CKE Restaurants Inc., which owns the Carl's Jr. and Hardee's hamburger chains, said Tuesday that its fiscal third-quarter profit dropped 40% as a hefty income tax expense offset sales growth.
Net income declined to $9.5 million, or 13 cents a share, from $15.8 million, or 23 cents, a year earlier, the Carpinteria, Calif.-based company said. Income taxes surged to $10.1 million, or 14 cents a share, from $570,000, or 1 cent, a year earlier.
Revenue grew to $364.9 million from $344.1 million a year earlier, helped by growth at company-operated, franchised and licensed restaurants. Sales at stores open at least a year, a key measure of retail health, rose 6.2% at Carl's Jr. and 5.6% at Hardee's. On average, analysts surveyed by Thomson Financial forecast earnings of 16 cents a share and sales of $362.6 million.
CKE shares rose 4 cents to $18.86 in regular trading and fell to $18.60 in extended trading after the announcement.