CKE Says Quarterly Sales Beat Forecasts

CKE Restaurants Inc., buoyed by good weather and its successful “$6 burger” promotion, rang up sales in the fourth quarter that exceeded expectations, the company said Friday.

The stock, which more than tripled over the last year, climbed Friday to a 52-week high of $10.85 before closing at $10.80, up 90 cents, on the New York Stock Exchange.

Although the Anaheim-based company expects to post a fourth-quarter loss, its ninth consecutive quarter in the red, sales gains at its Carl’s Jr. and Hardee’s fast-food restaurants bolstered CKE’s earlier predictions that it would return to profitability early this year. Analysts expect CKE to report a loss of 2 cents a share for the quarter, according to a survey by Thomson Financial/First Call.

Sales were much stronger than expected at Hardee’s, which has been a drain on CKE since the company acquired the chain in 1998. Sales of restaurants open at least a year--a key industry measure--jumped 6.4% for the three months ended Jan. 28, according to preliminary reports. Same-store sales at Carl’s Jr. increased 4.3%. The company had been expecting sales increases of 1% at Hardee’s and 2% at Carl’s Jr. restaurants.

Unlike such fast-food competitors as McDonald’s Corp. and Taco Bell, CKE has largely avoided price wars. The chain has instead focused on higher-priced and more profitable premium products, including the “$6 burger,” said restaurant consultant Randall Hiatt of Fessel International in Costa Mesa.

At Hardee’s, the gourmet hamburger, which actually sells for $3.95, has generated strong sales since it was added to the chain’s menu in late November, said CKE’s director of finance, Steven Posey. The promotion was expanded to Hardee’s after boosting Carl’s Jr. sales for five months.