CKE Restaurants Swings to Profit

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CKE Restaurants Inc. on Tuesday reported that it swung to a profit in the second quarter ended Aug. 15, exceeding analysts’ estimates and reversing a year-earlier loss.


CKE’s results, released after the close of trading on Tuesday, caused shares to surge as much as 6.1 percent after-hours, to as high as $12.62 each.


Carpinteria-based CKE, owner of the Hardee’s and Carl’s Jr. fast-food chains, posted net income of $8.4 million (13 cents per diluted share) for the quarter, compared with a loss of $12.7 million (22 cents) a year earlier. Revenue grew 1.7 percent to $359.8 million from $353.7 million a year ago.


The latest quarter’s results included an $11 million charge to purchase stock options from CKE’s retired chairman, William P. Foley. The prior year’s second quarter included $22.3 million in legal settlement costs and early debt extinguishment. Excluding the charges, CKE said net income would have been $19.4 million, compared with $9.6 million a year earlier.


Analysts had predicted earnings, excluding items, of 19 cents per diluted share on revenues of $361.9 million.


CKE said second quarter same-store sales rose 1 percent at Carl’s Jr. but were flat at Hardee’s.

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