Industry News | September 17, 2008
CKE Reports Second Quarter Results
Second Quarter Highlights
-- Second quarter net income was $12.3 million, or $0.23 per diluted share. Income from continuing operations in the prior year quarter was $11.7 million, or $0.18 per diluted share. The 27.8 percent increase in diluted earnings per share is in part attributable to the Company's share repurchase program which was the primary driver of the 11.0 million share reduction in weighted-average diluted shares outstanding versus the prior year quarter.
-- Blended company-operated same-store sales for the second quarter of fiscal 2009 increased 3.6 percent. Same-store sales increased 3.8 percent and 3.3 percent at Carl's Jr. and Hardee's company-operated restaurants, respectively.
-- Blended average unit volume for the trailing-13 periods was $1,207,000 at company-operated restaurants. Average unit volumes for the trailing-13 periods increased to $1,527,000 and $973,000 at company-operated Carl's Jr. and Hardee's restaurants, respectively.
-- Consolidated restaurant operating costs decreased 80 basis points to 80.7 percent of company-operated restaurants revenue. Reduced payroll and employee benefits costs more than offset higher food and packaging costs and higher depreciation expense related to our remodel program at both brands.
-- Restaurant operating costs at Carl's Jr. company-operated restaurants decreased 30 basis points, compared to the prior year quarter, to 79.3 percent of company-operated restaurants revenue. A reduction in payroll and employee benefits expense more than offset higher food and packaging costs.
-- Restaurant operating costs at Hardee's company-operated restaurants decreased 90 basis points, compared to the prior year quarter, to 82.4 percent of company-operated restaurants revenue. Lower payroll and employee benefits expense more than offset an increase in occupancy and other expense. Food and packaging costs were 30 basis points lower than the prior year quarter.
-- Consolidated revenue for the current year quarter was $352.5 million, a 2.9 percent decrease from the prior year quarter. Company-operated restaurants revenue for the current year quarter was $267.1 million, a 7.2 percent decrease from the prior year quarter, reflecting the refranchising of 155 Hardee's restaurants partially offset by the opening of 20 new company- operated restaurants over the trailing-13 periods and positive same-store sales over the prior year quarter.
-- For the twenty-eight weeks ended Aug. 11, 2008, the Company generated earnings before interest, income taxes, depreciation and amortization, facility action charges and share-based compensation expense ("Adjusted EBITDA") of $95.6 million, versus $92.7 million in the comparable prior year period. For the trailing-13 periods ended Aug. 11, 2008, the Company generated Adjusted EBITDA of $167.9 million.
-- Fully diluted shares outstanding for the twelve and twenty-eight weeks ended Aug. 11, 2008, were 54.4 million and 54.3 million, respectively.
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