Karcher Reports Record Earnings, Sales for Year
Carl Karcher Enterprises reported record earnings and sales for fiscal 1988, posting a $16-million profit for the year after losing $7.1 million in fiscal 1987.
Revenues for the fiscal year ended Jan. 25 rose to $369.5 million, up 16% from $317 million in fiscal 1987.
For the fourth quarter, the Anaheim-based operator of the Carl’s Jr. fast-food chain reported net income of $4.2 million, contrasted with a net loss of $11.3 million in the same period a year earlier.
Revenues for the fourth quarter were $88.7 million, up 16% from $76.5 million in the year-ago quarter.
‘Banner Year’
The results reflect Karcher’s success in turning the company around over the past year. “Fiscal 1988 has been a banner year for Carl Karcher Enterprises,†said Donald F. Karcher, president and chief operating officer. “The company’s real growth--sales increases adjusted for menu price increases--was 14% for the year. The real growth was even higher in remodeled restaurants.â€
The company’s fiscal 1988 earnings included a one-time tax benefit attributable to losses associated with the sale of underperforming restaurants in 1987.
Karcher said the company’s “positive momentum in sales and earnings is continuing into fiscal 1989.â€
Karcher Enterprises owns or franchises 449 Carl’s Jr. restaurants in four states.
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