Rally’s Hamburgers Ends Talks With Green Burrito

NEWPORT BEACH — Green Burrito franchiser GB Foods Corp., whose effort to test dual menus with the Carl’s Jr. chain ended in lawsuits, lost out on another chance Tuesday when Rally’s Hamburgers Inc. ended discussions with GB Foods to operate restaurants with food items from both chains.

GB Foods, based in Newport Beach, and Rally’s, based in Louisville, were testing a menu that included Green Burrito’s Mexican-style food at certain Rally’s restaurants. Rally’s said that early results in its test stores were positive, but it couldn’t reach an agreement with GB Foods.

As Carl’s Jr. did, the Rally’s hamburger chain plans to continue offering Mexican-style fast-food in its restaurants. Rally’s said it either would develop its own products or reach agreement with another Mexican-style eatery.

The test between GB Foods and the Carl’s Jr. hamburger chain ended acrimoniously in February when GB Foods traded lawsuits with CKE Enterprises, Carl Jr.’s Anaheim-based parent company, over alleged violations of an agreement governing the dual-menu test.