CARPINTERIA Calif. While CKE Restaurants Inc. officials said that sales of the new Big Mac-taunting burgers at its Carl’s Jr. and Hardee’s chains were strong in September, they were not enough to overpower the weak economic climate in California.
Blended same-store sales for corporate units within both the Carl’s Jr. and Hardee’s chains fell 3.3 percent for the four weeks ended Oct. 5, the company reported Wednesday.
Corporate same-store sales fell 5.5 percent at Carl’s Jr., compared with an increase of 1.6 percent for the same four weeks last year. Hardee’s reported a more modest 0.6-percent decline for its corporate units, compared with a 0.8-percent increase a year ago.
Last month, CKE introduced “The Big Carl” and “The Big Hardee” at Carl’s Jr. and Hardee’s, respectively, with both sandwiches promising more meat, more cheese and a lower price than rival McDonald’s Big Mac.
“Although sales of The Big Carl and The Big Hardee have been strong, they have not yet offset the loss of a la carte side dishes, drinks and combo sales and we are still not happy with the results at Carl’s Jr.,” said Andrew Puzder, CKE Restaurants chief executive.
He also noted that the 12-percent-plus unemployment rate in California, which serves as Carl’s Jr.’s core market, as well as aggressive 99-cent discount promotions by competitors, hurt sales.
“The best way to position ourselves for an economic recovery is to maintain our brand image and integrity,” Puzder said. “To do that, we will remain focused on our big, premium burgers while limiting our discounting, both of which will have the added benefit of protecting profit margins.”
Revenue for the four weeks totaled $82.3 million, reflecting $45.3 million for Carl’s Jr., down 2.4 percent from a year ago, and $37 million for Hardee’s, down 2.6 percent.
Carpinteria, Calif.-based CKE Restaurants operators or franchises 1,212 Carl’s Jr. and 1,915 Hardee’s restaurants in 42 states and 14 countries.
Contact Lisa Jennings at [email protected].