CKE Credits Hardee’s Buy for Soaring Quarter Profit

CKE Restaurants Inc., parent of the Carl’s Jr. and Hardee’s burger chains, said Thursday that third-quarter profits nearly tripled, thanks to the acquisition of Hardee’s Food Systems Inc. in July.

Chairman William P. Foley II said all of the company’s restaurant chains--the 749-unit Carl’s Jr., the 2,994-unit Hardee’s, 109-unit Taco Bueno, 26-unit Rally’s and 94-unit JB’s Restaurants--were profitable in the period.

Net income rose to $13.1 million, or 30 cents a share, from $5.6 million, or 19 cents a share, a year earlier. Sales for the period ended Nov. 3 more than doubled to $347.4 million from $162.1 million.

Foley attributed Hardee’s improved results to lower food, paper and labor costs, which fell to 67.7% of revenue from 70.7% at the end of the 1996.

The conversion of 47 Oklahoma City Hardee’s to Carl’s Jr. restaurants is yielding sales gains as high as 19.6% over year-earlier results, Foley said. The company hopes to convert 29 Hardee’s in Peoria, Ill., to the Carl’s Jr. format by the end of the month.

Sales at restaurants open at least a year--a key measure of growth-- rose 2.1% at Carl’s Jr. and 4.5% at Taco Bueno, but fell 6.7% at Hardee’s.

For the nine-month period, CKE’s profits more than doubled to $34.2 million, or 88 cents a share, from $16.1 million, or 55 cents a share. Revenue also more than doubled to $824.9 million from $383.3 million.

CKE shares rose 63 cents to $41 Thursday on the New York Stock Exchange.