Fat Profits

It was a patriotic statement that went a bit too far afield: an attempt to create the "ultimate picnic burger." Called the Fourth of July Burger, it was tested last summer at seven locations by the West Coast fast-food chain Carl's Jr. and consisted of a huge beef patty topped with pickles, ketchup, mustard, potato chips, and a hot dog. Stacked high and loaded with fat and calories, it was the food equivalent of the national anthem played through a sousaphone, a perfect distillation of a peculiarly American form of balls-out, postmodern gluttony that, at least outwardly, we're all supposed to be ashamed of right now.Yet for all its pomp and glory, it didn't quite work. When John Koncki, director of product development for Carl's Jr., talks about it now, he comes across a little wistful. It tasted really good, he says, but the name and the concept proved too much for the testers. "Sometimes," the earnest Koncki says, "some of the sandwiches are so unique that consumers can't wrap their heads around them."The uniqueness isn't the only thing that's hard to get your head around. During the past few years, CKE Restaurants, the parent company of Carl's Jr. and Hardee's, has employed an audacious go-for-bloat approach that defies just about everything you've come to assume about the business of modern fast food. In an age when other chains have been forced to at least pretend that they care about the health of their customers and have started offering packets of apples and things sprinkled with walnuts and yogurt, Hardee's and Carl's Jr. are purposely running in the opposite direction, unapologetically creating an arsenal of higher-priced, high-fat, high-calorie monstrosities—pioneering avant-garde concepts such as "meat as a condiment" and "fast-food porn"—and putting the message out to increasingly receptive consumers with ads that are often as controversial as the burgers themselves.That message may be revolutionary or totally evil or maybe both, but in any case, it goes like this: Anyone can make Americans fat (hell, everyone already has), but only one fast-food company can make them fat and allow them to feel good about it, even get them to feel like they're making a statement and striking a blow against the forces of political correctness. It's downright Jeffersonian in its own weird way, and judging by the growth of both chains, it's working extraordinarily well. Since 2000, CKE's average sales per store have increased by 31 percent, a rate greater than any other burger chain's, save for the nostalgia-mongering Sonic drive-ins, with which CKE is tied. And its stock soared, from about $2 in 2001 to more than $22 last June, before slipping back to around $15 at the end of the year.