GB Foods Shares Fall 20% as Carl’s Jr. Debuts New Line : Dining: CKE Restaurants has tested sales of partner’s Mexican specialties at some hamburger outlets but recently introduced its own Picante Grill offerings.

Shares of GB Foods Corp. fell nearly 20% Wednesday, and the company attributed the decline to recent news that partner CKE Restaurants Inc. has introduced its own line of Mexican food products.

GB Foods’ stock lost $1.50 a share in Nasdaq trading to close at $6.125 on volume of 95,500 shares, more than three times the average three-month daily volume of 28,500. The stock was the eighth-biggest percentage decliner in U.S. trading.

The decrease may have stemmed from CKE Restaurants’ testing of its new line of Mexican food products, known as Picante Grill, at its Carl’s Jr. restaurants, said Madeline Clyde, GB Foods’ chief financial officer. The company does not know of any other reason for the decline and does not plan any announcements, she said.

CKE’s introduction of Picante Grill could mean an end to its dual-branding relationship with GB Foods. In August, CKE--which specializes in burgers and sandwiches--began testing the sale of GB Foods’ Green Burrito line of Mexican products as a way to boost its dinner business.

If the relationship proved successful, the two companies planned to form a new concern that would franchise restaurants offering the two brands outside Carl’s Jr.’s existing territory in the Southwest. So far, no attempt has been made to proceed with those plans.

CKE is “looking to see which does better--Green Burrito or Picante Grill,” a company spokesman said. CKE may decide to offer both lines of Mexican products, which are slightly different, or scrap its relationship with GB Foods in favor of its own line, he said.

Offering its own products might be simpler for CKE, analysts said, given that GB Foods has recently been dealing with management changes and franchisee lawsuits.