CKE Slows Net Income Decline

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CKE Restaurants Inc. Wednesday said its second quarter earnings fell only slightly from a year ago, with the fast food restaurant operator partially crediting a new advertising campaign aimed at cost-conscious consumers.

The Carpinteria owner of the Carl’s Jr. and Hardee’s chains reported net income of $12.25 million (22 cents per share) for the quarter ended Aug. 2, compared with net income of $12.34 million (23 cents) a year ago. Revenue fell nearly 5 percent to $336 million.

Analysts surveyed by Thomson Reuters on average expected the company to have adjusted earnings of 22 cents on revenue of $341 million.

Same-store sales at Carl’s Jr. company-operated locations fell 6.1 percent due to the particularly weak economy in California, the company said, with Hardee’s same-store sales down 2.7 percent due to weak overall economy nationally.

“I am pleased we held net income and restaurant level margins constant with the prior year in such a difficult sales environment,” Chief Executive Andrew F. Puzder said in a statement. “We are particularly excited about our new advertising campaigns designed to change people’s misperceptions about our value-for-the-money.”

Prior to the announcement, CKE shares closed up 46 cents, or 4 percent, to $11.27 on the New York Stock Exchange.

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