Hardee's®

Carl’s Jr. and Hardee’s Start Round Two of Burger Battle with McDonald’s

Sep 14, 2009

<p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal; text-align: center;" align="center"><em style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; font-family: Arial;">Hardee&rsquo;s Launches Big Hardee One Month After Big Carl Intro at Carl&rsquo;s Jr.</span></em></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal; text-align: center;" align="center"><em style="mso-bidi-font-style: normal;"><span style="font-size: 8pt; font-family: Arial;">&nbsp;</span></em></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal; text-align: center;" align="center"><em style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; font-family: Arial;">Both Chains Run &ldquo;Non-response&rdquo; Ads in Response to McDonald&rsquo;s Angus Burgers </span></em></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><em style="mso-bidi-font-style: normal;"><span style="font-family: Arial; mso-bidi-font-weight: bold;"><span style="font-size: small;">&nbsp;</span></span></em></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-size: small;"><strong><span style="font-family: Arial;">CARPINTERIA, Calif. </span></strong><span style="font-family: Arial;">&ndash; September 14, 2009 &ndash; Ding, ding. Let&rsquo;s get ready for round two of the premium burger wars. In their ongoing effort to help customers avoid falling for the McHype of a big competitor, Carl&rsquo;s Jr.<sup>&reg;</sup> and Hardee&rsquo;s<sup>&reg;</sup> announced two new initiatives starting today: The Big Hardee&trade; at Hardee&rsquo;s and a new ad campaign, entitled &ldquo;Nothing,&rdquo; both chains are airing in response to McDonald&rsquo;s<sup>&reg;</sup> Angus Third Pounders introduction.</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">As ad exec/blogger, Bill Mount, commented in his &ldquo;</span><a href="http://www.drumcircleco.com/billblog/?p=154"><span style="font-size: small;">Sermon From The Mount</span></a><span style="font-size: small;">&rdquo; blog after Carl&rsquo;s Jr. began advertising The Big Carl&trade; last month, &ldquo;I&rsquo;m lovin&rsquo; it.<span style="mso-spacerun: yes;">&nbsp; </span>Carl&rsquo;s Jr. always brings automatic weapons to a knife fight.&rdquo;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">The fracas began in August with McDonald&rsquo;s Corporation&rsquo;s (NYSE: MCD) launch of the Angus Third Pounders, an attempt to copy the sit-down restaurant style burgers pioneered by Carl&rsquo;s Jr. and Hardee&rsquo;s years ago. <span style="mso-spacerun: yes;">&nbsp;</span>Carl&rsquo;s Jr. was the first to retaliate by launching The Big Carl as a counterpunch aimed at the iconic Big Mac<sup>&reg;</sup>. The Big Carl boasts twice as much meat and cheese as a Big Mac but sells for just $2.49 or less, while the Big Mac costs more than $3 on average.</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&ldquo;We knew people would be drawn to the Big Carl,&rdquo; said Andrew F. Puzder, CEO of CKE Restaurants, Inc. (NYSE: CKR), parent company of Carl&rsquo;s Jr. and Hardees. &ldquo;It&rsquo;s a bigger, better burger at a significantly lower price. But what we didn&rsquo;t expect was the very positive reaction we&rsquo;ve received for the directly comparative advertising campaign we developed to promote it.<span style="mso-spacerun: yes;">&nbsp; </span>Many people have voiced their support for us having the guts to get into the ring with an 800-pound gorilla.&rdquo;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">In order to expand the West-coast consumers&rsquo; excitement nationwide, Hardee&rsquo;s today began offering the Big Hardee. With more meat, more cheese and a lower price than the Big Mac, the Big Hardee consists of three beef patties, two slices of American cheese, a tangy sauce and shredded lettuce on a seeded bun. Available in participating restaurants, the Big Hardee costs just $2.29 or less, 70 cents less than the average price of a Big Mac.</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&ldquo;While McDonald&rsquo;s is trying to convince people that they can make as good a premium-quality burger as Hardee&rsquo;s or Carl&rsquo;s Jr. can, we knew we could make a bigger, better Big Mac for less money at both brands,&rdquo; added Puzder. &ldquo;The Big Hardee costs a lot less than the Big Mac, is charbroiled, and has more meat and cheese. And instead of having a third bun, the Big Hardee has a third beef patty.<span style="mso-spacerun: yes;">&nbsp; </span>We think burger fans will love that.&rdquo;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">Commercials supporting The Big Hardee begin airing in Hardee&rsquo;s markets Wed., while the popular commercials for the Big Carl began last month. Both campaigns can be viewed on the brands&rsquo; YouTube channels (</span><a href="http://www.youtube.com/carlsJr"><span style="font-size: small;">www.youtube.com/carlsJr</span></a><span style="font-size: small;"> and </span><a href="http://www.youtube.com/hardees"><span style="font-size: small; color: #800080;">www.youtube.com/hardees</span></a><span style="font-size: small;">).</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">In addition to the Big Carl and the Big Hardee introductions, both chains also began airing a new commercial today intended to set the record straight regarding the differences between the McDonald&rsquo;s Corporation&rsquo;s Angus Third Pounders compared to Carl&rsquo;s Jr. Six Dollar Burgers and Hardee&rsquo;s Thickburgers.<span style="mso-spacerun: yes;">&nbsp; </span>The humorous new ad, entitled &ldquo;Nothing,&rdquo; stars CEO Puzder calming down a nervous executive worried about the impact of McDonald&rsquo;s Angus Third Pounders.<span style="mso-spacerun: yes;">&nbsp; </span>After discussing the differences between the burgers, the executive asks Puzder what they should do, and the reply is &ldquo;Nothing.&rdquo; The ads, created by longtime agency, Mendelsohn/Zien Advertising, can also be viewed on the Carl&rsquo;s Jr. and Hardee&rsquo;s YouTube channels. </span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&ldquo;Our 100% Black Angus burgers are superior in taste and quality for the same price or less, and our new advertising campaign makes that clear,&rdquo; added Puzder. &ldquo;Try one for yourself and taste the difference &ndash; ours are charbroiled for that backyard grill flavor, while the &lsquo;McAngus burgers&rsquo; are fried on a flat grill. They keep telling people they should be loving it, but consumers will now know that the <em style="mso-bidi-font-style: normal;">first</em> fast-food restaurants to serve 100% Black Angus Beef burgers, Carl&rsquo;s Jr. and Hardee&rsquo;s, are still the <em style="mso-bidi-font-style: normal;">only</em> fast-food restaurants serving them.<span style="mso-spacerun: yes;">&nbsp; </span>In fact, we&rsquo;re so confident that people will prefer our burgers to McDonald&rsquo;s rip-offs, that we&rsquo;ll give them their money back if they don&rsquo;t.&rdquo;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">Any consumer wanting a refund can request a mail-in form at any Carl&rsquo;s Jr. or Hardee&rsquo;s restaurants. Guests just need to fill out the form, attach a receipt, and mail it in for a full refund. The money-back guarantee begins today and will be offered through Oct. 13. See individual restaurants for details.</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-size: small;"><span style="font-family: Arial;">But that&rsquo;s not all </span><span style="font-family: Symbol; mso-bidi-font-family: Arial; mso-ascii-font-family: Arial; mso-hansi-font-family: Arial; mso-char-type: symbol; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">-</span></span><span style="font-family: Arial;"> the premium burger wars have even spilled over onto the internet.<span style="mso-spacerun: yes;">&nbsp; </span>A digital campaign featuring comedian J.B. Smoove (HBO&rsquo;s &ldquo;Curb Your Enthusiasm&rdquo; and FOX&rsquo;s &ldquo;&lsquo;Til Death&rdquo;) also launched today on both brands&rsquo; Facebook pages (<a href="http://www.facebook.com/hardees">www.facebook.com/hardees</a> and <a href="http://www.facebook.com/carlsjr">www.facebook.com/carlsjr</a>) and YouTube channels. Smoove offers an inspirational rant for all Americans to stand up against the oppression of over-priced, under-whelming products &ndash; encouraging people to go to Carl&rsquo;s Jr. and Hardee&rsquo;s instead. The campaign was created by digital agency 72 and Sunny.</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">Stay tuned to Carl&rsquo;s Jr. and Hardee&rsquo;s Web sites, social media pages and Twitter feeds (</span><a href="http://www.twitter.com/carlsjr"><span style="font-size: small;">www.twitter.com/carlsjr</span></a><span style="font-size: small;"> and </span><a href="http://www.twitter.com/hardees"><span style="font-size: small;">www.twitter.com/hardees</span></a><span style="font-size: small;">) for even more details of the ongoing premium burger wars.</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">&nbsp;</span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><strong style="mso-bidi-font-weight: normal;"><span style="font-family: Arial;"><span style="font-size: small;">About CKE Restaurants, Inc.</span></span></strong></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: normal;"><span style="font-family: Arial;"><span style="font-size: small;">Headquartered in Carpinteria, Calif., CKE Restaurants, Inc. is publicly traded on the New York Stock Exchange under the symbol &ldquo;CKR.&rdquo; As of the end of its fiscal 2010 first quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,133 franchised, licensed or company-operated restaurants in 42 states and in 14 countries, including 1,205 Carl's Jr. restaurants and 1,915 Hardee's restaurants. For more information about CKE Restaurants, please visit </span><a href="http://www.ckr.com/"><span style="font-size: small;">www.ckr.com</span></a><span style="font-size: small;">.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p>