CKE Earnings Increase 1.1%

CKE Restaurants Inc., the Carpinteria-based operator of the Hardee’s and Carl’s Jr. fast-food chains, said Monday that its profit rose 1.1% in a fiscal first quarter weighed down by an increase in tax expenses.

CKE earned $16.2 million, or 23 cents a share, compared with $16 million, or 24 cents, a year earlier, in the quarter ended May 22. Revenue grew 5% to $488.6 million, the company said.

The 2006 quarter’s results included $1.8 million in pretax stock-option expenses, CKE said.

Analysts polled by Thomson Financial had expected earnings of 21 cents a share, including stock-option expenses.

CKE executives said the quarter’s results included $10.8 million in income tax expenses, including $10 million in deferred income taxes, compared with $600,000 in income tax expenses a year earlier.

Same-store sales at company-owned Hardee’s and Carl’s Jr. restaurants rose 5.6% from a year earlier. Same-store sales are a closely watched performance gauge measuring sales at locations open at least a year.

CKE shares closed up 23 cents at $16.15 before the earnings announcement.