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Carl’s Jr. is well known for its sexy commercials. Whether its Paris Hilton’s sensual splay across a black Bentley or Padma Lakshmi sitting on the stoop, these ads command attention. So who’s the latest burger babe? Former The Hills cast member Audrina Partridge. No doubt the restaurant knows its target audience.
But parent company CKE Restaurants [CKR
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] needs more than spokesmodels if it plans to survive this economy. Price wars involving Burger King [BKC
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], McDonald’s [MCD
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], Wendy’s [WEN
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] and others are hurting margins. The recession has hit hard in CKE’s home base of California, where 87% of company-owned Carl’s Jrs. are located. And first-quarter sales were down 4.2% year-over-year.
Cramer had recommended the stock as a speculation play back on May 22, and investors who took his advice have earned 12.5% so far. But he wanted to know if the trend would continue in spite of these pressures. CEO Andy Puzder appeared on Mad Money to tell us.
Watch the video for Cramer’s full interview with the CKE CEO.
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