September Sales Fall at CKE Restaurants

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California’s struggling economy continues to hurt same-store sales at Carl’s Jr. fast food restaurants, chain owner CKE Restaurants Inc. said Wednesday.

The Carpinteria restaurant company experienced a 3.3 percent decline in the same-store sales for all of its company-owned restaurants in the four weeks ended Oct. 5. The decline was led by the Carl’s Jr. restaurants, where sales decreased 5.5 percent, while sister chain Hardee’s only saw a 0.6 percent sales decrease.

Carl’s Jr. restaurants are located on the West Coast, with Hardee’s focusing on the southern and midwestern regions of the United States. CKE Chief Executive Andrew Puzder blamed the declines on the economy.

“In particular, record levels of California’s unemployment exceeding 12 percent, and 18 percent for the broader unofficial statistic, have negatively influenced consumers’ buying habits,” said Puzder, in a statement. “Although sales of Big Carl and Big Hardee (sandwiches) have been strong, they have not yet offset the loss of ala carte side dishes, drinks and combo sales.”

Total consolidated revenue from company-operated restaurants was down 2.5 percent to $82.3 million.

Looking ahead, the company said it would remain focused on marketing its big, premium burgers while limiting discounting, both of which have the added benefit of protecting profit margins.

CKE shares closed down 22 cents, or 2 percent, to $10.22 on the New York Stock Exchange.

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