CKE Restaurants Franchise Reports Positive Period
Posted on: 19/12/2006
Franchises record highest period nine average unit volumes in recent history.
CKE Restaurants, Inc. announced today period nine same-store sales for the four weeks ended Oct. 9, 2006, for Carl's Jr.(R) and Hardee's(R).
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 7.4 percent for period nine. This also marks the 11th consecutive period of positive same-store sales for both Carl's Jr. and Hardee's. We attribute these gains to our continued premium quality strategy, innovative products and effective advertising."
"This period's results also benefited from more favourable sales comparisons over last year due to the economic weakness and elevated gasoline prices experienced in the wake of Hurricane Katrina. However, the recent reductions in gasoline prices and the current strength of our economy should continue to have a positive impact on consumer spending for the foreseeable future. While favourable commodity prices may continue to encourage discounting by our competitors, we believe both of our major brands are capable of generating positive sales results due to our continued emphasis on premium quality menu offerings and superior service."
"Carl's Jr. posted a same-store sales increase of 7.2 percent during period nine, compared to a 1.8 percent decline in the prior year. During the period, Carl's Jr. continued to promote the very popular 'meat-as-a-condiment' Pastrami Burger(TM)," said Puzder. "In addition, Carl's Jr. featured the Smoked Sausage Breakfast Sandwich(TM) during the breakfast daypart. On a two-year cumulative basis, same-store sales at Carl's Jr. have increased nearly 5.5 percent. Average unit volume for period nine was higher than any comparable period nine ever." Revenue for period nine from company-operated Carl's Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $44.0 million.
"Hardee's recorded a 7.6 percent same-store sales increase in period nine versus a 4.5 percent decline in the prior year period. Hardee's promoted the Jalapeno Thickburger(TM) for the full period, and reintroduced the Loaded Breakfast Burrito(TM) to the breakfast menu on Sept. 22," Puzder continued. "On a two-year cumulative basis, Hardee's same-store sales have increased by more than three percent. In addition, Hardee's period nine average unit volume was higher than any comparable period nine since 1994." Revenue for period nine from company-operated Hardee's restaurants (exclusive of franchise-related revenue and royalties) was approximately $50.6 million.
Same-store sales results for period 10 of fiscal year 2007, ending Nov. 6, 2006, will be reported on or about Nov. 15, 2006.
As of the second fiscal quarter ended Aug. 14, 2006, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,131 franchised, licensed or company-operated restaurants in 43 states and in 13 countries, including 1,072 Carl's Jr. restaurants, 1,945 Hardee's restaurants and 98 La Salsa Fresh Mexican Grill restaurants.
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