Carl Karcher Enterprises Inc. reported that net income for its third quarter ended Oct. 31 doubled to $4.2 million from $2.1 million. Revenue for the quarter rose 20% to $106.5 million from $88.5 million.
The Anaheim-based fast-food chain reported that the year-earlier third quarter included a $3.7-million pretax charge primarily resulting from losses on investments as a result of the October, 1987, stock market decline. That contrasts with investment and other income of $2.6 million earned in the current quarter.
Net income for the first 9 months of fiscal 1989 totaled $16.6 million, a 41% increase from the $11.8 million posted for the like period a year ago. Revenue was $334.5 million, up 19% from the $280.7 million reported in the comparable period the prior year.
Donald F. Karcher, president, said, ‘Guest counts are up 7% from last year. There are clearly many more people visiting Carl’s Jr. restaurants these days and they are spending more money.”
In a separate announcement, the company said it would purchase nine Wendy’s restaurants in the Sacramento area from Classic Prime Limited Partnership of Knoxville, Tenn., for $2.2 million. The sale is scheduled to close Monday, and the conversion to Carl’s Jr. outlets will take 60 to 120 days, the company said.