Same-Store Sales Fall at CKE

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Fast food operator CKE Restaurants Inc. said Wednesday that its combined same-store sales dropped 5 percent for the four-week period ended July 13 as the recession continued to dampen consumer’s eating-out activity.

The Carpinteria owner of the Hardee’s and Carl’s Jr. chains said same-store sales, or sales at stores open at least a year, fell 6.1 percent at Carl’s Jr. and 3.6 percent at Hardee’s. The restaurant operator said it faced difficult comparisons, as some consumers used their government stimulus checks last summer to eat out.

“While not an excuse, both brands are rolling over very difficult same-store sales comparisons from the prior year,” Chief Executive Andrew Puzder said in a statement. Our management team is working diligently to bring same-store sales back to positive territory, while staying focused on maintaining our brand image, consumer perceptions regarding the taste and quality of our products, as well as our profitability.”

Total revenue declined 3 percent $86.4 million, hurt by the same-store sales drop-off and the refranchising of Hardee’s restaurants during the prior fiscal year. Year to date, same-store sales are down 5.6 percent drop at Carl’s Jr. with a 0.5 percent gain at Hardee’s.

CKE shares were down 29 cents, or 3 percent, to $9.15 in midday trading on the New York Stock Exchange.



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