CKE Restaurants’ Stock Falls 10% in Wake of Storms
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Two hurricanes apparently have taken a bite out of CKE Restaurants Inc.’s stock.
The Anaheim-based company’s shares fell almost 10% Tuesday amid concern that the hurricanes cut sales more than expected at Hardee’s fast-food restaurants in North Carolina and along the Gulf of Mexico. Hardee’s is the company’s biggest chain, with almost 3,000 locations.
CKE shares fell $2.63 to $25 in trading of 1.29 million, more than double the three-month daily average volume. Earlier in the session, the shares had slipped to $23.
Sales at Hardee’s stores open more than a year may have fallen 8% in the third quarter, partly because hurricanes Georges and Bonnie kept away customers, said BancBoston Robertson Stephens analyst Andrew Barish. Hardee’s has 317 restaurants in North Carolina and 60 to 70 along the Gulf Coast.
Barish lowered his earnings estimates to 40 cents a share from 44 cents in the third quarter, and to 39 cents from 43 cents in the fourth. He still expects the company to earn $2.20 to $2.25 a share next year.
CKE also operates 745 Carl’s Jr. and 110 Taco Bueno restaurants.
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