CKE Swings to Profit in Fiscal Year

CKE Restaurants Inc. reported its first profitable fiscal year in this decade and initiated a quarterly dividend Tuesday as its turnaround of the Carl’s Jr. and Hardee’s fast-food brands gained traction.

CKE said it earned $7.07 million, or 12 cents a share, on revenue of $361.9 million in the fiscal fourth quarter ended Jan. 31. In the previous year, it lost $51.7 million, or 90 cents, on revenue of $325.4 million.

For the fiscal year, the company reported earnings of $18 million, or 30 cents a share, on revenue of $1.52 billion. In the previous year, it lost $53.2 million, or 92 cents, on revenue of $1.14 billion.

Encouraged by that progress, management at the Carpinteria, Calif., restaurateur said it was formulating plans for “prudent new-unit growth” this year. Also, about 50 Carl’s Jr. restaurants will be remodeled to test changes in signage and other aspects of their look.

On the marketing front, celebrity Paris Hilton will appear in advertising for a $6 spicy barbecue burger at Carl’s Jr. next month and in the summer will promote other products at the Hardee’s chain, management said Tuesday.

Chief Financial Officer Ted Abajian said beef costs were expected to remain volatile. “We’ve been able in the past to pass on input increases to customers and feel very comfortable that we can continue to do that,” he said.

CKE said development plans for fiscal 2006 included 15 to 20 company-owned Carl’s Jr. and 10 to 12 company-owned Hardee’s units. At quarter’s end there were 1,014 Carl’s Jr. and 2,034 Hardee’s restaurants. The company also has 101 La Salsa Fresh Mexican Grills.

CKE also initiated a quarterly dividend of 4 cents, payable June 13 to shareholders of record May 23.

The company’s shares fell 66 cents to $14.86 on the New York Stock Exchange.