Another Sizzling Quarter at CKE Restaurants

CKE Restaurants Inc. reported that net income for the first quarter ended May 19 nearly doubled and that revenue for the period rose by 62.8%.

The restaurant company tied strong quarterly results to continued improvements at the Carl’s Jr. burger chain as well as solid gains at the company’s other restaurant operations.

“All of CKE’s concepts were profitable for the quarter,” said CKE Chairman and Chief Executive William P. Foley. “However, our Carl’s Jr. chain continues to propel the company’s success.”

Quarterly net income rose to $10.6 million, or 31 cents per share, compared to $5.3 million, or 19 cents per share, a year earlier.

Revenue for the 16-week period rose by $81.4 million to $210.9 million.

Sales at Carl’s Jr. restaurants open for at least a year rose by 6.1%, compared to a 12.7% increase a year earlier.

The increase marked the eighth consecutive quarterly increase in same-store sales at the company’s restaurants.

CKE reported that Carl’s Jr. per-store average sales rose by $89,000 to $1.1 million, the highest average in the Anaheim-based company’s history.

CKE also linked its improved sales and earnings to growing consumer demand for its Mexican-style fast food.

The company’s Taco Bueno subsidiary, with 107 locations, reported that same-store sales rose by 8%, driving the Texas-based chain’s revenue to $22.4 million.

Closer to home, CKE said that sales of Green Burrito brand menu items continue to grow.

CKE said it had agreed to increase the number of Carl’s Jr. restaurants featuring Green Burrito fare to more than 300 during the next four years.

Foley said that CKE’s proposed acquisition of the Hardee’s Food System burger chain, with 3,153 units, is expected to close in July.

CKE plans to add Carl’s Jr. burgers to menu boards at Hardee’s, a chain that’s located mainly in the East and South.

* RODMAN BOOTED

Carl’s Jr. drops NBA star Dennis Rodman as a spokesman. C1