CKE Restaurants, Inc. Reports Positive Period Five Blended Same-Store Sales
CARPINTERIA, Calif., June 25 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today period five same-store sales for the four weeks ended June 16, 2008, for Carl's Jr.(R) and Hardee's(R).
Brand Period 5 Year to Date
FY 2009 FY 2008 FY 2009 FY 2008
Carl's Jr. +2.5% +2.8% +3.6% +0.5%
Hardee's +2.8% +2.6% +0.1% +2.0%
Blended +2.6% +2.7% +2.0% +1.3%
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 of 2.6 percent for period five of fiscal 2009 and 2.0 percent for the year to date. On a two year basis, blended same-store sales were up 5.3 percent for the fifth period. As of the end of period five, our blended average unit volume for our company-operated stores was $1,191,000, a $29,000 increase from the end of fiscal 2008."
"Carl's Jr. achieved a 2.5 percent same store sales increase over positive same store sales of 2.8 percent last year for a two year cumulative increase of 5.3 percent. The Chili Cheese Burger was the featured sandwich item for period five, and was so popular we have added the sandwich to our regular menu. The burger is topped with beef chili, American cheese, tomatoes, onions, pickles and mustard. We also featured our Chili Cheese Fries, which 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," said Puzder. "In addition, Carl's Jr. promoted the Jalapeno Chicken sandwich and the unique Cap'n Crunch(R) shake during the period. As of the end of period five, the trailing 13-period average unit volume at Carl's Jr. was $1,517,000, a $24,000 per unit increase since the end of fiscal 2008 and an all-time high for the brand." Revenue for period five from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $48.7 million.
"Hardee's same-store sales increased 2.8 percent versus positive same-store sales of 2.6 percent last year for a two year cumulative increase of 5.4 percent. During the period, Hardee's featured the distinctively premium quality and premium priced Prime Rib Thickburger(R). The latest 'meat-as-a-condiment' creation is made by topping a charbroiled, one-third pound, 100% Black Angus beef patty with thinly-sliced prime rib, horseradish sauce, Swiss cheese, and grilled onions all on a toasted Ciabatta roll. A cup of au jus is available for dipping upon request," Puzder continued. "The advertising for the product is part of our "Fake Restaurant" campaign, in which our advertising agency, Mendelsohn/Zien Advertising, actually built a fake, fine-dining restaurant in which people paid $14 or more for a Hardee's Thickburger. The commercials and additional video content can be viewed on the microsite http://www.FakeRestaurant.com. Hardee's also featured the Chicken Fillet Biscuit during the breakfast daypart," Puzder continued. "As of the end of period five, the trailing 13-period average unit volume at Hardee's was $963,000 a $9,000 per unit increase since the end of fiscal 2008, and the highest figure for the brand since fiscal 1995, which is as far back as we can check. In addition, Hardee's period five average unit volume was higher than any comparable period as far back as we can check." Revenue for period five from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $39.9 million.
For period five, consolidated revenue from company-operated restaurants
(exclusive of all franchise-related revenue and royalties) was approximately
Carl's Jr. $ 48.7 million
Hardee's $ 39.9 million
Total $ 88.6 million
"We will report same-store sales results for period six of fiscal year 2009, ending July 14, 2008, on or about July 23, 2008."
As of the end of its fiscal 2009 first quarter ended May 19, 2008, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,101 franchised, licensed or company-operated restaurants in 42 states and in 13 countries, including 1,162 Carl's Jr. restaurants and 1,923 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.