Karcher Enterprises Sees Sales Increase in 2nd Quarter

Despite discounting to stay competitive, Carl Karcher Enterprises Inc. said Monday that it earned $5.1 million during its second quarter ended Aug. 13, up 8.5% from earnings of $4.7 million last year.

The Anaheim-based operator of the Carl's Jr. fast-food chain said sales for the quarter rose to $125 million, up 1.7% from last year's $122.9 million.

The company called the figures "encouraging, considering the heavy competitive discounting" among fast-food chains over the summer that hurt industry profits.

For the first six months of Karcher's fiscal year, the company earned $10.3 million, a drop of 1% from last year's $10.4 million.

Given the improvement in second-quarter earnings, the company said it expects to show stronger year-end earnings for 1990 than it did in 1989.

Sales for the first six months rose 3.8%, to $282.1 million from $271.7 million.

Sales increased this year despite Karcher's selling or franchising 40 company-owned restaurants in Arizona, the company said.

Karcher owns, franchises or licenses 554 restaurants in the western United States and Japan.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
57°