CKE Restaurants April Same-store Sales Drop 3.5% - Update

Quick-service restaurant chain operator CKE Restaurants, Inc. (CKR), Wednesday reported a 3.5% drop in its same-store sales for the four-weeks ended May 18, 2009.

The Carpinteria, California-based company's blended same-store sales for the month of April dropped 3.5%, compared to a 1.8% rise in the previous year period. Same-store sales at Hardee's for the period were breakeven, compared to a 1.0% drop last year. Carl's Jr. same-store sales for the four-week period declined 6.2%, compared to an increase of 4.2% in the same period of last year.

Consolidated revenue from company-operated restaurants for April decreased to $84.9 million from $88.2 million last year. Revenue at Hardee's declined to $38.1 million, while at Carl's Jr. revenue decreased to $46.8 million from the previous-year period.

For the first quarter, the company's blended same-stores sales declined 1.8%, compared to a 1.8% increase in the prior-year quarter. Same-store sales at Hardee's rose 2.5%, compared to a 0.6% drop last year, while same-store sales at Carl's Jr. were down 5.1%, compared to a rise of 3.9% in the year-ago quarter.

Total consolidated revenue for the first quarter decreased to $343.1 million from $358.2 million in the corresponding quarter of last year.

Looking forward to the first quarter of fiscal year 2010, the company anticipates restaurant-operating expenses as a percentage of company-operated restaurants revenue to be essentially flat with the first quarter of fiscal 2009, which was 80.0%.

The company is slated to report its first quarter earnings and period five same-store sales results for fiscal year 2010 on or about June 24, 2009.

CKR is currently trading at $8.59, down $0.21 or 2.39%, on a volume of 0.27 million shares on the NYSE.

by RTTNews Staff Writer

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