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CKE's year-end revenues drop slightly, profit surges
March 25, 2009
CARPINTERIA, Calif. — Despite a slight drop in revenue, CKE Restaurants Inc., parent company of Carl's Jr. and Hardee's restaurants, has recorded a 19 percent increase in its net income for the year ended Jan. 26, the company has announced.
Fourth quarter blended same-store sales were up 0.3 percent, the company's 13th consecutive quarter of positive blended same-store sales. Year-to-date, blended comps at company-operated restaurants increased 1.7 percent, with company-owned Carl's Jr. comps up 2.1 percent and Hardee's up 1.2 percent. On a two-year cumulative basis, Carl's Jr. comps were up 3.0 percent and Hardee's 3.2 percent.
Company revenues were down 3.2 percent to $327 million compared to $338 million reported in the same period last year. For the year, revenues were down 3.4 percent to $1.48 billion compared to $1.53 billion last year.
CKE CEO Andrew Puzder said revenues at Carl's Jr. company-operated restaurants were up $29.8 million, or 5.0 percent, from last year, due to the increase in same-store sales and the net addition of 10 company-operated restaurants over the past year. Revenues at company-operated Hardee's restaurants were down $100.1 million, or 16.5 percent, as Hardee's completed its refranchising program through the sale of 102 restaurants during the year to new and existing franchisees.
Net income for the quarter was $2.6 million compared to $98,000 in the same period last year. For the year, net income was up 19 percent to $37.0 million compared to $31.1 million last year.
For the coming fiscal year, CKE plans include:
- Continue to offer innovative, premium products supported by cutting-edge advertising
- Focus on order accuracy in a clean, attractive environment
- Advertising focus on value of the brands' premium products as compared to casual dining fare, including through point-of-sale materials and couponing
- Continue to execute its Capital Plan through remodels and dual-brand conversions, franchise growth and development domestically and internationally, and control costs within restaurants and at the corporate level
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