CKE restates, reduces '06 net income by $16m due to error

Nation's Restaurant News,  March 12, 2007  

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Carpinteria, Calif. -- CKE Restaurants Inc. said it would restate financial results for the fiscal year that ended Jan. 30, 2006, because of an"inadvertent computational error" that overstated CKE's income tax benefit and its resulting net income by $16 million.

CKE, operator or franchisor of 3,113 restaurants under the Carl's Jr., Hardee's and La Salsa Fresh Mexican Grill brands, said its previously reported $137 million income tax benefit for the affected year should have been reported as $121 million. As a result, annual net income for that year, previously stated as about $195 million will be reduced by $16 million, to $179 million.

The adjusted net income still represents a substantial increase from the prior year's net income of $18 million.

CKE said it had not found "any evidence that the restatement is due to any material noncompliance by the company."

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