On CNET: Tech shopping questions. Answered.

CKE Restaurants F1Q09 (Qtr End 5/19/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-06-26 09:52:16.0

Tags: CKE Restaurants Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Brian Moore with Wedbush Morgan. Please proceed.

Brian Moore - Wedbush Morgan

Congratulations on a very good quarter. A question on the P5 same-store sales release, certainly a very impressive acceleration of comps at Hardee's. I’m hoping you can maybe talk to whether you’ve seen a similar trend one week into the launch at Carl's with the Prime Rib burger, as well as maybe talk about the impact of weather, if any, during period five.

Andrew F. Puzder

Well, obviously whether in the Hardee's markets improved in period five. You know, it’s still -- I mean, Sonic came out with a press release I think earlier in the week or in the last week talking about weather conditions and how they impacted Sonic’s restaurants, which really are in a lot of our Hardee's markets. So weather -- I mean, you just have to watch the national news. We do have franchisees in Iowa. We don’t own any restaurants there but we have one franchisee who had a very high average unit volume unit that is simply gone. I mean, the river took it away.

So there are still weather conditions but obviously things have mitigated certainly across the Southeast and in our two principal markets, St. Louis and Indianapolis. Indianapolis is luckily not on a river, and St. Louis is, as you know, on the Mississippi but we haven’t really seen the kind of flooding that we’ve seen north of St. Louis yet.

So weather improved substantially in period five and I think that is, along with the introduction of the Prime Rib Thick Burger, and also a Strawberry Biscuit. We introduced a Strawberry Biscuit at breakfast at Hardee's and that’s been performing very well as well, so those have had a positive impact on our sales and I think that should continue on.

I would love to tell you how we are doing the first week with Prime Rib at Carl's but obviously I can’t. You have to wait another four weeks until we release our period six results, but --

Brian Moore - Wedbush Morgan

I thought I’d try, Andy.

Andrew F. Puzder

Yeah, good try.

Brian Moore - Wedbush Morgan

The success of the Prime Rib product versus some of your past burgers like the Philly Cheesesteak, is it --

Andrew F. Puzder

Well, you know, Philly Cheesesteak was a very successful burger. I am hoping this will meet or exceed those expectations. I think it’s the best burger we’ve ever had. I don’t know if you’ve tried it yet but it’s -- as I actually stuck in what was on it today in the script, even though I really didn’t need to, just because I wanted to get it out there, it’s an incredible burger. It’s delicious.

TalkbackShare your ideas and expertise on this topic
What do you think?
The following tags are supported in BNET comments: <b></b> <i></i> <u></u> <pre></pre>
You are currently a guest | Login?
advertisement
Recommended Business Articles
advertisement