CKE Restaurants, Inc. Reports Positive Period 11 Blended Same-Store Sales
Both Brands Record Highest Period 11 Average Unit Volumes in Recent History
CARPINTERIA, Calif., Dec. 12 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today period 11 same-store sales for the four weeks ended Dec. 3, 2007, for Carl's Jr.® and Hardee's®.
Brand Period 11 Year to Date
FY 2008 FY 2007 FY 2008 FY 2007
Carl's Jr. +2.5 % +0.5 % +1.0 % +5.1 %
Hardee's +3.2 % +5.2 % +2.5 % +4.8 %
Blended +2.8 % +2.9 % +1.7 % +4.9 %
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 of 2.8 percent for period 11. This also marks the 26th consecutive period -- or two full fiscal years -- of positive same-store sales for Hardee's. On a two-year cumulative basis, Hardee's same-store sales have increased 8.4 percent."
"Both brands implemented a price increase at the start of period 11 to help offset increased operating costs. Similar to period 10, when both brands took their first price increase, it does not appear that sales trends have been negatively impacted, although winter weather conditions in the Midwest and the Southeast during period 12 as we are rolling over good weather in the prior year make comparisons difficult. Going forward, we will maintain our focus on our innovative premium products and superior customer service initiatives, as well as our ongoing remodel and dual-branding programs."
"Carl's Jr. promoted the Portobello Mushroom Six Dollar Burger(TM) during period 11. The sandwich features a charbroiled, 100 percent Angus beef patty, premium-quality Portobello mushrooms, that have been sliced and sauteed with garlic and parsley, and Swiss cheese, topped with red onion, tomato and lettuce," said Puzder. "In addition, Carl's Jr. featured the latest variety of its Hand-Scooped Ice Cream Shakes & Malts(TM), the Strawberry Banana Smoothie Shake(TM), and the Green Burrito Taco Salad(TM) during the period, as well as the unique Breakfast Club Sandwich during the breakfast daypart. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased three percent. Average unit volume for period 11 was higher than any comparable period 11 ever." Revenue for period 11 from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $46.2 million. Average unit volume at Carl's Jr. as of the end of period 11 was $1,490,000.
"Hardee's reintroduced the Philly Cheesesteak Thickburger(TM) on Nov. 12. Topped with sliced steak, cheese, green peppers and onions, the "meat-as-a-condiment" burger was very successful during its initial debut last spring, and we had many consumer requests to bring it back. Hardee's also continued to promote the distinctive Country Breakfast Burrito(TM) during the breakfast daypart," Puzder continued. "On a two-year cumulative basis, Hardee's same-store sales have increased 8.4 percent. In addition, Hardee's period 11 average unit volume was higher than any comparable period 11 since 1994, which is as far back as we can check." Revenue for period 11 from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $43.1 million. Average unit volume at Hardee's as of the end of period 11 was $949,000.
For period 11, consolidated revenue from company-operated restaurants
(exclusive of all franchise-related revenue and royalties) was approximately
Carl's Jr. $ 46.2 million
Hardee's $ 43.1 million
Total $ 89.3 million
Same-store sales results for period 12 of fiscal year 2008, ending Dec. 31, 2007, will be reported on or about Jan. 9, 2008.
As of its fiscal 2008 third quarter ended Nov. 5, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,036 franchised, licensed or company-operated restaurants in 43 states and in 14 countries, including 1,121 Carl's Jr. restaurants and 1,915 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.