CKE Restaurants, Inc. Reports Positive Period Eight Blended Same-Store Sales
CARPINTERIA, Calif., Sept. 17 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today period eight same-store sales for the four weeks ended Sept. 8, 2008, for Carl's Jr.(R) and Hardee's(R).
Brand Period 8 Year to Date
FY 2009 FY 2008 FY 2009 FY 2008
Carl's Jr. -0.1% +1.2% +3.4% +0.9%
Hardee's +1.1% +3.5% +1.0% +2.4%
Blended +0.4% +2.3% +2.3% +1.7%
Commenting on the Company's performance, Andrew F. Puzder, president and chief executive officer, said, "Blended same-store sales increased 0.4 percent for period eight of fiscal 2009 and increased 2.7 percent on a two-year basis. We believe both brands' sales results were tempered by competitors' aggressive discounting and literal giveaways, a tactic our company declined to employ because of its negative impact on margins for both company-owned restaurants and franchisees. This resulted in a decline in sales of our lower margin value products. Certain Hardee's markets were also impacted by the remnants of Hurricanes Gustav and Hanna and Tropical Storm Fay which rolled through the Midwest and Southeast during the period. Carl's Jr.'s sales were also impacted by a reduction in the number of units remodeled this year as compared to the same period last year. For the fiscal year to date, same-store sales increased 2.3 percent. As of the end of period eight, our blended average unit volume for our company-operated stores was $1,211,000, a $49,000 increase from the end of fiscal 2008."
"Carl's Jr. reported essentially flat same-store sales over positive same store sales of 1.2 percent in the prior year period. During the period, Carl's Jr. featured the distinctive Prime Rib Burger(TM), the latest of our 'meat-as-a-condiment' creations. We make The Six Dollar Burger(TM) variety by topping a charbroiled, 100 percent Black Angus beef patty with thinly-sliced prime rib, horseradish sauce, Swiss cheese, and grilled onions all on a toasted Ciabatta roll," Puzder continued. "Carl's Jr. also promoted the Jalapeno Chicken Sandwich as well as the Monster Breakfast Sandwich(TM) during the breakfast daypart," said Puzder. "As of the end of period eight, the trailing 13-period average unit volume at Carl's Jr. was $1,527,000, a $34,000 per unit increase since the end of fiscal 2008 and an all-time high for the brand."
"Hardee's same-store sales increased 1.1 percent versus positive same-store sales of 3.5 percent last year for a two year cumulative increase of 4.6 percent. During the period, Hardee's reintroduced a long-time guest favorite, the Frisco Thickburger(R), on Aug. 25. The burger features a one-third pound, charbroiled, 100 percent Black Angus beef patty topped with two slices of Swiss cheese, two strips of crispy bacon, sliced fresh tomato, and mayonnaise, all on buttered and grilled sourdough bread spread," Puzder continued. "Hardee's also featured Strawberry Biscuits during the breakfast daypart. We top our Made From Scratch(TM) buttermilk biscuits with sliced strawberries in strawberry syrup, then drizzle them with icing," added Puzder. "As of the end of period eight, the trailing 13-period average unit volume at Hardee's was $976,000 a $22,000 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 eight average unit volume was higher than any comparable period as far back as we can check."
For period eight, consolidated revenue from company-operated restaurants
(exclusive of all franchise-related revenue and royalties) was approximately
Carl's Jr. $ 47.1 million
Hardee's $ 38.7 million
Total $ 85.8 million
"We will report same-store sales results for period nine of fiscal year 2009, ending Oct. 6, 2008, on or about Oct. 15, 2008."
As of the end of its fiscal 2009 second quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,100 franchised, licensed or company-operated restaurants in 42 states and in 14 countries, including 1,170 Carl's Jr. restaurants and 1,917 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.