CKE Restaurants, Inc. Reports Positive Period One Blended Same-Store Sales
CARPINTERIA, Calif., Mar. 4 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today period one same-store sales for the four weeks ended Feb. 25, 2008, for Carl's Jr.(R) and Hardee's(R).
Brand Period 1
FY 2009 FY 2008
Carl's Jr. +1.4% -2.7%
Hardee's +1.6% +1.5%
Blended +1.5% -0.5%
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 1.5 percent for the first period of fiscal 2009. While both brands benefited from the introduction of new products near the end of the period, winter storms during the last half of the period reduced what was shaping up to be even stronger results at both brands."
"Many of our competitors have backed off on their initial efforts to promote premium quality products and have opted to focus on discounting their core products and value-based menus in an effort to drive sales and offset the currently unfavorable macroeconomic environment. We believe this creates an opening for us to reemphasize our superior value and quality which appeals to our core customers who perceive value beyond price alone, as well as those who view our products and price points as favorable to other available dining options, particularly casual dining or fast casual options. We view this as both a sales and branding opportunity which further supports our efforts to distinguish ourselves from the competition."
"Carl's Jr. reintroduced Chili Cheese Burgers and Chili Cheese Fries on Feb. 20. The burger is available on single, double and Six Dollar Burger(TM) platforms. The single and double versions feature a charbroiled beef patty and the Six Dollar Burger features a 100% Black Angus beef patty. All are topped with beef chili, American cheese, tomatoes, onions, pickles and mustard. Our Chili Cheese Fries are covered with the same beef chili, topped with melted jack and cheddar cheese and served with a fork. The fries are available as a side item or can be added to any combo for an additional charge. A series of 'messy, drippy' commercials for the products debuted on the Academy Awards, the next to the last day of period one," said Puzder. "In addition, Carl's Jr. introduced the unique Cap'n Crunch(R) shake and continued to promote the Huevos Rancheros Breakfast Burrito(TM), a portable version of the Mexican breakfast classic, during the period." Revenue for period one from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $46.7 million.
"Hardee's reintroduced the Jalapeno Thickburger(TM) on Feb. 14. Our 100 percent Black Angus beef patty is charbroiled and topped with sliced jalapeno peppers, pepper jack cheese, lettuce, tomato and our zesty Santa Fe sauce. Hardee's also continued to promote the Smoked Sausage Biscuit during the breakfast daypart," Puzder continued. Revenue for period one from
company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $40.5 million.
For period one, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:
Carl's Jr. $46.7 million
Hardee's $40.5 million
Total $87.2 million
"We will report same-store sales results for period two of fiscal year 2009, ending Mar. 24, 2008, on or about Apr. 2, 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.