,742                          | )      |   |   | (30,534 | ) |
| Add: depreciation and amortization expense                                          |   |                               | 1,424    |   |                                      |   | 636      |                             |   |   | 2,060                            |   |   |   | 1,119 |   |
| Franchise restaurant adjusted EBITDA                                                |   | $                                  | 17,019   |   |                                      | $      | 23,592   |                             |   | $      | 40,611                           |   |   | $ | 38,897 |   |

| (1) | Refer to definitions of company-operated restaurant-level non-GAAP measures and franchise non-GAAP measures within subheading “Presentation of Non-GAAP Measures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                     |   | Company-operated |    |   | Franchised |   |    | Licensed |   |   | Total   |   |
|--------------------------|--------|------------------|---------|--------|------------|--------|---------|----------|--------|--------|---------|--------|
| Open at November 2, 2009 |   |             | 476     |   |       |   | 1,232   |     |   |   | 205     |   |   |   | 1,913 |   |
| New                      |   |             | 1       |   |       |   | 8       |     |   |   | 10      |   |   |   | 19 |   |
| Closed                   |   |             | (9      | )      |       |   | (19     | )        |   |   | (8      | )      |   |   | (36 | ) |
| Divested                 |   |             | (1      | )      |       |   | — |     |   |   | — |   |   |   | (1 | ) |
| Acquired                 |   |             | — |   |       |   | 1       |     |   |   | — |   |   |   | 1 |   |
| Open at November 1, 2010 |   |             | 467     |   |       |   | 1,222   |     |   |   | 207     |   |   |   | 1,896 |   |

|                                                                                           |   | Twelve Weeks |   |   | Forty Weeks |   |
|------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-------------|--------|
| Company-operated restaurant-level adjusted EBITDA margin for the period ended November 2, 2009 |   |         | 17.4   | %      |        |   | 17.9 | % |
| Increase in food and packaging costs                                                           |   |         | (1.2   | )      |        |   | (0.9 | ) |
| Payroll and other employee benefits:                                                           |   |         |   |   |        |   |   |   |
| Decrease in labor costs, excluding workers’ compensation                                 |   |         | 2.0    |   |        |   | 0.3 |   |
| Increase in workers’ compensation expense                                                |   |         | (0.2   | )      |        |   | (0.2 | ) |
| Occupancy and other (excluding depreciation and amortization):                                 |   |         |   |   |        |   |   |   |
| Decrease in repairs and maintenance                                                            |   |         | 0.3    |   |        |   | 0.2 |   |
| Decrease in utilities expense                                                                  |   |         | 0.3    |   |        |   | 0.5 |   |
| Decrease in general liability insurance expense                                                |   |         | 0.2    |   |        |   | 0.2 |   |
| Increase in rent expense                                                                       |   |         | (0.2   | )      |        |   | (0.1 | ) |
| Other, net                                                                                     |   |         | (0.1   | )      |        |   | 0.1 |   |
| Advertising expense                                                                            |   |         | 0.1    |   |        |   | 0.2 |   |
| Company-operated restaurant-level adjusted EBITDA margin for the period ended November 1, 2010 |   |         | 18.6   | %      |        |   | 18.2 | % |

----

| Hardee’sQuarter:                                       |   | Successor                              |   |   | Predecessor                            |   |
|--------------------------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|
|                                                         |   | TwelveWeeks EndedNovember 1, 2010 |   |   | TwelveWeeks EndedNovember 2, 2009 |   |
| Franchised and licensed restaurants and other revenue:       |   |                                   |   |   |                                   |   |
| Royalties                                                    |   | $                                      | 13,214 |   |                                   | $      | 11,892 |   |
| Distribution centers                                         |   |                                   | 4,729  |   |                                   |   | 5,457 |   |
| Rent and other occupancy                                     |   |                                   | 3,081  |   |                                   |   | 2,711 |   |
| Franchise fees                                               |   |                                   | 187    |   |                                   |   | 214 |   |
| Total franchised and licensed restaurants and other revenue  |   | $                                      | 21,211 |   |                                   | $      | 20,274 |   |
| Franchised and licensed restaurants and other expenses:      |   |                                   |   |   |                                   |   |   |   |
| Administrative expense (including provision for bad debts)   |   | $                                      | 2,125  |   |                                   | $      | 1,808 |   |
| Distribution centers                                         |   |                                   | 4,835  |   |                                   |   | 5,495 |   |
| Rent and other occupancy                                     |   |                                   | 2,530  |   |                                   |   | 1,958 |   |
| Total franchised and licensed restaurants and other expenses |   | $                                      | 9,490  |   |                                   | $      | 9,261 |   |

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| Hardee’sYear To Date:                                  |   | Successor                          |   |   | Predecessor                         |   |   | Successor/Predecessor            |   |   | Predecessor                      |   |
|--------------------------------------------------------------|--------|------------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------|--------|--------|----------------------------------|--------|
|                                                         |   | SixteenWeeks EndedNovember 1, 2010 |   |   | Twenty-FourWeeks EndedJuly 12, 2010 |   |   | FortyWeeks EndedNovember 1, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Franchised and licensed restaurants and other revenue:       |   |                               |   |   |                                |   |   |                             |   |   |                             |   |
| Royalties                                                    |   | $                                  | 17,583 |   |                                | $      | 24,702 |                             |   | $      | 42,285                           |   |   | $ | 40,281 |   |
| Distribution centers                                         |   |                               | 5,869  |   |                                |   | 9,220  |                             |   |   | 15,089                           |   |   |   | 18,067 |   |
| Rent and other occupancy                                     |   |                               | 4,074  |   |                                |   | 5,187  |                             |   |   | 9,261                            |   |   |   | 9,119 |   |
| Franchise fees                                               |   |                               | 287    |   |                                |   | 371    |                             |   |   | 658                              |   |   |   | 845 |   |
| Total franchised and licensed restaurants and other revenue  |   | $                                  | 27,813 |   |                                | $      | 39,480 |                             |   | $      | 67,293                           |   |   | $ | 68,312 |   |
| Franchised and licensed restaurants and other expenses:      |   |                               |   |   |                                |   |   |                             |   |   |                             |   |   |   |   |   |
| Administrative expense (including provision for bad debts)   |   | $                                  | 2,864  |   |                                | $      | 3,320  |                             |   | $      | 6,184                            |   |   | $ | 5,727 |   |
| Distribution centers                                         |   |                               | 5,999  |   |                                |   | 9,352  |                             |   |   | 15,351                           |   |   |   | 17,947 |   |
| Rent and other occupancy                                     |   |                               | 3,355  |   |                                |   | 3,852  |                             |   |   | 7,207                            |   |   |   | 6,860 |   |
| Total franchised and licensed restaurants and other expenses |   | $                                  | 12,218 |   |                                | $      | 16,524 |                             |   | $      | 28,742                           |   |   | $ | 30,534 |   |

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|                               |   | Successor/Predecessor            |   |   | Predecessor                      |   |
|------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
|                               |   | FortyWeeks EndedNovember 1, 2010 |   |   | FortyWeeks EndedNovember 2, 2009 |   |
| Remodels:                          |   |                             |   |   |                             |   |
| Carl’s Jr.                   |   | $                                | 2,582  |   |                             | $      | 6,634 |   |
| Hardee’s                     |   |                             | 14,883 |   |                             |   | 17,885 |   |
| Capital Maintenance:               |   |                             |   |   |                             |   |   |   |
| Carl’s Jr.                   |   |                             | 8,479  |   |                             |   | 11,516 |   |
| Hardee’s                     |   |                             | 11,749 |   |                             |   | 12,795 |   |
| New restaurants/rebuilds:          |   |                             |   |   |                             |   |   |   |
| Carl’s Jr.                   |   |                             | 8,277  |   |                             |   | 10,928 |   |
| Hardee’s                     |   |                             | 2,607  |   |                             |   | 3,905 |   |
| Dual-branding:                     |   |                             |   |   |                             |   |   |   |
| Carl’s Jr.                   |   |                             | 672    |   |                             |   | 641 |   |
| Hardee’s                     |   |                             | 2,120  |   |                             |   | 273 |   |
| Real estate/franchise acquisitions |   |                             | 20     |   |                             |   | 3,234 |   |
| Corporate/other                    |   |                             | 914    |   |                             |   | 9,802 |   |
| Total                              |   | $                                | 52,303 |   |                             | $      | 77,613 |   |

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

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Item 1. Legal Proceedings

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Item 1A. Risk Factors

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| ·   | increasing our vulnerability to adverse economic, industry or competitive developments; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | requiring a substantial portion of our cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, therefore reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | exposing us to the risk of increased interest rates because certain of our borrowings, including borrowings under our Credit Facility, will be at variable rates of interest; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | making it more difficult for us to satisfy our obligations with respect to our indebtedness, including the Notes, and any failure to comply with the obligations of any of our debt instruments, including restrictive covenants and borrowing conditions, could result in an event of default under the indenture governing the Notes and the agreements governing such other indebtedness; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | restricting us from making strategic acquisitions or causing us to make non-strategic divestitures; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | limiting our ability to obtain additional financing for working capital, capital expenditures, product development, debt service requirements, acquisitions and general corporate or other purposes; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limiting our flexibility in planning for, or reacting to, changes in our business or market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged and who therefore, may be able to take advantage of opportunities that our leverage prevents us from exploiting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | incur or guarantee additional debt or issue certain preferred equity; |
|--------------------|-----------------------------------------------------------------------|

| ·   | pay dividends on or make distributions to holders of our common stock or make other restricted payments; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | sell certain assets; |
|--------------------|----------------------|

| ·   | create or incur liens on certain assets to secure debt; |
|--------------------|---------------------------------------------------------|

| ·   | make certain investments; |
|--------------------|---------------------------|

| ·   | designate subsidiaries as unrestricted subsidiaries; |
|--------------------|------------------------------------------------------|

| ·   | consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; or |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | enter into certain transactions with affiliates. |
|--------------------|--------------------------------------------------|

| ·   | the lenders under our Credit Facility could elect to terminate their commitments thereunder and cease making further loans to us; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be immediately due and payable, together with accrued and unpaid interest, which would prevent us from using our cash flows for other purposes; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | if we are unable to pay amounts outstanding and declared immediately due and payable, the holders of such indebtedness could proceed against the collateral granted to them to secure the indebtedness; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we could ultimately be forced into bankruptcy or liquidation. |
|--------------------|---------------------------------------------------------------|

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Item 6. Exhibits

| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |
|        | 31.1   |        | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934. |
|        |   |        |   |
|        | 31.2   |        | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934. |
|        |   |        |   |
|        | 32.1   |        | Certification of the Chief Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. |
|        |   |        |   |
|        | 32.2   |        | Certification of the Chief Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. |
|        |   |        |   |

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SIGNATURES

|                   |   | CKE RESTAURANTS, INC.                                                       |
|------------------------|--------|-----------------------------------------------------------------------------|
|                   |   |                                                                        |
| Date: December 8, 2010 |   | /s/ Reese Stewart                             |
|                   |   | Reese Stewart                                                               |
|                   |   | Senior Vice PresidentChief Accounting Officer(Principal Accounting Officer) |

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| Exhibit No. |   | Description |
|-------------|--------|-------------|
|        |   |        |
|        | 31.1   |        | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934. |
|        |   |        |   |
|        | 31.2   |        | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934. |
|        |   |        |   |
|        | 32.1   |        | Certification of the Chief Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. |
|        |   |        |   |
|        | 32.2   |        | Certification of the Chief Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. |

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