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CKE Restaurants(R), Inc. Reports Period One Same-Store Sales

By: CKE Restaurants |  2 Shares     125 Reads

CARPINTERIA, Calif.--(BUSINESS WIRE)-- CKE Restaurants, Inc. (NYSE: CKR) announced today period one company-operated same-store sales for the period ended February 22, 2010, for Carl's Jr.® and Hardee's®.

"We've also been working to quickly expand our franchise presence and we recently signed deals in Vietnam for 25 new Carl's Jr. restaurants."

Brand                    Period 1

                  FY 2011        FY 2010

Carl's Jr.        -2.6%          -3.6%

Hardee's          -6.2%          +3.2%

Blended           -4.2%          -0.6%

"The same-store sales trend improved considerably at Carl's Jr. with the start of media advertising in support of the successful Grilled Cheese Bacon Burger, the continued strong sales of the new line of grilled chicken salads and as we lapped over somewhat weaker results in the prior year. However, Hardee's same-store sales were negatively impacted by severe winter weather in several of its core mid-west and southeast markets and by the roll-over of solid results in the prior year," said Andrew F. Puzder, chief executive officer. "We believe Hardee's sales will benefit in the coming months from the launch and advertising campaign for the Grilled Cheese Bacon Burger. Regardless of when the overall economy turns around, we remain steadfastly focused on protecting our brand image for the long run while trying to grow same-store sales in the short run. We will continue to focus on the excellent value-for-the money of our premium products and new initiatives to improve same-store sales and increase market share.

"We've also been working to quickly expand our franchise presence and we recently signed deals in Vietnam for 25 new Carl's Jr. restaurants."

Period One Revenue Trends

For period one, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:

Brand                         Period 1

($ in millions)        FY 2011        FY 2010

Carl's Jr.             $46.0          $46.9

Hardee's               $34.7          $37.0

Total                  $80.7          $83.9

For period one, trailing-13 period average unit volume from company-operated restaurants was as follows:

Brand                          Period 1

($ in thousands)        FY 2011        FY 2010

Carl's Jr.              $1,435         $1,525

Hardee's                $998           $999

Blended                 $1,203         $1,236

Upcoming Communications

The Company will report period two, ending March 22, 2010, same-store sales on or about March 31, 2010 and fourth quarter fiscal 2010 earnings results on or about March 24, 2010.

Safe Harbor Disclosure

Matters discussed in this press release contain forward-looking statements including expectations related to the effect of the Company's future brand strategies, and the impact of the Company's sales and marketing initiatives, on profitability and future operating results and market share and are based on management's current beliefs and assumptions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control. Factors that could cause the Company's results to differ materially from those described include, but are not limited to, the Company's ability to compete with other restaurants, supermarkets and convenience stores; changes in economic conditions which may affect the Company's business and stock price; the effect of restrictive covenants in the Company's credit facility on the Company's business; the Company's ability to attract and retain key personnel; the Company's franchisees' willingness to participate in the Company's strategy; the operational and financial success of the Company's franchisees; changes in consumer preferences and perceptions; changes in the price or availability of commodities; changes in the Company's suppliers' ability to provide quality products to the Company in a timely manner; the effect of the media's reports regarding food-borne illnesses and other health-related issues on the Company's reputation and its ability to obtain products; the seasonality of the Company's operations; increased insurance and/or self-insurance costs; the Company's ability to select appropriate restaurant locations, construct new restaurants, complete remodels of existing restaurants and renew leases with favorable terms; the Company's ability to comply with existing and future health, employment, environmental and other government regulations; 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.

CKE Restaurants, Inc.

Headquartered in Carpinteria, Calif., CKE Restaurants, Inc. is publicly traded on the New York Stock Exchange under the symbol "CKR." As of the end of its fiscal 2010 third quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,147 franchised, licensed or company-operated restaurants in 42 states and in 14 countries, including 1,221 Carl's Jr. restaurants and 1,913 Hardee's restaurants.

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