For Immediate Release
Chicago, IL – September 18, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CKE Restaurants, Inc. (CKR), McDonald’s Corporation (MCD), Burger King Holdings (BKC), Yum! Brands (YUM) and Chipotle Mexican Grill (CMG).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
CKE Profit Slides Marginally
CKE Restaurants, Inc. (CKR) recently reported second-quarter 2010 results amid a crumbling economy, plagued by rising unemployment and waning consumer discretionary spending.
The operator of Carl’s Jr. and Hardee’s fast food chains’ second quarter profit slid less than a percent despite a mid-single digit decline in the top-line. Effective cost management and lower commodity prices helped offset sluggishness in sales.
Net profit for the quarter under review fell 0.7% year-on-year to $12.3 million. However, excluding mark-to-market adjustments, net profit climbed 2.8% to $11.6 million.
CKE Restaurants’ quarterly earnings of 21 cents a share (excluding mark-to-market adjustments), missed the Zacks Consensus Estimate by a penny, but increased 5.0% from 20 cents reported in the year-ago quarter. On a reported basis, earnings came in at 22 cents a share, down 4.3% from 23 cents reported in the prior-year quarter.
The fast-food operator continues to experience a falling top-line. After declining 4.2% in the first quarter of 2010, total revenue tumbled 4.7% to $336 million in the reported quarter dragged down by a fall in same-store sales. Company-operated restaurants sales dropped 3.5% to $257.8 million, whereas franchise and licensed restaurant sales dipped 8.5% to $78.2 million.
The weak economy continues to hurt same-store sales, which fell 4.6% compared to an increase of 3.6% in the year-ago quarter. Same-store sales at the company’s restaurant concepts, Carl’s Jr. and Hardee’s restaurants, fell 6.1% and 2.7%, respectively.
Despite the downtrend, CKE Restaurants’ company-operated restaurant-level margin remained flat at 19.3% compared to the prior-year quarter, favorably impacted by lower commodity costs for beef, cheese and oil products.
However, CKE Restaurants and other fast-food chains, like McDonald’s Corporation (MCD), Burger King Holdings (BKC), Yum! Brands (YUM) and Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as cash-strapped consumers are trending towards lower-priced dining options.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
