CARPINTERIA Calif. The drag on same-store sales for CKE Restaurants Inc. chains Carl’s Jr. and Hardee’s worsened in January, in part because of bad weather, the company said Wednesday.
For the four weeks ended Jan. 25, and the final month of the company’s 2010 fiscal year, same-store sales fell 9 percent at Carl’s Jr. and 2.8 percent at Hardee’s.
For the full fourth quarter, also ended Jan. 25, Carl’s Jr. same-store sales fell 8.7 percent and Hardee’s comps fell 2.5 percent.
“Same-store sales remained weak in the final period of our fiscal 2010 with no real improvement in the overall economy or the unemployment rates in the markets we serve, and with the deep-discount burger wars continuing during the traditionally slow winter months,” said Andrew Puzder, CKE’s chief executive.
“Both brands’ results were also significantly impacted by worse weather this year than in the prior year,” he added, noting heavy rains in the core Southern California markets of Carl’s Jr. and severe winter weather in Hardee’s Midwestern and Southeastern markets.
Total revenue at corporate restaurants totaled $74 million in January, down from $78.4 million last year. For the fourth quarter, revenue totaled $236.8 million, down 5.4 percent from $250.4 million for the fourth quarter in fiscal 2009.
Puzder said he was “proud of [the company’s] profitability,” given the state of the U.S. economy, and pledged to continue its focus on premium products. A full earnings report for the fourth quarter is scheduled for March 24.
New Carl’s Jr. products include the “ultimate comfort food,” a Grilled Cheese Bacon Burger introduced last week. At Hardee’s, recent new items included a Double Sausage Egg ‘N’ Cheese Biscuit at breakfast, and the Jalapeno Chicken Sandwich or Thickburger at lunch and dinner.
Based in Carpinteria, Calif., CKE Restaurants operates or franchises 1,221 Carl’s Jr., and 1,913 Hardee’s locations.
Contact Lisa Jennings at [email protected].