Core Insights - The fast-food/quick-serve restaurant (QSR) industry is characterized by intense competition and cost sensitivity, with profit margins typically ranging from three percent to nine percent of revenue [2][3] - Hardee's and Burger King are facing significant challenges, including declining profit margins due to price wars and changing consumer preferences for healthier options [3][4] - Rising operational costs, including labor and ingredient expenses, are further straining the profit margins of these chains [4] Company-Specific Issues - Hardee's struggles have been less publicized compared to Burger King's, which has faced franchisee bankruptcies and operational challenges [5][8] - A New York franchisee, Paradigm Investment Group, is in a legal dispute with Hardee's parent company over operational requirements that could lead to the closure of 76 locations [6] - Paradigm has invested over $173 million in its Hardee's restaurants and paid more than $87 million in royalties, but is facing termination for not adopting digital services [7]