CKE Restaurants, Inc. Reports Positive Period Two Blended Same-Store Sales
Trailing 13-Period Average Unit Volume at Carl's Jr. Exceeds $1.5 Million
CARPINTERIA, Calif., April 2, 2008, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- CKE Restaurants, Inc. (NYSE: CKR) announced today period two same-store sales for the four weeks ended Mar. 24, 2008, for Carl's Jr.(R) and Hardee's(R).
Brand Period 2 Year to Date
FY 2009 FY 2008 FY 2009 FY 2008
Carl's Jr. +6.0% +1.2% +3.8% -0.8%
Hardee's -2.1% +2.9% -0.2% +2.2%
Blended +2.4% +2.1% +1.9% +0.7%
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 2.4 percent for the second period of fiscal 2009. On a two year basis, blended same store sales are up 4.5 percent. We are also very pleased to report a 6.0 percent increase in same-store sales at Carl's Jr. on top of a 1.2 percent increase in the prior year period."
"While Carl's Jr. benefited from the reintroduction of its popular Chili Cheese Burgers and Chili Cheese Fries, Hardee's continued to be hampered by very inclement weather in the Midwest and Southeast making it difficult to tell what impact, positive or negative, pricing and the economy may be having on its sales. The Easter holiday falling in period two this year versus period three last year negatively impacted both brands by approximately one percent, partially offset by the early spring break week leading up to Easter."
"Carl's Jr. featured Chili Cheese Burgers and Chili Cheese Fries during the period. The burger can be ordered with a single or double charbroiled beef patty, or our 100 percent Black Angus Six Dollar Burger(TM) platform. The patty is topped with beef chili, American cheese, tomatoes, onions, pickles and mustard. Our Chili Cheese Fries are covered with the same beef chili, then 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. The products received media support during the period through a series of 'messy, drippy' commercials," said Puzder. "In addition, Carl's Jr. promoted the unique Cap'n Crunch(R) shake and continued to feature the Huevos Rancheros Breakfast Burrito(TM), a portable version of the Mexican breakfast classic, during the period. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased 7.3 percent. As of the end of period two, the trailing 13 period average unit volume at Carl's Jr. was $1,504,000, an $11,000 per unit increase since the end of fiscal 2008 and an all-time high for the brand." Revenue for period two from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $50.9 million.
"Hardee's promoted the Jalapeno Thickburger(TM) during period two. 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. "Despite a disappointing period two, on a two year basis, Hardee's was still positive one-half of a percent. As of the end of period two, the trailing 13 period average unit volume at Hardee's was $958,000." Revenue for period two from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $41.2 million.
For period two, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:
Carl's Jr. $ 50.9 million
Hardee's $ 41.2 million
Total $ 92.1 million
"We will report same-store sales results for period three of fiscal year 2009, ending Apr. 21, 2008, on or about Apr. 30, 2008."
As of the end of its fiscal fourth quarter on Jan. 28, 2008, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,083 franchised or company-operated restaurants in 42 states and in 13 countries, including 1,141 Carl's Jr. restaurants and 1,926 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.