CARPINTERIA Calif. The Midwest-based Hardee's chain saw same-store sales turn positive in March for the first time in almost a year, though sister brand Carl's Jr. continued to suffer in its hard-hit core market of California, CKE Restaurants Inc. reported Wednesday.
For the four weeks ended March 22, same-store sales at Hardee's company-owned units increased 0.5 percent, compared with an increase of 3.1 percent for the same period last year. The chain hasn't reported positive same-store sales numbers since April last year, when the recession began to take its toll on the quick-service brand.
For Carl's Jr.'s company-owned units in March, however, same-store sales dropped 7.6 percent, compared with a 7.0-percent drop a year ago. As a result, parent company CKE's blended same-store sales were down 4.1 percent in March.
Revenue for company-operated stores in March dipped about 6.7 percent at Carl's Jr. to $45.9 million from $49.2 million during the same period last year. At Hardee's, revenue was roughly flat, totaling $37.7 million in March, compared with $37.6 million a year ago.
Andrew Puzder, CKE's chief executive, said improved weather in the Midwest and promotion of the Grilled Cheese Bacon Thickburger at Hardee's helped improve sales trends.
Carl's Jr., however, continues to be "negatively impacted by the poor economic conditions and high unemployment rates in our core California market," Puzder said.
"Regardless of when the overall economy turns around, we remain steadfastly focused on protecting our brand image for the long run while trying to grow same-store sales in the short run," Puzder said. "We will continue to focus on the excellent value-for-the-money of our premium products and new initiatives to improve same-store sales and increase market share."
In February, CKE said it had agreed to a $928 million buyout by Boston-based private-equity firm Thomas H. Lee Partners. The Carpinteria, Calif.-based CKE has said it will consider other bids until April 6.
CKE operates, licenses or franchises 1,224 Carl's Jr. and 1,905 Hardee's locations in 42 states and 16 countries.
Contact Lisa Jennings at [email protected].
