CKE’s 3rd-Quarter Profit Sags 81%

CKE Restaurants Inc., the fourth-largest U.S. hamburger chain, said Thursday that profit for its fiscal third quarter tumbled 81% on slower sales at its Hardee’s and Carl’s Jr. restaurants.

The Anaheim-based company earned $3 million, or 6 cents a share, down from $16.1 million, or 31 cents, a year earlier. The quarterly results a year ago exclude $2.7 million, or 4 cents a share, for early retirement of debt.

Revenue for the quarter ended Nov. 1 fell about 1% to $453.6 million.

CKE also said it expects to post noncash charges of $60 million to $80 million in its fourth quarter, including a reserve tied to plans to close 60 to 90 Hardee’s restaurants within the next year.

The company’s stock moved slightly lower Thursday after the financial report, hitting a 52-week low of $5.81 a share before closing at $5.94, off 6 cents for the day. The shares, which trade on the New York Stock Exchange, have lost nearly 80% of their value so far this year.

CKE has warned for five straight quarters that profit would fall below forecasts.

In addition to sluggish sales, the company has been saddled with costs of remodeling the Hardee’s burger restaurants into Carl’s Jr. and Star Hardee’s, which have improved menus and service.

The results are in line with analysts’ estimates, according to a survey by First Call Corp. Last month, analysts lowered their estimates by about 11 cents a share after CKE had warned of lower profit.

“The third quarter did not measure up to our expectations,” Tom Thompson, president and chief operating officer, said in a statement.

The company said last month that it would cut 150 jobs at Hardee’s headquarters in Rocky Mount, N.C.

CKE operates more than 3,800 restaurants, including 914 Carl’s Jr., 2,794 Hardee’s and 116 Taco Bueno stores.

Sales at Carl’s Jr. stores open at least a year--a key barometer of performance in the industry--fell 1.8% for the third quarter. Same-store sales for the Carl’s Jr. franchise system rose 2.1%.

Same-store sales at company-operated Hardee’s restaurants decreased 5.2%, while these sales at Hardee’s franchise restaurants fell 1.7%.

Same-store sales at Taco Bueno rose 7%.