CKE Restaurants, Inc. Reports Positive Period 11 Blended Same-Store Sales
Carpinteria, Calif.--(BUSINESS WIRE)-- CKE Restaurants, Inc. (NYSE: CKR) announced today period 11 same-store sales for the four weeks ended Dec. 1, 2008, for Carl's Jr.(R) and Hardee's(R).
Brand Period 11 Year to Date
FY 2009 FY 2008 FY 2009 FY 2008
Carl's Jr. +0.1% +2.5% +2.6% +1.0%
Hardee's +0.5% +3.2% +1.1% +2.5%
Blended +0.3% +2.8% +1.9% +1.7%
Commenting on the Company's performance, Andrew F. Puzder, president and chief executive officer, said, "Blended same-store sales increased 0.3 percent for period 11 of fiscal 2009. We believe the ongoing weakness in the overall economy as well as continued discounting by many of our competitors negatively impacted both brands' sales results. Sales were also modestly adversely impacted by the later Thanksgiving holiday this year. Specifically, the Thanksgiving holiday fell in the last week of the month and the period this year versus the third week of the month and the period last year. Generally speaking, this meant that we didn't have the advantage of a post-Thanksgiving, holiday-shopping week in the period this year, and those have historically been higher-volume sales weeks. On a two year cumulative basis, blended same-store sales have increased 3.1 percent. For the fiscal year to date, blended same-store sales have increased 1.9 percent. As of the end of period 11, our blended average unit volume for our company-operated stores was $1,225,000, a $63,000 increase from the end of fiscal 2008.
"Carl's Jr. reported a same-store sales increase of 0.1 percent for period 11, versus a 2.5 percent increase in the prior year period. Last year's sales benefited from the successful Portobello Mushroom Six Dollar Burger promotion. In the most recent period, Carl's Jr. featured its line of Guacamole Bacon burgers. We prepare our guacamole in store daily and include fresh salsa. The Guacamole Bacon Six Dollar Burger features a charbroiled, 100 percent Black Angus beef patty topped with guacamole, two strips of bacon, two slices of pepper-Jack cheese, Santa Fe sauce, red onions, tomato and lettuce on a seeded bun. Guests can also order the burger on a single or double beef patty platform. Two days after the end of period 11, Carl's Jr. introduced the Charbroiled Steak Sandwich," Puzder continued. "Carl's Jr. also promoted the Big Country Breakfast Burrito during the breakfast daypart, the latest addition to the 'Breakfast as Big as our Burgers' campaign," said Puzder. "As of the end of period 11, the trailing 13-period average unit volume at Carl's Jr. was $1,529,000, a $36,000 per unit increase since the end of fiscal 2008 and an all-time high for the brand.
"Hardee's same-store sales increased 0.5 percent versus positive same-store sales of 3.2 percent last year for a two year cumulative increase of 3.7 percent. During the period, Hardee's promoted Little Thickburgers, a quarter-pound sized version of both our standard one-third pound Thickburger(R) and our Cheese Thickburger. With a starting suggested retail price of $1.99 for the Little Cheese Thickburger, the burger's smaller size and price appeals to those consumers who consider our original Thickburgers too big or too expensive in the current economic environment," Puzder continued. "During the breakfast daypart, Hardee's featured the Pork Chop 'N' Gravy Biscuit. We top a boneless, breaded pork chop with our popular sausage gravy on one of our Made From ScratchTM buttermilk biscuits," added Puzder. "As of the end of period 11, the trailing 13-period average unit volume at Hardee's was $985,000, a $32,000 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 11 average unit volume was higher than any comparable period as far back as we can check."
For period 11, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:
Carl's Jr. $ 47.4 million
Hardee's $ 37.3 million
Total $ 84.7 million
"We will report same-store sales results for period 12 of fiscal year 2009, ending Dec. 29, 2008, on or about Jan. 7, 2009."
As of the end of its fiscal 2009 third quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,110 franchised, licensed or company-operated restaurants in 42 states and in 14 countries, including 1,185 Carl's Jr. restaurants and 1,912 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.