May 2, 2005

Chain Update

Wendy’s, Panera and CKE are among the restaurant chains that announced significant financial operational news in recent days.

Wendy’s International reported its first-quarter financial results. The company’s revenue increased by 7.1% to $894.2 million. Net income for the quarter fell by 2.8% to $51.3 million. Same-store sales at company-owned Wendy’s stores in the United States fell by 2.2% vs. the same period a year ago, while franchised domestic Wendy’s units reported a 1% drop in same-store sales. A portion of this decline is due to the incident in which a diner claimed to have found a human finger in a bowl of Wendy’s chili. Police have since said they believe the claim is a hoax. The person involved is expected to face criminal charges in relation to the incident.

Jack in the Box Chairman and CEO Robert Nugent, 63, announced plans to retire from both posts at the end of the year. He will be replaced in both positions by Linda Lang, currently the company’s president and chief operating officer.

CRBL Group reported its same-store sales for the five weeks that ended on April 29. Cracker Barrel Old Country Store locations reported a 2.5% increase in same-store sales vs. the year-ago period. The Logan’s Roadhouse concept posted a 4.4% increase in same-store sales.

Panera Bread announced that its revenue for the quarter that closed on April 19 reached $178.1 million, a 37.1% increase from the same period a year earlier. For the four weeks that ended on April 19, company-owned restaurants posted a 6.2% same-store sales increase, while franchised units reported an increase of 6.1%. System-wide same-store sales grew by 6.2% during the period.

CKE reported certain same-store sales results for the four weeks that closed on April 25. The company’s Carl’s Jr. concept increased its same-store sales by 1.7% during the period compared to the same time a year ago, while Hardee’s posted a 1.7% drop in same-store sales.

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