Karcher Reports Record Earnings, Sales for Year

Carl Karcher Enterprises reported record earnings and sales for fiscal 1988, posting a $16-million profit for the year after losing $7.1 million in fiscal 1987.

Revenues for the fiscal year ended Jan. 25 rose to $369.5 million, up 16% from $317 million in fiscal 1987.

For the fourth quarter, the Anaheim-based operator of the Carl’s Jr. fast-food chain reported net income of $4.2 million, contrasted with a net loss of $11.3 million in the same period a year earlier.

Revenues for the fourth quarter were $88.7 million, up 16% from $76.5 million in the year-ago quarter.

‘Banner Year’

The results reflect Karcher’s success in turning the company around over the past year. “Fiscal 1988 has been a banner year for Carl Karcher Enterprises,” said Donald F. Karcher, president and chief operating officer. “The company’s real growth--sales increases adjusted for menu price increases--was 14% for the year. The real growth was even higher in remodeled restaurants.”

The company’s fiscal 1988 earnings included a one-time tax benefit attributable to losses associated with the sale of underperforming restaurants in 1987.

Karcher said the company’s “positive momentum in sales and earnings is continuing into fiscal 1989.”

Karcher Enterprises owns or franchises 449 Carl’s Jr. restaurants in four states.