Carl's Jr parent CKE same-store sales fall 2.7 pct

Wed Apr 1, 2009 8:40am EDT
 
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April 1 (Reuters) - CKE Restaurants Inc (CKR.N) posted a 2.7 percent drop in monthly same-store sales on Wednesday, citing weak demand at its Carl's Jr chain and deep discounting by rivals.

Same-store sales fell 7 percent at Carl's Jr in the four weeks ended on March 23, while rising 3.1 percent at the Hardee's chain.

"We are working diligently to get Carl's Jr. back on the positive same-store sales track to which we are accustomed although the poor condition of the California economy, which is worse than most other states, makes growing sales particularly difficult at this time," Chief Executive Andrew Puzder said in a statement.

Larger hamburger chains have been promoting low-cost items, such as the Dollar Menu at McDonald's Corp (MCD.N), to appeal to consumers looking for less-expensive alternatives.

To attract cash-strapped consumers, Carl's Jr introduced the Kentucky Bourbon Burger on March 11 and brought back its Jumbo Chili Dogs hot dog offering. CKE shares closed at $8.40 in Tuesday New York Stock Exchange trade.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Lisa Von Ahn)

((dhanya.skariachan@thomsonreuters.com; Reuters messaging: dhanya.skariachan.reuters.com@reuters.net; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800)) Keywords: CKERESTAURANTS/

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