Restaurant chain CKE Restaurants, Inc.(CKR), Wednesday announced second-quarter financial results, reporting a profit that edged down from the same quarter last year, due to a drop in revenues. The company reported a drop in blended same store sales for period eight as same store sales of the Carl's junior and Hardee's brand declined reflecting a troubled economy, as well as continuing pressure from a competitive landscape. Following the announcements, the stock lost 6.65% in the after hours trade on the New York Stock exchange.
Carpinteria, California-based CKE Restaurants' quarterly net income slipped to $12.25 or $0.22 per share from $12.34 or $0.23 per share in the same quarter a year ago. Excluding mark-to-market adjustments, earnings increased to $11.58 million or $0.21 per share from $11.27 million or $0.20 per share in the corresponding quarter last year.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the second quarter. Analysts estimate typically excludes special items.
Operating income for the quarter dropped to $22.17 million from $22.89 million in the same quarter last year.
Revenues for the quarter declined 4.7% to $335.97 million from $352.49 million in the same quarter last year, below Street estimates, as revenues from the franchised and licensed resultants as well as from the company operated restaurants plunged. The Street expected revenues of $340.87 million for the quarter.
Blended same store sales for the period eight was a negative 2.3%, down from a positive 0.4% last year, primarily due to decline in same store sales of Hardee's brand to a negative 1.3% from a positive 1.1% last year, as well as a drop in sales of Carl's junior brand to a negative 3.1% from a negative 0.1%. Year to date blended same store sales declined to a negative 3.0% from a positive 2.3%.
For the period eight, consolidated revenue for the combined brands totaled $83.5 million , marginally down from $85.8 million last year. Year to date total blended revenues came in at $684.3 million, down from $710.9 million last year.
For the second quarter, Carl's Jr. company-operated same-store sales declined 6.1% reflecting weaknesses in economy in California, while on a two year basis same-store sales dropped 2.3%. Hardee's same-store sales declined 2.7% and on a two year basis same-store sales dropped 0.6%.
Total average unit volume from company-operated restaurants for the period eight increased to $1.23 million from $1.21 million a year ago.
For the six-months period, net income declined to $26.65 million or $0.48 per share from $28.96 million or $0.53 per share in the same period a year ago.
Revenues for the period dropped to $782.77 million from $818.66 million in the same period last year.
CKR closed Wednesday's trading at $11.27, up $0.46 or 4.26%, on a volume of 1.115 million shares on the New York Stock Exchange. In after hours, the stock lost $0.75 or 6.65%, to trade at $10.52.
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