CARPINTERIA Calif. CKE Restaurants Inc. said Wednesday that harsh winter weather, weak holiday shopping traffic and competitor discounting negatively impacted December sales at its Carl’s Jr. and Hardee’s chains.
CKE’s blended same-store sales for the two chains increased 0.4 percent for the four weeks ended Dec. 29, which was well below the 1.8-percent increase the company has posted so far in its January-ending fiscal year. For the four weeks ended Dec. 29, same-store sales fell 1.6 percent at Carl’s Jr. and rose 3.2 percent at Hardee’s.
“We believe the reduced level of consumer traffic at retail outlets during the holiday shopping season and the continued discounting by many of our competitors as a result of the ongoing weakness in the overall economy negatively impacted both brands’ sales results,” said Andrew Puzder, CKE president and chief executive.
The drop in same-store sales at Carl’s Jr. came despite the Dec. 3 introduction of a new Charbroiled Steak Sandwich. Puzder said rain in Southern California during the month blunted initial consumer trials. Revenue at corporate Carl’s Jr. units for December totaled $49.7 million.
Hardee’s benefited from the continued promotion of its value-priced Little Thickburgers, as well as the new Ham & Three Cheese Breakfast Burrito. Corporate Hardee’s locations posted December revenue of $37.5 million.
CKE is expected to release full results for its fourth quarter ending Jan. 26 on Feb. 4. CKE operates, franchises or licenses 3,110 restaurants including 1,185 Carl’s Jr. units and 1,912 Hardee’s locations.