Carl’s Jr. Parent to Create Buffet Company

CKE Restaurants unveiled plans to create a new company with 25 restaurants that will try to expand into the buffet-style restaurant niche. CKE, the Anaheim-based parent company of Carl’s Jr. and Hardee’s burger chains, said Star Buffet Inc. will be made up of CKE’s 16 HomeTown Buffets and two Casa Bonita Mexican-theme restaurants. In addition, the company has agreed to acquire seven restaurants from North’s Restaurants Inc., which operates in the Northwest. CKE said it plans to sell 55% of Star Buffet through an initial public stock offering later this year. The company will be based in Salt Lake City. CKE also announced a “strategic alliance” with Stacey’s Buffet Inc., a Largo, Fla.-based company that operates 24 buffet restaurants with $38.8 million in revenue. CKE will lend $2 million to Stacey’s Buffet in exchange for warrants to purchase up to 30% of Stacey’s Buffet common shares. Star Buffet will appoint two of the company’s five board members. CKE shares rose 81 cents to close at $35.19 on the New York Stock Exchange.