Industry News | December 10, 2002

CKE Restaurants Reports Third Quarter FY2003 Results

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CKE Restaurants (NYSE: CKR) announced yesterday results for fiscal year 2003 third quarter.

Earnings per share were up sharply at $0.16 per diluted share compared with a loss of $0.03 per share in third quarter 2002. Net income increased to $9.5 million compared with a loss of $1.7 million in the prior year.

Gross margin percentage of sales at Hardee's increased 40% year-over-year to approximately 13%. Gross margin percentages at Carl's Jr. declined slightly, however, from 21% to approximately 20%.

After reporting five consecutive quarters of same store sales gains, Carl's Jr. reported a 5% decline for the third quarter over the previous year. Hardee's, which has posted positive gains for the last four quarters, reported a 1% decline in same store sales for the third quarter.

The positive earnings reported were heavily impacted by three one-time transactions: a tax benefit of $5.5 million, a gain of $3 million on the sale of Checkers Drive-In Restaurants stock, and a gain on the retirement of debt of around $700,000. Given these one-time benefits, earnings from continuing operations were essentially flat, said CEO and President Andrew Puzder.

Puzder reiterated previous guidance of $0.50 to $0.52 for fiscal 2003.

"The QSR segment is experiencing unique pressures including significant price discounting by our competitors which has impacted our sales results. However, year-over-year margins remain stable at Carl's Jr. and continue to improve at Hardee's."

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.