On June 26, CKE Restaurants
- Earnings per share came in ahead of estimates, even after accounting for stock-based compensation of $1.8 million.
- This is the fourth quarter in a row where both gross margin and operating margin increased.
- The increased tax expense of $10.8 million was mostly covered by use of the deferred tax asset.
- Get one Fool's take on CKE's latest quarter.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|---|
Sales |
$485.2 |
$488.6 |
$465.9 |
4.9% |
Net Profit |
-- |
$16.2 |
$16* |
1.1% |
EPS** |
$0.21 |
$0.23 |
$0.24* |
(4.2%) |
Diluted Shares |
73.2 |
73.7 |
(0.7%) |
**Includes after tax interest expense adjustment
Get back to basics with a look at the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin** |
71.4% |
70.90% |
0.50 |
Operating Margin |
6.88% |
4.97% |
1.91 |
Net Margin |
3.31% |
3.43% |
(0.12) |
**Food and packaging costs divided by company restaurant sales
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$22.9 |
$20.0 |
14.2% |
Accounts Rec. |
$31.8 |
$32.8 |
(2.8%) |
Inventory |
$22.6 |
$21.6 |
4.7% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$62.1 |
$60.3 |
3.1% |
Long-Term Debt |
$210.5 |
$227.5 |
(7.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$47.0 |
$39.9 |
17.7% |
Capital Expenditures |
$34.6 |
$25.2 |
37.3% |
Free Cash Flow |
$12.4 |
$14.7 |
(15.6%) |
Find out why Fools always follow the money.
Related Companies:
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Burger King Holdings
(NYSE:BKC) -
McDonalds
(NYSE:MCD) -
Wendy's
(NYSE:WEN) -
Yum! Brands
(NYSE:YUM)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Jim Mueller had no position in any company mentioned. Fool rules are here.