The Hardee's chain has less aggressive growth plans right now, as CKE is renovating those restaurants and adding its Red Burrito Mexican concept to those units. For the full fiscal year, there are 18 to 20 new Carl's Jr. stores planned and just six to eight Hardee's.
To date CKE has renovated 133 Carl's Jr. locations, or one third of its total number of company-owned units. Franchisees own about 720 additional Carl's Jr. locations, mainly in West Coast markets. The company has renovated 63 Hardee's, or 11% of its company-owned total. Franchisees operate some 1,300 additional Hardee's units across the country.
Same-store sales at Carl's Jr. rose 0.7% year over year during the quarter. Puzder says sales might have negatively been impacted by a commercial protested by teachers that shows an educator dancing suggestively in front of students.
At Hardee's, same-stores sales rose 2.7%. Total revenues for both chains came in at $351.6 million, down 0.8% from the same year-ago period, while net income fell to $6.2 million from $9.5 million.
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