Hardee’s Sales Will Drop for Rest of ‘98, CKE Says

CKE Restaurants Inc., an operator of fast-food chains, said sales at its Hardee’s stores open at least a year will decline for the rest of the year as it struggles to revive consumer interest in its hamburger and chicken-sandwich lunch and dinner menus.

These same-store sales, an important business barometer, are expected to fall about 7% in the fiscal third quarter and about 2% in the fourth quarter, said C. Thomas Thompson, president and chief operating officer, at a BancBoston Robertson Stephens retail conference in New York.

The company’s stock, which has dropped nearly 50% this year, fell $1.38 a share Thursday to $19.25, after hitting a 52-week low of $18.50 earlier in the session. Trading totaled 1.73 million shares, more than triple the average daily volume over the last three months.

Anaheim-based CKE is reducing labor costs and profit-eroding discounts at Hardee’s even as it pumps about $100 million into advertising to get the chain’s loyal breakfast customers to come back for lunch and dinner instead of eating at rivals such as Wendy’s International Inc. “Breakfast is the foundation to build on,” Thompson said.

j Same-store sales at Hardee’s, CKE’s largest chain with almost 3,000 locations, have been declining since CKE bought the chain last year. Last year, sales fell 6.7% in the third quarter and 9.3% in the fourth quarter, Thompson said. CKE’s fiscal year ends in January.

CKE, which also operates 745 Carl’s Jr. and 110 Taco Bueno restaurants, is also testing the Star Hardee’s concept to revitalize the brand. These restaurants add the Carl’s Jr. Star logo on signs and packaging.