CKE Restaurants, Inc. Reports Positive Period 12 Blended Same-Store Sales
Both Brands Record Highest Period 12 Average Unit Volumes in Recent History
CARPINTERIA, Calif., Jan. 9 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today period 12 same-store sales for the four weeks ended Dec. 31, 2007, for Carl's Jr.(R) and Hardee's(R).
Brand Period 12 Year to Date
FY 2008 FY 2007 FY 2008 FY 2007
Carl's Jr. +2.7% +5.6% +1.1% +5.1%
Hardee's -0.6% +9.3% +2.2% +5.2%
Blended +1.2% +7.4% +1.7% +5.2%
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 1.2 percent for period 12. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased 8.3 percent, and Hardee's same-store sales have increased 8.7 percent."
"The positive performance at Carl's Jr. versus prior year was certainly very encouraging, particularly in light of increased competitive discounting while Carl's Jr. promoted the premium-priced Portobello Mushroom Six Dollar Burger(TM) during the lunch/dinner daypart. Hardee's first negative period in the last two fiscal years was the result of difficult weather conditions in the Midwest and Southeast (where all of Hardee's units are located) as previously reported by certain of our competitors. Even with the brand's strong 9.3 percent same-store sales increase and much milder weather in the prior year versus severe weather conditions this year, Hardee's nonetheless came very close to extending its 26 period run of positive same-store sales. This performance was also achieved with increased competitive discounting while Hardee's promoted the premium-priced Philly Cheesesteak Thickburger(R) during the lunch/dinner daypart."
"We hope to continue to see benefits from our premium quality focus, as well as our focus on superior service and cutting edge advertising, particularly as consumers trade down from more casual dining oriented brands," added Puzder. "As of the end of period 12, the trailing 13 period average unit volume at Carl's Jr. was $1,494,000, a $54,000 per unit increase since the end of fiscal 2007. Our trailing 13 period average unit volume at Hardee's is now $951,000, a $35,000 per unit increase since the end of fiscal 2007."
"Carl's Jr. promoted the Portobello Mushroom Six Dollar Burger during period 12. The sandwich features a charbroiled, 100 percent Black 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. introduced the Huevos Rancheros Breakfast Burrito(TM) on Dec. 12. The burrito includes all the classic Mexican breakfast ingredients -- eggs, cheese, beans and ranchero sauce -- with crispy corn tortilla chips all wrapped in a burrito to make it portable. Average unit volume for period 12 was higher than any comparable period 12 ever." Revenue for period 12 from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $49.1 million.
"The Philly Cheesesteak Thickburger was the featured sandwich at Hardee's during period 12. On Dec. 10, Hardee's introduced Bacon Cheddar Fries. Our Natural-Cut Fries are topped with hot cheddar cheese and crumbled bacon, and can be ordered separately or as part of a combo meal for an additional charge. Hardee's also continued to promote the distinctive Country Breakfast Burrito(TM) during the breakfast daypart," Puzder continued. "Hardee's period 12 average unit volume was higher than any comparable period 12 since 1994, which is as far back as we can check." Revenue for period 12 from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $40.4 million.
For period 12, consolidated revenue from company-operated restaurants
(exclusive of all franchise-related revenue and royalties) was approximately
Carl's Jr. $49.1 million
Hardee's $40.4 million
Total $89.5 million
Same-store sales results for period 13 of fiscal year 2008, ending Jan. 28, 2008, will be reported on or about Feb. 6, 2008.
As of its fiscal 2008 third quarter ended Nov. 5, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,052 franchised, licensed or company-operated restaurants in 42 states and in 13 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.