News
Economy, premium positioning continue to impact Carl's Jr. comps
April 27, 2009
CARPINTERIA, Calif. — CKE Restaurants Inc. has announced blended same-store sales were down 0.5 percent for period three ended April 20 for Carl's Jr. and Hardee's. Year to date, blended comps are down 1.3 percent despite positive comps growth at Hardee's, while the Carl's Jr. primary market of Southern California continues to face soaring unemployment rates.
Same-store sales for Carl's Jr. were down 3.6 percent for the period, compared to an increase of 3.8 percent in the same period last year, reflecting in part a negative impact from Easter traffic. Year to date, comps are down 4.8 percent, compared to an increase of 3.8 percent last year.
During the period, Carl's Jr. rolled out the Kentucky Bourbon Burger and the Green Burrito Crisp burrito.
Hardee's comps were up 3.6 percent for the period, compared to a decline of 0.8 percent in the same period last year. Year to date, Hardee's comps are up 3.3 percent, compared to a decline of 0.4 percent last year.
During the period, Hardee's featured its Western Bacon Thickburger with Beer Battered Onion Rings and Texas Toast Breakfast Sandwiches and continued to promote its quarter-pound Little Thickburger.
"I am pleased with the progress our Hardee's brand made, as same-store sales increased 3.6 percent in the third period — marking the 12th consecutive period that Hardee's has delivered positive same-store sales despite a very challenging economy," said Andrew F. Puzder, CKE chief executive officer. "Our premium product strategy, our successful execution of Hardee's remodeling program, as well as our aggressive customer service improvement campaign fueled this improvement.As stated previously, we are working to return Carl's Jr. to positive territory but will not resort to product-degrading and profit-eroding discounting to do so."
Consolidated revenue
For period three, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was $87.6 million, down 3.5 percent compared to $90.7 million in the same period last year.
Carl's Jr. revenue for the period was flat at $49.3 million.
Hardee's revenue for the period was down 7.5 percent at $38.3 million, compared to $41.4 million in the same period last year.The decline at Hardee's resulted primarily from the refranchising of restaurants during the prior fiscal year, Puzder said.
The company will report same-store sales results for period four of fiscal year 2010, ending May 18 on or about May 27.
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