News
Carl's Jr. hurt by competitors' discounting, Hardee's comps up
March 3, 2009
CARPINTERIA, Calif. — Period one same-store sales for the four weeks ended Feb. 23 for Carl's Jr. were down 0.6 percent and up 3.2 percent at Hardee's, parent company CKE Restaurants Inc. has announced.
CKE president Andrew F. Puzder said the Carl's Jr. sales were impacted by significantly higher rainfall amounts in its major California markets and by competitors' value positioning. The chain will continue to offer its premium quality products and has no intention of attempting deep discounting.
Puzder said the company anticipates the economic crisis and competitors' deep discounting will continue to impact sales and profits across the industry. Carl's Jr. will place renewed emphasis on the value of its premium products compared to casual dining.
During the period, Carl's Jr. featured the Charbroiled Steak Sandwich, a charbroiled sirloin steak, topped with onion rings, lettuce, tomato and mayonnaise, and on Feb. 18 introduced snack-sized Green Burrito Crisp Burritos, a flour tortilla filled with ground beef, cheese, and jalapenos, then fried and served with a side of hot sauce. At the end of period one, average unit volume at Carl's Jr. was $1.5 million.
Hardee's
For the period, Hardee's promoted the Chicken Parmesan sandwich and featured its Little Thickburgers as well as its Ham & Three Cheese Breakfast Burrito and Country Potatoes offerings. At the end of period one, Hardee's average unit volume was $999,000, the highest average volume for the brand ever, Puzder said.
"We are now on the brink of surpassing our $1 million AUV goal for Hardee's and are looking forward to setting and achieving a higher goal as Hardee's sales continue their positive trend even in these difficult time," he said.
Revenues
For period one, blended consolidated revenue from company-operated restaurants was approximately $83.9 million, with $46.9 million at Carl's Jr. and $37.0 million at Hardee's.
CKE will report same-store sales results for period two, ending Mar. 23, on or about April 1.
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