Ads fail to ignite Rally's sales

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Increased ad spending failed to lift sales at Rally's Hamburgers, Louisville, Ky., in its third quarter, which ended Sept. 28, the company said. Rally's, with 480 restaurants, is partially owned by CKE Restaurants, parent of the Carl's Jr. and Hardee's chains. It recently put its $10 million advertising account, formerly at Mendelsohn/Zien, Los Angeles, in review. Rally's posted a net loss of $1.1 million for the quarter vs. a gain of $414,000 for the prior year quarter. Same-store sales dipped 7% at company-owned units and 10% at franchised units. The company said it is expanding a test of in-store dining and is upgrading more units in the fourth quarter.

Copyright November 1997, Crain Communications Inc.

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