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News > Midsized Companies
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CKE Restaurants' stock falls on loss
Shares off almost 12% as operator of Carl's Jr. and Hardee's takes charges and settles lawsuits.
September 13, 2004: 11:16 AM EDT

NEW YORK (Reuters) - CKE Restaurants Inc., which runs the Carl's Jr. and Hardee's fast-food chains, posted a quarterly net loss Monday due to one-time charges for lawsuits and debt retirement.

CKE (CKR: down $1.55 to $10.83, Research, Estimates) shares tumbled almost 12 percent in morning trade on the New York Stock Exchange.

CKE, which operates some 3,200 restaurants, said beef costs increased in the quarter and it raised reserves for compensation and liability claims, hurting profit margins at its Carl's Jr. unit.

The Carpinteria, California-based company reported a net loss of $11.4 million, or 20 cents per share, for the fiscal second quarter ended Aug. 9, compared with a year-earlier profit of $6.3 million, or 11 cents per share.

Excluding charges of $7 million to settle three related wage-and-hour class-action lawsuits and $12.5 million related to retirement of debt and other matters, CKE said it had a profit of $10.8 million, or 17 cents per share, in the latest quarter.

On that basis, latest-quarter earnings missed analysts' average estimates of 20 cents a share, according to Reuters Estimates.

CKE said sales at company-operated restaurants open at least a year, an important measure of retail strength, rose 8.1 percent at Carl's Jr. for the quarter, helped by new products such as the Loaded Breakfast Burrito.

Hardee's same-store sales climbed 6.2 percent, benefiting from the introduction of the Western Bacon Thickburger in the latter part of the quarter.

CKE owns or franchises 1,016 Carl's Jr., 2,067 Hardee's, and 105 La Salsa Fresh Mexican Grill restaurants.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.