Despite its much-ballyhooed "back-to-basics" strategy, Carl Karcher Enterprises Inc. said Thursday that sales and net earnings during the fiscal second quarter and six months ended Aug. 11 were essentially flat compared to a year ago.
The Anaheim-based operator of the Carl's Jr. fast-food restaurant chain reported net earnings of $1.54 million during the quarter, up 3% from $1.49 million. However, investment income on Karcher's $45 million in cash accounted for the bulk of the earnings: $1.4 million.
Revenue during the quarter fell 2% to $76.1 million from $77.5 million.
For the six months, net earnings rose 5% to $2.4 million from $2.3 million on the strength of investment income. In the latest six months, investment income totaled $6 million, up from $2.5 million in the year-earlier period.
Revenue for the period was $166.6 million, down 5% from $174.6 million a year earlier.
Loren Pannier, Karcher's chief financial officer, said the drop resulted from sales that were lost to the company when outlets were franchised during the last year. Actual product sales during the quarter were up slightly to $81.7 million from $80.3 million, "so it's a different mix," he said.