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Carl's Jr., Hardee's See Profit In Gourmet Burgers

  • , Thursday, January 10, 2008 11:46 AM
CKE, which operates the Hardee's and Carl's Jr. chains, says it will continue to promote premium-priced burgers like the Portobello Mushroom Six Dollar Burger and the $3.99 Philly Cheesesteak Thickburger as its bigger rivals battle it out over 99-cent value meals. Those items were heavily promoted in December when the chain boosted its same-store sales by 1.2% systemwide.

Sales dropped at Hardee's, however, for the first time since 2006. The company blames bad weather, and says the sales results are proof that their strategy was working. Casual dining companies have seen traffic drop in recent months as more consumers cut back on spending. To reel in those diners, most fast food chains have focused on their value menu that offers less-expensive items.

Darren Tristano, executive vice president of Technomic, a research and consulting company, says that CKE's strategy may be successful, even in a difficult economic environment, since diners less sensitive to price points may still look for a fast-food option for convenience.



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