CKE Restaurants (CKR) Profits Climb As Revenue Drops
March 24, 2010 5:53 PM
CKE Restaurants, Inc. (NYSE: CKR) reported mixed results on Wednesday, when the company announced that profits jumped as revenue fell.
CKE Restaurants, which operates the Carl's Jr and Hardee's fast food chains, profits were up because of a $9.9 million tax benefit and a 4% drop in operating expenses to $300.3 million.
The company reported earnings of $15.4 million, or 28 cents per share, up from $2.6 million, or 5 cents per share, a year earlier.
Excluding items, CKE Restaurants' earnings came in at 30 cents per share.
However, revenue fell 5% to $311.7 million. The company blamed high unemployment rates in key markets like California on the lower sales.
According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 6 cents per share, on revenue of $312.13 million.
