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Carl's Jr., Hardee's Q1 sales up 2.6 percent

June 27, 2012

CKE Restaurants Inc., parent company of Carl’s Jr. and Hardee’s brands, have announced its first fiscal quarter financial results for the 16 weeks ended May 21, including a blended same-store sales increase of 2.6 percent.

Both Carl's Jr. and Hardee's same-store sales increased 2.6 percent during the quarter. This is compared to a blended increase of 5.5 percent over the same period last year, behind Hardee’s 9.6 percent jump and Carl’s Jr.’s 2.1 percent increase.

At the end of the first quarter, the blended 52 week average unit volume for Carl's Jr. and Hardee's was $1.2 million. The fifty-two week average unit volumes for Carl's Jr. and Hardee's were $1.4 million and $1.1 million, respectively.

The company reported total revenue of $412.3 million for the fiscal 2013 first quarter, an increase of $11.7 million, or 2.9 percent, compared to the fiscal 2012 first quarter.

"Both brands continued to generate positive same-store sales results during the first quarter. The company has now had seven consecutive quarters of positive blended same-store sales. Hardee's has now had eight consecutive quarters of positive same-store sales and Carl's Jr. posted its fifth consecutive quarter of positive same-store sales," said Andrew F. Puzder, CKE CEO.

For Q1, the company-operated restaurant-level adjusted EBITDA margin was 19.3 percent, a 230 basis point increase over the prior year, in part due to higher average unit volumes which benefitted from price increases taken over the past year.

Food and packaging costs decreased 100 basis points, primarily as a result of higher year-over-year restaurant pricing and lower commodity costs for produce, pork, and dairy, partially offset by higher commodity costs for beef. Occupancy and other expenses, excluding depreciation and amortization, decreased 90 basis points, primarily as a result of lower repairs and maintenance expense. Labor and benefits decreased 50 basis points. These improvements were partially offset by a 10 basis point increase in advertising expense.

As of May 21, 2012, the company's systemwide restaurant portfolio consisted of 1,322 Carl’s Jr. restaurants (424 company operated; 694 domestic franchised; 204 international franchised) and 1,932 Hardee’s restaurants (468 company operated; 1,227 domestic franchised; 237 international franchised).

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