Same-Store Sales Down at CKE Restaurants
CKE Restaurants Inc. reports period nine same-store sales.
-- Chain Leader, 10/14/2009 8:29:00 AM
PRESS RELEASE: CARPINTERIA, Calif.--(BUSINESS WIRE)--CKE Restaurants, Inc. (NYSE: CKR) announced today period nine company-operated same-store sales for the period ended October 5, 2009, for Carl’s Jr.® and Hardee’s®.
| Brand | Period 9 | Year to Date | ||||||||||||||||
| FY 2010 | FY 2009 | FY 2010 | FY 2009 | |||||||||||||||
| Carl’s Jr. | -5.5 | % | 1.6 | % | -5.3 | % | 3.2 | % | ||||||||||
| Hardee’s | -0.6 | % | 0.8 | % | -0.1 | % | 1.0 | % | ||||||||||
| Blended | -3.3 | % | 1.2 | % | -3.1 | % | 2.2 | % | ||||||||||
“While Hardee’s continues to show improvement in company-owned same-store sales, the further weakening of California’s economy continued to impact Carl’s Jr.,” said Andrew F. Puzder, Chief Executive Officer. “In particular, record levels of California’s unemployment exceeding 12%, and 18% for the broader unofficial statistic, have negatively influenced consumers’ buying habits. No doubt, this situation is also driving the increase in aggressive 99-cent discount promotions by our competitors.
“Although sales of The Big CarlTM and The Big HardeeTM have been strong, they have not yet offset the loss of ala carte side dishes, drinks and combo sales and we are still not happy with the results at Carl’s Jr. The best way to position ourselves for an economic recovery is to maintain our brand image and integrity. To do that, we will remain focused on our big, premium burgers while limiting our discounting, both of which have the added benefit of protecting profit margins.”
Period Nine Revenue Trends
For period nine, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:
| Brand | Period 9 | Year to Date | ||||||||||||||||
| ($ in millions) | FY 2010 | FY 2009 | FY 2010 | FY 2009 | ||||||||||||||
| Carl’s Jr. | $ | 45.3 | $ | 46.4 | $ | 427.9 | $ | 435.8 | ||||||||||
| Hardee’s | $ | 37.0 | $ | 38.0 | $ | 338.7 | $ | 359.5 | ||||||||||
| Total | $ | 82.3 | $ | 84.4 | $ | 766.6 | $ | 795.3 | ||||||||||
For period nine, trailing-13 period average unit volume from company-operated restaurants was as follows:
| Brand | Period 9 | |||||||||
| ($ in thousands) | FY 2010 | FY 2009 | ||||||||
| Carl’s Jr. | $ | 1,476 | $ | 1,529 | ||||||
| Hardee’s | $ | 1,006 | $ | 978 | ||||||
| Blended | $ | 1,225 | $ | 1,216 | ||||||
Upcoming Communications
The Company will report period ten same-store sales results on or about November 11, 2009.
Safe Harbor Disclosure
Matters discussed in this press release contain forward-looking statements including expectations relating to future brand strategies and discount pricing impact on profitability 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 second quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,140 franchised, licensed or company-operated restaurants in 42 states and in 14 countries, including 1,212 Carl's Jr. restaurants and 1,915 Hardee's restaurants. For more information about CKE Restaurants, please visit www.ckr.com.
