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Carl's Jr., Hardee's hold Q2 income flat as comps fall
September 16, 2009
Carl's Jr. and Hardee's parent company CKE Restaurants Inc. was able to maintain its level of net income over the prior year even as company-owned same-store sales declined.For the second quarter ending Aug. 10, blended comps were down 4.6 percent, compared to an increase of 3.6 percent in the same period last year.
Comps at company-owned Carl's Jr. stores were down 6.1 percent, compared to an increase of 3.8 percent in the same period last year. On a two-year basis, same-store sales decreased 2.3 percent.
At company-owned Hardee's stores, comps were down 2.7 percent, compared to an increase of 3.3 percent in the same period last year. On a two-year basis, same-store sales were up 0.6 percent.
Revenues for the quarter were down 4.7 percent at $336 million, compared to $352.5 million in the same period last year. Year to date, revenues were down 4.4 percent at $782.8 million, compared to $818.7 million last year.
Net income for the quarter was essentially flat at $12.25 million compared to $12.34 million in the same period last year. Year to date, net income was down 8 percent at $ 26.65 million, compared to $28.96 million last year.
The company remodeled eight Carl's Jr. and 25 Hardee's restaurants and completed a combined six dual-branded Green Burrito and Red Burrito restaurant conversions during the quarter. Carl's Jr. and Hardee's increased their system-wide unit count by 24 restaurants year-to-date for a consolidated total of 3,140.
"I am pleased we held net income and restaurant level margins constant with the prior year in such a difficult sales environment, even as we absorbed a $2.1 million or 100 basis point, increase in depreciation primarily as the result of our ongoing remodel program," said CKE Restaurants CEO Andrew Puzder. "Our focus on premium quality products, our successful cost management and favorable commodity pricing drove our performance for the quarter. We continue to take aggressive steps to drive same-store sales while maintaining profitability."
CKE Restaurants also reported its period eight ended Sept. 7 same-store sales. Blended same-store sales at company-owned restaurants were down 2.3 percent, compared to an increase of 0.4 percent in the same period last year. Comps at company-owned Carl's Jr. stores were down 3.1 percent, compared to a decline of 0.1 percent in the same period last year. At Hardee's, comps at company-owned stores were down 1.3 percent, compared to an increase of 1.1 percent in the same period last year.
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