CKE Quarterly Profit Rises on Tax Benefit
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Hamburger chain operator CKE Restaurants Inc. reported dramatically higher quarterly earnings Thursday due to a one-time tax benefit.
Net income for the fourth quarter ended Jan. 31 rose to $154.3 million, or $2.14 a share, from $7.1 million, or 12 cents, a year earlier. Those results include a $139-million tax benefit.
Excluding one-time items, CKE, operator of the Carl’s Jr. and Hardee’s chains, earned 22 cents a share.
On that basis, Wall Street analysts had expected the company to report earnings between 16 cents and 19 cents a share, with an average view of 18 cents a share, according to Reuters Estimates.
Revenue fell 3.7% to $348.5 million. The company attributed the decrease to the fact that the fourth quarter was a week shorter in 2006 than it was last year.
Same-store sales in the quarter rose 5.3% at company-operated Carl’s Jr. restaurants and 2.9% at Hardee’s restaurants compared with a year earlier.
Shares of CKE closed up 26 cents, or 1.5%, at $18.04.
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