UPDATE 1-Quarterly profit down at Carl's Jr parent CKE

Wed Dec 10, 2008 5:39pm EST
 
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* CKE Restaurants Q3 EPS 10 cents, matches Wall St view

* Company-owned same-store sales up 0.9 pct

* Shares flat in after-hours trade

LOS ANGELES, Dec 10 (Reuters) - CKE Restaurants Inc (CKR.N), the parent of Carl's Jr and Hardee's, on Wednesday posted a lower quarterly profit as higher costs bit into profits and the weak economy softened sales at established restaurants.

The company, known for its oversized hamburgers, reported fiscal third-quarter net income of $5.4 million, or 10 cents per diluted share, matching analysts' average estimate, according to Reuters Estimates.

In the quarter ended Nov. 5, 2007, CKE had net earnings of $6.2 million, or 11 cents per diluted share.

Carpinteria, California-based CKE said sales at established company-operated restaurants rose 0.9 percent during the quarter, down from the year-earlier quarter's increase of 1.7 percent.

Sales at company-owned Carl's Jr stores open at least 13 months rose 0.5 percent, while sales at CKE-owned Hardee's restaurants were up 1.3 percent.

"The ongoing financial crisis continues to place unprecedented pressure on consumers," CKE Chief Executive Andrew Puzder said in a statement.

Total revenue was $336.6 million, down 4.3 percent from a year earlier. Revenue from company-operated restaurants fell 6.5 percent to $255.5 million.

CKE shares closed up 8.3 percent to $8.66 on the New York Stock Exchange and were unchanged after hours. (Reporting by Lisa Baertlein; Editing by Bernard Orr)

 

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