Carl Karcher Enterprises' new "back to basics" theme and reduced food prices boosted its customer count by 13% in the past quarter, but earnings and revenue for the 448-restaurant chain remained depressed in a year-to-year comparison.
On Tuesday, the Anaheim-based fast food chain posted fiscal 1986 second-quarter earnings of $1.5 million, down 65% from $4.3 million a year earlier. Revenues for the 12 weeks ended Aug. 9 were $77.7 million, down 5.5% from the $82.2 million posted in the same period a year ago. Net earnings for the first half of fiscal 1986 were $2.3 million, down almost 74% from the $8.8 million posted a year ago. Revenues for the six months were $174.6 million, down 4% from $181.8 million a year earlier.
In a statement issued Tuesday, Karcher Enterprises President Donald Karcher said the company's second-quarter earnings "are of greater significance to the future of Carl's Jr." when compared to the company's first-quarter performance than in a conventional year-to-year comparison.
In the first quarter, Karcher reported net earnings of $811,000 and revenue of $97 million. The company's second quarter results show an 85% increase in profits, but a 20% drop in revenue. Karcher officials said that although the number of customers has increased, revenues have dropped because each customer is spending less.