Carl Karcher Enterprises Inc. Costa Mesa Nature...

Carl Karcher Enterprises Inc. Costa Mesa Nature of Business: Operates the Carl’s Jr. chain of fast-food restaurants. Employees Total: 14,300* Orange County: 2,736 Stock Designation: Listed on NASDAQ as “Karchr” Ticker Symbol: “CARL” Friday’s Stock Close: $9.13 Change: +$0.38 Analyst Review: “Carl’s didn’t participate in the value menu concept, and they may have been hurt during the recession. But the intensity of fast-food wars has diminished and as we move out of the recession, consumers will be putting more weight on quality, taste, selection; price will not be as dominant a factor. We think Carl’s stock is undervalued. We don’t expect any miracles this quarter, but we look for it to turn up toward the first half of 1992.” Douglas Christopher, securities analyst Crowell, Weedon & Co., Los Angeles 5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

Jan. 26 Jan. 25 Jan. 30 Jan. 29 FISCAL YEAR ENDING 1987 1988 1989 1990 52-Week High $6.953 $11.062 $13 $17.75 52-Week Low $4.547 $5.422 $7.125 $9.75 Price Per Share $5.453 $7.25 $12.063 $10 Net Earnings (Loss) Per Share -$.33 $.67 $.95 $.30 Price to Earnings Ratio N/A 11:1 13:1 33:1 Average Return to Investor N/A 17% 24% 9%

Jan. 28 FISCAL YEAR ENDING 1991 52-Week High $11 52-Week Low $5.50 Price Per Share $6.50 Net Earnings (Loss) Per Share $.72 Price to Earnings Ratio 9:1 Average Return to Investor 18%

* Figures exclude Carl’s Jr. franchises outside of California. Corporate Outlook: “The Carl’s Jr. restaurant system will continue to grow at 50 or more restaurants per year, with the emphasis being placed on a higher percentage of franchised and international license partners. In five years, we expect systemwide revenues to exceed $1 billion.” Loren C. Pannier, Chief Financial Officer For more information call or write Carl Karcher Enterprises Inc.: P.O. Box 4349, Anaheim, Calif. 92803. (714) 778-7109 Source: Carl Karcher Enterprises, Inc.; Newport Securities Researched by DALLAS M. JACKSON / Los Angeles Times