CARPINTERIA, Calif. Poor economic conditions in California continued to take a toll on the Carl’s Jr. chain during April, while sister brand Hardee’s showed stronger sales trends, CKE Restaurants Inc. said Wednesday.
For the four weeks ended April 19, Carl’s Jr.’s same-store sales dropped 8.7 percent, compared with a 3.6-percent decline the same time last year.
Andrew Puzder, CKE’s chief executive, blamed the difficult economic climate and high unemployment rates in California, a core market for the 1,224-unit Carl’s Jr.
“We continue to focus on the excellent value-for-the-money of our premium products and combo meals, and have several new initiatives in the works to improve same-store sales and increase market share,” he said.
Hardee’s, however, reported a same-store sales increase of 0.3 percent, compared with a year-ago increase of 3.6 percent. Puzder credited continuing sales of the Grilled Cheese Bacon Thickburger and two new biscuit items. Hardee’s 1,905 locations are primarily in the Midwest and Southeast.
Blended same-store sales showed a decline of 4.8 percent for the period, compared with a 0.5-percent drop a year ago.
Earlier this week, CKE accepted a buyout deal valued at $1 billion from an affiliate of Apollo Global Management. The deal with Columbia Lake Acquisition Holdings Inc. included a cash offer of $12.55 per share and the refinancing of CKE’s debt. Contingent on shareholder and regulatory approval, the company expects the transaction to close by the end of the second quarter.
Contact Lisa Jennings at [email protected].
