Flagstar Companies Inc

Carrows and Coco's, the Irvine-based restaurant chains owned by Flagstar Companies Inc., are joining the growing number of restaurants with new Spanish-language advertising and marketing campaigns. The restaurants that formerly were owned by Family Restaurants Group in Irvine soon will introduce Spanish-language newspaper inserts that incorporate discount coupons.

Looking to gain complete control of the Hardee's burger chain, CKE Restaurants Inc. said Thursday that it plans to buy 557 Hardee's restaurants from the former Flagstar Cos. in a deal valued at $415 million. The acquisition, which had been rumored for months, gives CKE the capability to convert all 3,605 Hardee's into Carl's Jr. restaurants, giving Carl's Jr. a long-sought nationwide presence.

Spartanburg, S.C.-based Flagstar Companies Inc., which owns the El Pollo Loco, Coco's and Carrows restaurants, reported that the three Irvine-based chains helped to counter weak sales results at some of the company's other restaurant operations during the second quarter ended June 30. El Pollo Loco has enjoyed "exceptionally strong sales trends," according to Flagstar Chairman and Chief Executive James B. Adamson.

The three Irvine-based restaurant chains owned by South Carolina-based Flagstar Cos. Inc. reported mixed results in the third quarter. Operating profits at El Pollo Loco rose 2.9% to $3.5 million, thanks to higher customer traffic. Sales at the 244-unit Mexican charbroiled chicken chain rose 1.2% to $33.1 million, and sales at stores open at least a year--a key measure of growth--rose 1.9%. Sales at the 97 company-owned stores rose an average of 3.5% to $309,200. For the nine months ended Oct.

In the wake of charges that it has been guilty of racial discrimination at several of its Denny's restaurants, the chain's parent company on Thursday signed an agreement with the NAACP pledging to hire and promote minorities and increase purchases from minority-owned businesses.

U.S. government officials and civil rights advocates, hailing a "new partnership" dedicated to weeding out racism in commercial establishments, announced a record $54.4-million discrimination settlement with the Denny's restaurant chain Tuesday. The settlement, which earmarks $28 million for victims of discrimination at California Denny's restaurants, closes the book on two class-action lawsuits that became a modern version of the lunch-counter protests of the civil rights movement's early days.

U.S. government officials and civil rights advocates, hailing a "new partnership" dedicated to weeding out racism in commercial establishments, announced a record $54.4-million discrimination settlement with the Denny's restaurant chain Tuesday. The settlement, which earmarks $28 million for victims of discrimination at California Denny's restaurants, closes the book on two class-action lawsuits that became a modern version of the lunch-counter protests of the civil rights movement's early days.

In a surprise move that followed years of racial controversy and a losing quarter, Flagstar Chairman Jerry Richardson, co-founder of the Denny's and Hardee's restaurant chains, announced his resignation Tuesday, effective immediately. Richardson, 58, stunned more than 200 shareholders by delivering the news at the end of Flagstar Cos.' annual meeting.

In a new allegation of racial discrimination at Denny's, five San Diego African-Americans--including a Navy officer and a Democratic Party official--have filed a $10-million federal discrimination lawsuit against two Southland restaurants. The suit, filed Thursday in U.S District Court in Santa Ana, charges that employees at Denny's in Costa Mesa and San Diego denied "African-American citizens the ability to use and enjoy public accommodations on the same basis as white persons."

California's 350 company-owned Denny's restaurants have been sued for allegedly cheating managers out of overtime, the latest in a series of such suits against well-known companies. The suit was filed by San Fernando Valley residents Arif U. Khan and Rosa Mares, who no longer work at company-owned Denny's restaurants, said their lawyer, Clifford H. Pearson of Tarzana. Khan and Mares each earned about $35,000 a year at their old jobs.

California's 350 company-owned Denny's restaurants have been sued for allegedly cheating managers out of overtime, the latest in a series of such suits against well-known companies. The suit was filed by San Fernando Valley residents Arif U. Khan and Rosa Mares, who no longer work at company-owned Denny's restaurants, said their lawyer, Clifford H. Pearson of Tarzana. Khan and Mares each earned about $35,000 a year at their old jobs.

Flagstar Companies, which operates the Denny's, El Pollo Loco, Carrows and Coco's restaurant chains, is considering what bankruptcy attorneys describe as a "prepackaged" Chapter 11 bankruptcy filing, according to Nation's Restaurant News. In a prepackaged filing, debtors typically enter Bankruptcy Court with a reorganization plan that's been pre-approved by creditors.

Kohlberg, Kravis Roberts & Co. paid just a nickel a share to solidify its control of Flagstar Cos., the debt-burdened parent of the Denny's restaurant chain. A unit of Donaldson, Lufkin & Jenrette Inc. sold 3.03 million Flagstar shares to a KKR affiliate for $151,792, according to a filing with the Securities and Exchange Commission. DLJ representatives didn't have an immediate comment about why the New York-based investment firm sold Flagstar shares for such a bargain price.

Carrows and Coco's, the Irvine-based restaurant chains owned by Flagstar Companies Inc., are joining the growing number of restaurants with new Spanish-language advertising and marketing campaigns. The restaurants that formerly were owned by Family Restaurants Group in Irvine soon will introduce Spanish-language newspaper inserts that incorporate discount coupons.

Spartanburg, S.C.-based Flagstar Companies Inc., which owns the El Pollo Loco, Coco's and Carrows restaurants, reported that the three Irvine-based chains helped to counter weak sales results at some of the company's other restaurant operations during the second quarter ended June 30. El Pollo Loco has enjoyed "exceptionally strong sales trends," according to Flagstar Chairman and Chief Executive James B. Adamson.

Despite signs that the California economy continues to recover, some locals remain uncertain that the state is rebounding from the economic miseries of the early 1990s. So, if it's of any comfort, two out-of-town executives who keep tabs on the Golden State from the other coast say that the recovery seems to be continuing. "I'm an outsider, but I like California," said Jim Adamson, chief executive officer of Flagstar Cos. Inc., the Spartanburg, S.C.

Despite signs that the California economy continues to recover, some locals remain uncertain that the state is rebounding from the economic miseries of the early 1990s. So, if it's of any comfort, two out-of-town executives who keep tabs on the Golden State from the other coast say that the recovery seems to be continuing. "I'm an outsider, but I like California," said Jim Adamson, chief executive officer of Flagstar Cos. Inc., the Spartanburg, S.C.

Flagstar Cos. Inc. has completed its previously announced, $300-million acquisition of the Coco's and Carrows restaurant chains from Irvine-based Family Restaurants Inc., the companies said Thursday. The acquisition of the 330 Coco's and Carrows locations boosted Flagstar's total number of restaurants to more than 2,900 nationwide. The Spartanburg, S.C., company, which also owns the Denny's and El Pollo Loco chains, has more than 300,000 employees and nearly $3 billion in yearly revenue.

Flagstar Cos. of Spartanburg, S.C., will complete its previously announced $300-million acquisition of the Coco's and Carrows chains later this week from Irvine-based Family Restaurants Inc., Flagstar officials said Monday. The deal, announced March 4, would give Flagstar control over more than 800 restaurants in California. Flagstar, which already owns the El Pollo Loco and Denny's chains, is buying a total of 330 Coco's and Carrows units.