Fast Food Mogul Decries 'Socialist' State Governments

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Red baiting: It's not just for teabaggers anymore.

Andy Puzder, the chief executive of CKE Restaurants (CKR), has been unable to match the success of some of his competitors—most particularly McDonald's—despite (or in part because of?) the obnoxious, puerile ads he has approved for the company's Hardee's and Carl's Jr. franchises.

But it's not his fault. Partly, he said Wednesday, it's the fault of "socialist type" state governments in California and Oregon. In a conference call with analysts, Puzder repeated his previously stated plan to "lessen our exposure in California over time." Meanwhile, "we’re targeting a large percentage of our growth in Texas," he said. "It is deemed to be more business-friendly." As for Oregon, it "has a higher minimum wage and a similar regulatory structure as California and also has a similar socialist type government at the state level so business there actually can be as bad or worse than California."

CKE is headquartered behind the iron curtain, in Carpinteria, Calif.

Meanwhile, sales continue to droop. Revenue fell 4.7 percent in the second quarter, and same-store sales, a more accurate barometer, fell by 6.1 percent. Profits were down, though in line with expectations, and margins held steady thanks largely to lower commodity costs.

Puzder has obstinately refused to offer discounts or to do much of anything to lure recession-weary consumers into his stores. He sees his restaurants as being somehow a cut above common fast-food joints, even though offering big, expensive burger meals is as premium as either Hardee's or Carl's Jr. get.