CKE 1Q Same-store Sales Fall 1.8 Percent

CARPINTERIA, Calif. (AP) — CKE Restaurants Inc., which operates the Hardee's and Carl's Jr. hamburger chains, said Wednesday its same-store sales fell 1.8 percent in its fiscal first quarter.

The Carpinteria, Calif., company said sales at established locations dropped 5.1 percent at Carl's Jr. but rose 2.5 percent at Hardee's.

Carl's Jr. has struggled lately due to its slightly higher prices.

The company said it will attempt to draw more attention to its lower-priced products without "resorting to margin-eroding deep discounting practices."

Overall revenue for company-owned locations in the first quarter fell to $343.1 million from $358.2 million, the company said.

For the four-week period ended May 18, blended same-store sales fell 3.5 percent, with same-store sales dipping 6.2 percent at Carl's Jr. and staying flat at Hardee's.

CKE blamed poor weather for the flat same-store sales at Hardee's and high unemployment in California for the Carl's Jr. decline. About 87 percent of the company's Carl's Jr. restaurants are located in the state.

The company also said year-over-year costs for potatoes, pork, chicken and soft drink syrups rose in the quarter, but CKE said it was able to offset those increases with favorable costs for cheese, oil, produce, bakery items and beef.

The company plans to report its full first-quarter results on or about June 24.