CKE Restaurants Inc. brands Carl's Jr. and Hardee's continued to be impacted by negative economic conditions in period 10 ended Nov. 2, the company has announced. Blended company-operated same-store sales for the period were down 5.4 percent. Comps at company-owned Carl's. Jr. stores were down 7 percent, and at Hardee's down 3.4 percent.
Total revenue from company-operated restaurants for the period was down 5 percent to $80.9 million, compared to $85.3 million in the same period last year. Revenue from Carl's Jr. company-operated stores was down 5 percent at $44.4 million, compared to $46.8 million in the same period last year. Revenue at Hardee's company-operated restaurants was down 5 percent to $36.5 million, compared to $38.5 million in the same period last year.
"Unemployment rates have continued to worsen while our competitors have escalated the deep discount burger wars. Both of these events are having an adverse impact on same-store sales results for everyone including us," said Andrew F. Puzder, CKE Restaurants CEO. "We remain focused on same-store sales while maintaining our brand positioning and improving our restaurant operating margins."
While Burger King has lowered its Double Cheeseburger price to $1 in many markets and KFC is featuring a $3.99 two-piece grilled chicken meal, Puzder refuses to implement deep discounts.
Instead, Carl's Jr. and Hardee's have been focusing on the value of their premium products. "We continue to move forward with our sales-building initiatives focused on increasing awareness of our excellent value-for-the-money premium products, such as the recently introduced Parmesan Chicken Sandwich at Carl's Jr., and our mid-tier priced items like The Big Carl and The Big Hardee burgers," he said.
The company will report period 11 same-store sales and third quarter earnings results on or about Dec. 8.
