CKR - The Tale of Two concepts

CKE reported consolidates same-store sales increased 1.8% percent in May. Looking at the 2-year trends, consolidated basis same store sales slowed by 110 bps. Carl's Jr. same-store sales improved 4.2%, while Hardee's same-store sales declined 1% percent. Period 4 represented the third straight month of declining same-store sales for Hardee's.
  • Hardee's - the three consecutive months of declining same-store sales are now a trend.It's clear that management needs to reconsider the growth capital being allocated to the Hardee's concept.