CKE Stock Rises 27%

CKE Restaurants Inc.’s stock jumped 27% Monday in what analysts described as a market correction on shares that have been under heavy selling pressure.

Anaheim-based CKE’s stock had dropped more than 50% this year, hitting a 52-week low Friday of $17.19 a share. The stock closed Monday at $21.75, up $4.56 a share, in New York Stock Exchange trading. More than 1 million shares changed hands, twice the daily average for the past three months.

“There’s no correlation in the volatility of the stock and the fundamentals of this company,” said Howard W. Penney, an analyst with Morgan Stanley Dean Witter. “It was down a lot last week for really no fundamental reason. And the market’s correcting itself.”

CKE operates the Carl’s Jr., Hardee’s and Taco Bueno fast-food chains.

“I think it was just oversold,” said analyst Selman Akyol, with Pauli & Co. “There seems to be some concerns out there over the third quarter, and Hardee’s performance in particular, but with the stock price the way it was, it more than offset any risk.”

The company said last week that sales at its Hardee’s stores that have been open at least a year would decline for the rest of the year. But Chief Financial Officer Loren Pannier said Monday the company is meeting its goals for reviving the hamburger chain.