a stairway landing, I was greeted at the top of the stairs by Carl N. Karcher.
Carl looked like a stylish figure from the big-band era, wearing a brown checked jacket, a white shirt, a brown tie, and jaunty two-tone shoes. He was tall and strong, and seemed in remarkably good shape. The walls of his office were covered with plaques and mementos, with photographs of Carl beside presidents, famous ballplayers, former employees, grandchildren, priests, cardinals, Mikhail Gorbachev, the Pope. Carl proudly removed a framed object from the wall and handed it to me. It was the original receipt for $326, confirming the purchase of his first hot dog cart.
Eight weeks after being locked out of his office in 1993, Carl engineered a takeover of the company. Through a complex series of transactions, a partnership headed by financier William P. Foley II assumed some of Carl’s debts, received much of his stock in return, and took control of CKE. Foley became the new chairman of the board. Carl was named chairman emeritus and got his old office back. Almost all of the executives and directors who had opposed him subsequently left the company. The Green Burrito plan was adopted and proved a success. The new management at CKE seemed to have turned the company around, raising the value of its stock. In July of 1997, CKE purchased Hardee’s for $327 million, thereby becoming the fourth-largest hamburger chain in the United States, joining McDonald’s, Burger King, and Wendy’s at the top. And signs bearing the Carl’s Jr. smiling little star started going up across the United States.
Carl seemed amazed by his own life story as he told it. He’d been married to Margaret for sixty years. He’d lived in the same Anaheim house for almost fifty years. He had twenty granddaughters and twenty grandsons. For a man of eighty, he had an impressive memory, quickly rattling off names, dates, and addresses from half a century ago. He exuded the genial optimism and good humor of his old friend Ronald Reagan. “My whole philosophy is — never give up,” Carl told me. “The word ‘can’t’ should not exist… Have a great attitude… Watch the pennies and the dollars will take care of themselves… Life is beautiful, life is fantastic, and that is how I feel about every day of my life.” Despite CKE’s expansion, Carl remained millions of dollars in debt. He’d secured new loans to pay off the old ones. During the worst of his financial troubles, advisers pleaded with him to declare bankruptcy. Carl refused; he’d borrowed more than $8 millionfrom family members and friends, and he would not walk away from his obligations. Every weekday he was attending Mass at six o’clock in the morning and getting to the office by seven. “My goal in the next two years,” he said, “is to pay off all my debts.”
I looked out the window and asked how he felt driving through Anaheim today, with its fast food restaurants, subdivisions, and strip malls. “Well, to be frank about it,” he said, “I couldn’t be happier.” Thinking that he’d misunderstood the question, I rephrased it, asking if he ever missed the old Anaheim, the ranches and citrus groves.
“No,” he answered. “I believe in Progress.”
Carl grew up on a farm without running water or electricity. He’d escaped a hard rural life. The view outside his office window was not disturbing to him, I realized. It was a mark of success.
“When I first met my wife,” Carl said, “this road here was gravel and now it’s blacktop.”
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B EFORE ENTERING the Ray A. Kroc Museum, you have to walk through McStore. Both sit on the ground floor of McDonald’s corporate headquarters, located at One McDonald’s Plaza in Oak Brook, Illinois. The headquarters building has oval windows and a gray concrete façade — a look that must have seemed space-age when the building opened three decades ago. Now it seems stolid and drab, an architectural relic of the