CKE Restaurants, Inc. Reports Period Three Same-Store Sales

CKE Restaurants, Inc. (NYSE: CKR) announced today period three same-store sales for the four weeks ended April 20, 2009, for Carl's Jr.(R) and Hardee's(R).



'I am pleased with the progress our Hardee's brand made, as same-store sales increased 3.6 percent in the third period - marking the twelfth consecutive period that Hardee's has delivered positive same-store sales despite a very challenging economy,' said Andrew F. Puzder, chief executive officer. 'Our premium product strategy, our successful execution of Hardee's remodeling program, as well as our aggressive customer service improvement campaign fueled this improvement. Hardee's continued to improve its trailing-13 period average unit volume in period three, reaching $1,009,000, which was up $5,000 from last period and up $50,000 from period three last year. During the period Hardee's featured its Western Bacon Thickburger(R) with Beer Battered Onion Rings, supported by a provocative ad featuring Top Chef's Padma Lakshmi. Hardee's also featured the Texas Toast Breakfast Sandwiches and continued to promote its ¼ pound Little Thickburger(R).

'While same-store sales at Carl's Jr. were down 3.6 percent for the third period, they improved by 340 basis points from period two's same-store sales decline of 7.0 percent. As stated previously, we are working to return Carl's Jr. to positive territory but will not resort to product-degrading and profit-eroding discounting to do so. California's economy, where unemployment rates continue to soar is hindering this progress. Nonetheless, we are making progress. Carl's Jr.'s two-year same-store sales trend continued to improve in period three as Carl's Jr. achieved a modest gain of 0.2 percent, compared to a decline of 1.0 percent for period two and a decline of 2.2 percent for period one.

'Carl's Jr.'s trailing-13 period average unit volume was $1,514,000 in period three, up from $1,509,000 for the same period last year. During the period, Carl's Jr. continued its industry leading product innovations with the roll-out of the Kentucky Bourbon Burger(TM) and the Green Burrito(R) Crisp Burritos. While many of our competitors are capitulating to massive discounting practices, we are managing our business for the long term, offering select budget items, while maintaining our premium product positioning.

'Carl's Jr.'s same-store sales, excluding the negative impact of Easter traffic, improved throughout the period, partially due to our moving further away from the roll over of the highly successful Chili Cheese Burger and Chili Cheese Fries promotion from last year and partially due to our return to a premium burger product.'

For period three, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:



'Despite the challenging economy, period three company-operated restaurants revenue held fairly solid on a year-over-year basis,' Puzder concluded. 'Carl's Jr. delivered relatively flat revenues, primarily attributable to negative same store sales offset by revenue from new units. The decline at Hardee's resulted primarily from the refranchising of our restaurants during the prior fiscal year.'

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