Restaurant chain CKE Restaurants Inc. (CKR) Wednesday reported a 5.4% decline in blended same-store sales for Period 10 compared with an increase of 1.0% in the prior-year period, impacted negatively by increased unemployment rates as well as higher competition.
Same store sales of Carl's Jr. declined 7% for period 10 compared with nil last year. Hardee's same-store-sales for period ten dropped 3.4%, compared with a 2.1% increase a year ago.
For period 10, trailing-13 period average unit volume from company-operated restaurants totaled $1.22 million, in line with the previous year: Carl's Jr. was $1.47 million, compared with $1.53 million and Hardee's was $1.00 million versus $982 thousand in the comparable period.
The Carpinteria, California-based restaurant chain's total revenues for period 10 were $80.9 million, lower than $85.3 million in the prior year. Revenues from Carl's Jr. brand for period 10 declined to $44.4 million from $46.8 million, and revenues from Hardee's brand were $36.5 million, down from $38.5 million in the previous year.
Blended same-store sales for the third quarter decreased 3.7% versus an increase of 0.9% in the year-ago period. Total revenues for the third-quarter were $246.6 million, lower than $255.5 million in the same quarter of 2009. Carl's Jr. revenues for the third quarter were $136.7 million, down from $140.3 million in the earlier period. Hardee's revenues for the quarter decreased to $109.9 million from $115.2 million a year ago.
Year-to-date, blended same-store sales slid 3.3%, compared with an increase of 2.1% in the year-ago period. Year-to-date, total revenues dropped to $847.5 million from $880.6 million in the prior year.
Commenting on the results, chief executive officer Andrew Puzder said, "Unemployment rates have continued to worsen while our competitors have escalated the deep discount burger wars. Both of these events are having an adverse impact on same-store sales results for everyone including us."
On a consolidated basis, third quarter restaurant level margin as a percentage of company-operated restaurants revenue is expected to increase in a range of 18.0% to 18.3%, compared compared to the third quarter of fiscal 2009, when consolidated restaurant level margin was 17.9%.
In the prior-year third quarter, the company recorded about $1.5 million in franchise income related to refranchising activity and collection of previously unrecognized amounts from financially troubled franchisees. CKE Restaurants said it does not expect these payments to recur in the third quarter of fiscal 2010.
The company expects interest expense for the third quarter to be approximately $6.4 million, including interest paid on its term loan and revolving credit facility, as well as an estimated $3.6 million unfavorable adjustment to mark-to-market the company's interest rate swap agreements.
The company said it will report period eleven same-store sales and third quarter earnings results on or about December 8, 2009.
CKR closed Tuesday's regular trading at $9.31 per share on the New York Stock Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.