Blended same-store sales down .6% at CKE
March 04, 2009
by FoodBusinessNews.net Staff
CARPINTERIA, CALIF. — For the four weeks ended Feb. 23, CKE Restaurants, Inc. posted blended same-store sales decreased 0.6% compared with an increase of 1.5% during the previous year.
"We believe the ongoing efforts of our competitors to drive sales by offering low-quality discounted menu items negatively impacted sales at both brands," said Andrew F. Puzder, president of CKE. "This tactic has been exacerbated in recent weeks by certain brands actually giving their food away. We have declined to participate in this tactic, focusing instead on offering premium quality products and maintaining the profitability of our brands. We believe our competitors will be unable to maintain this level of discounting long term as it has already severely impacted the margins at a number of brands."
Carl’s Jr. had same-store sales decrease 3.6%, but Hardee’s saw same-stores sales increase 3.2%.
"We anticipate the current economic crisis and our competitors’ deep discounting will continue to impact sales and profits across our industry," Mr. Puzder said. "To address these issues, we will place renewed emphasis on our consumers’ economic concerns by stressing in our new products and in our cutting-edge advertising the value of our premium products, particularly as compared to casual dining far, rather than stressing low prices alone."