CKE net income eases significantly in fiscal year 2007

by Staff
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CARPINTERIA, CALIF. — CKE Restaurants Inc. posted net income of $50,172,000, equal to 79c per share on the common stock, for the fiscal year ended Jan. 31 — a 72% decrease from the previous year’s net income of $181,139,000.

However, this year’s results include an income tax expense of $31.9 million, and the previous year’s results included a $123.9 million income tax benefit.

Total revenue increased 5% to $1,588,410,000, which compared with the previous year’s revenue at $1,518,347,000. Same-store sales increased 4.9% at company-operated Carl’s Jr. restaurants and 4.8% at Hardee’s company-operated restaurants.

"Both Carl’s Jr. and Hardee’s finished the year with strong same-store sales momentum and reduced their restaurant operating costs as a percent of company-operated revenue for the year," said Andrew F. Puzder, chief executive officer. "For the full fiscal year, income before income taxes was $82.1 million, a $24.8 million or 43.4% increase, compared to $57.3 million in the prior year. I am particularly pleased with our nearly $25 million increase in income before income taxes this year."

Net income for the quarter ended Jan. 31 was $10,331,000, or 15c per share, down 93% compared with the same period of the previous year at $140,869,000. Revenue increased 3% to $358,970,000, which is up from $348,542,000 during the same quarter of the previous year.

"We are very optimistic about the near- and long-term opportunities available to both of our major brands, including the remodeling of our restaurants and the rollout of our dual-branded concepts," Mr. Puzder said. "Our focus will remain on the fundamentals within our restaurants, including our innovative premium products and ‘Six Dollar Service’, effective advertising, cost control, and building new units within our core markets to better leverage our infrastructure and marketing presence."

As of Jan. 29, CKE Restaurants had 3,105 franchised or company-operated restaurants in 43 states and 13 countries.

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