CKE Restaurants’ Net Nearly Triples
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ANAHEIM — CKE Restaurants Inc., the parent company of Carl Karcher Enterprises Inc., posted better-than-expected earnings in the fiscal first quarter.
Net income almost tripled while revenue climbed 11% for the three months ended May 20, the company reported.
CKE, which operates about 665 Carl’s Jr. burger restaurants, attributed the higher earnings to improved operating efficiencies at the stores, as well as to sales growth stimulated by increased advertising and its dual-brand venture with Green Burrito.
Same-store sales, a key measure of performance, increased 12.7%, compared with a small decline for the same period a year ago.
The company’s first-quarter profit totaled $5.3 million, or 28 cents a share, the highest quarterly net income in seven years. The results beat the average estimate of 19 cents a share from four analysts surveyed by Zacks Investment Research.
The figure included a one-time charge of $1.3 million for an accounting change. Net income a year ago was $1.9 million, or 11 cents a share. Revenue increased to $152.9 million from $137.6 million.
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