CKE income down 13% in quarter
December 11, 2008
by FoodBusinessNews.net Staff
CARPINTERIA, CALIF. — The impact of refranchising 118 Hardee’s restaurants during the past year and a $3.1 million increase in interest expense led to a 13% decrease in net income for CKE Restaurants, Inc. for the third quarter ended Nov. 3.
Net income for the quarter was $5,388,000, equal to 10c per share on the common stock, which compared with $6,202,000, or 11c per share, during the same quarter of the previous year.
Total revenue for the quarter was $336,595,000, down 4% from $351,622,000 during the same quarter of the previous year.
"The ongoing financial crisis continues to place unprecedented pressure on consumers," said Andrew F. Puzder, president and chief executive officer. "Despite this challenging environment, we were able to increase blended same-store sales 0.9% during the third quarter on top of a 1.7% increase in the prior year. On a consolidated basis, restaurant-level operating expenses increased 50 basis points versus the prior year quarter due primarily to higher utility costs and increased depreciated expense related to our ongoing remodel program. The menu initiatives and price increases we have taken over the past year allowed us to keep food costs relatively flat during the third quarter."
For the nine months ended Nov. 3, the company had net income of $34,348,000, or 66c per share, up 11% from $30,978,000, or 51c per share, during the same period of the previous year. Sales for the nine months were $1,155,256,000, down 3% from $1,196,515,000 during the same period of the previous year.