CKE Restaurants, Inc. Reports Positive Blended Same-Store Sales for Period Nine and for the Fifth Consecutive Period

By: CKE Restaurants | 1,014 Shares 81 Reads

CARPINTERIA, Calif., Oct. 17 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today same-store sales for the four weeks ended Oct. 8, 2007, for Carl's Jr.(R) and Hardee's(R).



    Brand                   Period 9                    Year to Date



                      FY 2008       FY 2007       FY 2008       FY 2007

    Carl's Jr.        -1.1 %        +7.2 %        +0.7 %        +5.7 %

    Hardee's          +1.3 %        +7.6 %        +2.3 %        +4.9 %

    Blended           +0.1 %        +7.4 %        +1.5 %        +5.3 %

Commenting on the Company's performance, Andrew F. Puzder, president and chief executive officer, said, "We are pleased to report positive blended same store sales for Hardee's and Carl's Jr. for the fifth consecutive period. We are also pleased to report a 1.3 percent increase in same-store sales for Hardee's -- the chain's 24th consecutive period of positive same-store sales. Blended same-store sales for period nine were up 0.1 percent against a very strong 7.4 percent increase in the prior year period. We believe that our continued strategy of offering innovative, premium products and superior customer service combined with our ongoing remodel and dual-branding programs should contribute to sales in the near- and long-term."

"As we indicated in our second quarter earnings conference call, we are taking actions to offset commodity and other cost increases we are experiencing. Among other things, we implemented a price increase at both Carl's Jr. and Hardee's at the start of period 10, the final period of our third fiscal quarter. We intend to provide additional comments on our third quarter cost trends in our period 10 same-store sales release."

"During period nine, Carl's Jr. featured the Patty Melt burger. The chain's authentic version of an American burger classic features a charbroiled beef patty topped with grilled onions and melted American cheese between two slices of grilled rye bread. Carl's Jr. also introduced the Strawberry-Banana Smoothie Shake during the period," said Puzder.

"Strong same-store sales results in the prior year at Carl's Jr. resulted in a modest dip in same-store sales of 1.1 percent in period nine of this year. However, those strong prior year results were enough to fuel a same-store sales increase of approximately six percent on a two-year cumulative basis." Revenue for period nine from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $44.5 million.

"Hardee's introduced the Hawaiian Chicken Sandwich on Sept. 17, and media support for the product was in place for the second half of the period. Featuring a charbroiled chicken breast topped with teriyaki sauce, melting Swiss cheese, and a juicy slice of grilled pineapple, dressed with red onion, tomato, lettuce and mayonnaise, the sandwich represents the chain's latest example of bringing sit-down restaurant quality products to a fast-food environment. In addition, the brand also featured the unique Breakfast Club sandwich and Blueberry Biscuits during the breakfast daypart," Puzder continued.

"On a two-year cumulative basis, Hardee's same-store sales have increased almost nine percent. In addition, Hardee's period nine average unit volume was higher than any comparable period nine since 1994, which is as far back as we can check." Revenue for period nine from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $46.0 million.



    For period nine, consolidated revenue from company-operated restaurants

(exclusive of all franchise-related revenue and royalties) was approximately

as follows:



          Carl's Jr.                    $ 44.5 million

          Hardee's                      $ 46.0 million

          Total                         $ 90.5 million

Same-store sales results for period 10 of fiscal year 2008, ending Nov. 5, 2007, will be reported on or about Nov. 14, 2007.

As of the end of its fiscal 2008 second quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,036 franchised, licensed or company-operated restaurants in 42 states and in 13 countries, including 1,111 Carl's Jr. restaurants and 1,909 Hardee's restaurants.

SAFE HARBOR DISCLOSURE

Matters discussed in this news release contain forward-looking statements relating to future plans and developments, financial goals and operating performance that are based on management's current beliefs and assumptions. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond the Company's control and which may cause results to differ materially from expectations. Factors that could cause the Company's results to differ materially from those described include, but are not limited to, whether or not restaurants will be closed and the number of restaurant closures, consumers' concerns or adverse publicity regarding the Company's products, the effectiveness of operating initiatives and advertising and promotional efforts (particularly at the Hardee's brand), changes in economic conditions or prevailing interest rates, changes in the price or availability of commodities, availability and cost of energy, workers' compensation and general liability premiums and claims experience, changes in the Company's suppliers' ability to provide quality and timely products to the Company, delays in opening new restaurants or completing remodels, severe weather conditions, the operational and financial success of the Company's franchisees, franchisees' willingness to participate in the Company's strategies, the availability of financing for the Company and its franchisees, unfavorable outcomes in litigation, changes in accounting policies and practices, effectiveness of internal controls over financial reporting, new legislation or government regulation (including environmental laws), the availability of suitable locations and terms for the sites designated for development, and other factors as discussed in the Company's filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the New York Stock Exchange.

SOURCE CKE Restaurants, Inc.

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