CKE Restaurants Expects Earnings Short of Estimates
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CKE Restaurants Inc. shares retreated Tuesday after the operator of fast-food restaurants, including Hardee’s, said fiscal third-quarter earnings will fall at least a penny short of analysts’ estimates.
The stock fell to $19.25 a share during the session before rallying to close at $21.75, off 69 cents.
The Anaheim-based company said it expects third-quarter earnings of 39 cents to 40 cents a share, up from 30 cents in the year-earlier period. It was expected to earn 41 cents a share, the average estimate of analysts polled by First Call Corp.
In the quarter, Carl’s Jr. stores will likely meet their same-store sales growth expectations of 2% to 3%, the company said, while Taco Bueno stores will post expected gains of 4% to 5%.
CKE said it will post a third-quarter gain of $10.3 million related to the sale of its stake in Star Buffet. The company will also take a $15-million charge for its investment in Boston West LLC, which filed for bankruptcy protection.
The company also said it arranged to provide administrative and management services to Boston West, a Boston Chicken franchisee operating Boston Market restaurants in Southern California. CKE owns an 11% stake of Boston West.
Boston Chicken Inc. filed for Chapter 11 bankruptcy protection Oct. 5.
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