CKE Posts 52% Rise in Profit on New Products
CKE Restaurants Inc., parent of the Carl’s Jr. and Hardee’s fast-food chains, reported a 52% rise in fiscal first-quarter profit Monday, as sales of new items offset higher beef costs.
The Carpinteria, Calif., company said net income rose to $16 million, or 24 cents a share, from $10.5 million, or 17 cents, a year earlier. Sales in the quarter ended May 23 climbed 2.3% to $465.9 million.
Analysts surveyed by Thomson First Call had expected earnings of 29 cents a share.
CKE reported its results after the market close. Its shares were halted in after-hours trading after gaining 39 cents, or 2.6%, to $15.22 in regular trading.
The company said both Carl’s Jr. and Hardee’s overcame a surge in beef prices to near all-time highs.
CKE has tried to offset such pressures, in part, through headline-grabbing means. Last month, it launched a racy television commercial featuring a barely clothed Paris Hilton washing a car and noshing on a hamburger.
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