CKE reports 3Q net loss despite positive sales
CKE Restaurants Inc. swung to a loss in the third quarter despite upward sales trends for both its Carl’s Jr. and Hardee’s quick-service brands, the company said Tuesday.
For the quarter ended Nov. 7, blended same-store sales at company-owned stores for the two brands increased 1.9 percent, reflecting an increase of 2 percent for Carl’s Jr. and 1.8 percent for Hardee’s.
It was the third consecutive quarter of positive same-store sales for Carl’s Jr. and the sixth for Hardee’s, said Andrew Puzder, CKE chief executive. He added that positive trends have continued into the first few weeks of the fourth quarter.
Revenue was up 2.8 percent during the quarter to $292.6 million.
However, the company reported a net loss of $1.5 million for the quarter, compared with a $45,000 profit for the same quarter a year ago.
CKE saw a significant increase in food and packaging costs, particularly due to higher commodity prices for beef, oil and cheese, the company said.
At the end of the quarter, the company operated or franchised 1,292 Carl’s Jr. and 1,917 Hardee’s restaurants.
Previously a public company, Carpinteria, Calif.-based CKE last year was acquired by an affiliate of investment firm Apollo Management VII LP.