Carl’s Jr. Holding the Line on Prices

Will McDonald’s Big Mac pricing strategy force Carl’s Jr. and other fast-food operators to follow suit and slash their burger prices?

Probably not, according to Tom Thompson, president and chief operating officer of CKE Restaurants Inc.

“We believe that our guests expect a great burger at a good value--and that’s what Carl’s Jr. is delivering,” Thompson said after hearing that the world’s largest fast-food chain plans to lower the cost of its Big Mac to 55 cents.

For the last two years, Carl’s Jr. has been trying to avert a price war with McDonald’s, Burger King and other fast-food chains. It has instead been emphasizing the quality and quantity associated with its burgers, as well as its practice of adding Green Burrito Mexican-style food at select locations.

The strategy is working. Same-store sales have increased seven consecutive quarters. Over the last year, sales at stores open for at least a year rose by 10.7%. During the same period, McDonald’s saw its same-store sales fall.

Greg Johnson covers retail businesses and restaurants for The Times. He can be reached at (714) 966-5950 and at greg.johnson@latimes.com