News
CKE Q1 blended-store comps continue decline
May 26, 2009
CARPINTERIA, Calif. — CKE Restaurants Inc.'s company-operated blended same-store sales for its Carl's Jr. and Hardee's brands were down 3.5 percent for period four and down 1.8 percent for the first quarter ended May 18, the company has announced.
Comparable-store sales for company-owned Carl's Jr. locations for the quarter were down 5.1 percent, following an increase of 3.9 percent in the same quarter last year.
An increase in unemployment in California from 6.6 percent last April to 11 percent this April — significantly higher than the national unemployment rate of 8.9 percent for April 2009 — negatively impacted comps at Carl's Jr., which has 362, or 87 percent, of company-operated Carl's Jr.'s restaurants located in California, said Andrew F. Puzder, CKE chief executive officer.
Hardee's same-store sales
Comps at company-owned Hardee's locations for the quarter were up 2.5 percent, following a decline of 0.6 percent in the same quarter last year.
"Poor weather conditions for much of period four were primarily responsible for Hardee's flat same-store sales," Puzder said. Late in the quarter, Hardee's re-introduced its successful Six Dollar Thickburger to resonate with consumers seeking a value option of equal quality of casual-dining restaurants.
Company strategy
"While we were pleased with positive same-store sales of 2.5 percent at Hardee's for the first quarter, the decline in same-store sales at Carl's Jr. disappointed our management team," Puzder said. "Improving same-store sales at both brands remains a high priority for us. However, maintaining our profitability and brand image over the long-term is a higher priority than generating short-term positive same-store sales."
The company will report its first quarter earnings and period five same-store sales results on or about June 24.
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