CKE Restaurants, Inc. Reports Positive Period Six Blended Same-Store Sales
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CARPINTERIA, Calif., July 22 /PRNewswire-FirstCall/ -- CKE Restaurants,
Inc. (NYSE: CKR) announced today period six same-store sales for the four
weeks ended July 14, 2008, for Carl's Jr.(R) and Hardee's(R).
Brand Period 6 Year to Date
FY 2009 FY 2008 FY 2009 FY 2008
Carl's Jr. +4.9% +3.1% +3.8% +1.0%
Hardee's +5.7% +1.1% +1.0% +1.8%
Blended +5.2% +2.1% +2.5% +1.4%
Commenting on the Company's performance, Andrew F. Puzder, president and
chief executive officer, said, "We are very pleased to report positive blended
same-store sales of 5.2 percent for period six of fiscal 2009 and 2.5 percent
for the year to date. On a two year basis, blended same-store sales for period
six were up 7.3 percent. As of the end of period six, our blended average unit
volume for our company-operated stores was $1,200,000, a $38,000 increase from
the end of fiscal 2008."
"We believe these results support our belief that consumers still desire
innovative, premium quality products -- even in a challenging economy -- and
that we can still redefine value perceptions in relation to sit-down
restaurant fare rather than merely with low prices and inferior quality
products."
"During the period, both brands featured the distinctively premium quality
and premium priced Prime Rib Burger. In fact, this is our highest priced Six
Dollar Burger(TM) or Thickburger(R) to date. Our latest 'meat-as-a-condiment'
creation is made 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. "The advertising for
the product is part of our 'Fake Restaurant' campaign, in which people
willingly paid $14 or more for a variety of Carl's Jr. Six Dollar Burgers and
Hardee's Thickburgers. The commercials and additional video content can be
viewed on the microsite http://www.FakeRestaurant.com."
"Carl's Jr. achieved a 4.9 percent same store sales increase over
positive same store sales of 3.1 percent last year for a two year cumulative
increase of 8.0 percent. We began selling the Prime Rib Burger on June 18, the
second day of the period. In addition, Carl's Jr. introduced Natural Cut
French Fries on July 2. These thicker fries with the potato skin left on them
mirror the kind of premium-quality fries found at sit-down restaurants," said
Puzder. "Carl's Jr. also promoted the Jalapeno Chicken Sandwich and Chili
Cheese Fries during the period. As of the end of period six, the trailing
13-period average unit volume at Carl's Jr. was $1,523,000, a $29,000 per unit
increase since the end of fiscal 2008 and an all-time high for the brand. In
addition, our period six average unit volume for Carl's Jr. was higher than
any comparable period six ever." Revenue for period six from company-operated
Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties)
was approximately $49.4 million.
"Hardee's same-store sales increased 5.7 percent versus positive
same-store sales of 1.1 percent last year for a two year cumulative increase
of 6.8 percent. In addition to the Prime Rib Thickburger(R), Hardee's promoted
the Red Burrito Taco Salad(TM) during the period," Puzder continued. "Hardee's
also debuted the delicious Strawberry Biscuits during the breakfast daypart on
June 17, the first day of period six. Sliced strawberries and strawberry syrup
are ladled onto our Made from Scratch buttermilk biscuits with icing drizzled
on top," added Puzder. As of the end of period six, the trailing 13-period
average unit volume at Hardee's was $970,000 a $16,000 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 six
average unit volume was higher than any comparable period as far back as we
can check." Revenue for period six from company-operated Hardee's restaurants
(exclusive of franchise-related revenue and royalties) was approximately
$40.0 million.
For period six, consolidated revenue from company-operated restaurants
(exclusive of all franchise-related revenue and royalties) was approximately
as follows:
Carl's Jr. $49.4 million
Hardee's $40.0 million
Total $89.4 million
"We will report same-store sales results for period seven of fiscal year
2009, ending Aug. 11, 2008, on or about Aug. 20, 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 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.
John Beisler, Vice President - Investor Relations of CKE Restaurants, Inc.,
+1-805-745-7750
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