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Can Burger King's 'Brunch' Menu Take Bite out of McDonalds?

Burger King (BKC) is turning up the heat in its war with McDonalds (MCD) for early morning sales. In selected markets, Burger King is advertising the availability of a "Burger King brunch" in a quest to cash in on lucrative morning sales. This is only a few months after announcing Burger King will carry coffee made by Starbucks to provide a more flavorful alternative to its BK Joe coffee.

This is what the fast-food breakfast wars have become: Mimosas at the drive-thru window.

Continue reading Can Burger King's 'Brunch' Menu Take Bite out of McDonalds?

Before the Bell: Futures Dip Ahead of Bernanke Speech

U.S. stock futures dipped lower Wednesday morning ahead of a speech from Federal Reserve Chairman Ben Bernanke on economic challenges. Investors will also eye several financial results, as well as a Treasury auction in light of the recent focus on yields. Meanwhile, continuing and mounting concerns over Greece's and Europe's debt crisis weighed on markets.

On Tuesday, U.S. stocks finished mixed, with the Dow Jones Industrial Average remaining near 11,000. This was after minutes from the recent Fed policy meeting showed the phrasing "extended period" could mean vastly different periods depending on who's interpreting it.

Continue reading Before the Bell: Futures Dip Ahead of Bernanke Speech

Closing Bell: Wishy Washy with a Smile (AIG, ATHN, CKR, CROX, DECK, GPS, PALM)

Stocks started out strong in the early indication this morning but then went limp after economic data showed that perhaps housing isn't quite as robust as many were hoping and as University of Michigan's consumer sentiment was lower than expected. Today's wishy washy trading gave no real directional feel for the closing bell until the last 20 minutes of the day.

Here were today's unofficial closing bell levels:

Dow 10,324.89 +3.86 (0.04%)
S&P 500 1,104.51 +1.58 (0.14%)
Nasdaq 2,238.26 +4.04 (0.18%)

Top Analyst Upgrades/Downgrades
Top Day Trader Alerts
Top Stock & Market Rumors

Continue reading Closing Bell: Wishy Washy with a Smile (AIG, ATHN, CKR, CROX, DECK, GPS, PALM)

Earnings highlights: Nike, Oracle, Kroger, Walgreen, Monsanto, KB Home ...

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Nike, Oracle, Kroger, Walgreen, Monsanto, KB Home ...

CKE Restaurants beats expectations despite a 13% earnings drop

Restaurant operator CKE Restaurants (NYSE: CKR) reported first-quarter earnings of 26 cents per share after the closing bell yesterday. While the results were five cents shy of last year's results, they topped the consensus estimate by a penny per share. Quarterly revenue totaled $446.8 million, far better than the Street's estimate calling for $343.1 million.

The company also announced that same-store sales dropped 5.2% during the latest four-week period. At the company's Carl's Jr. restaurants, sales dropped 7.1%, while Hardee's saw a drop of 2.7%.

Continue reading CKE Restaurants beats expectations despite a 13% earnings drop

Earnings highlights: Costco, Kroger, Krispy Kreme, Lululemon, FedEx, P&G and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Costco, Kroger, Krispy Kreme, Lululemon, FedEx, P&G and others

CKE Restaurants' Q3 and comps not as juicy as the burgers

CKE Restaurants (NYSE: CKR), owner of the Carl's Jr. and Hardee's brands, reported earnings for the third quarter on Wednesday. The top line fell a little over 4%, coming in at $336.6 million. On a diluted basis, the bottom line cooked up $0.10 per share. That was a penny less than what was earned last year, but the company did manage to meet Wall Street's expectations.

Moving away from total sales and net income, let's look at the all-important same-store sales results. For the third quarter, comps for both CKE brands on a blended basis rose 0.9% according to the earnings release. An earlier press release focusing on same-store sales in November, had comps increasing by 0.3% on a blended basis. Year-to-date, blended comps moved 1.9% higher. When you compare these changes to their respective year-ago periods, you'll see that CKE isn't really doing gangbuster business.

I find neither the earnings numbers nor the sales figures particularly compelling. Management seems to think that the dreadful economic crisis we're facing is mostly responsible. Hey, it certainly isn't helping, and I sympathize with CKE's challenges during the credit crisis. Yet, I'd have to respectfully suggest that management get out there and get some hardcore marketing efforts going. When sales are down, you need to up the ante when it comes to branding and convincing patrons to come through your door. These comps are pretty weak and unattractive. They can be pushed higher with some innovative, creative campaigns.

Continue reading CKE Restaurants' Q3 and comps not as juicy as the burgers

Restaurant stocks are in the toilet: Is it time to buy?

With the economy in the toilet, a lot of people are reluctant to go and spend big on restaurant cuisine.

By itself that would be a good reason not to invest in restaurant companies. But restaurant stocks have been absolutely smoked of late, so you have to wonder how much of the bad news is already priced in. Take a look:
  • DineEquity (NYSE: DIN), parent company of IHOP and Applbee's: closed on Friday at $11.13, 83% off its 52-week high.
  • The Cheesecake Factory (NASDAQ: CAKE): closed Friday at $10.96, 56% off its 52-week high.
  • CKE Restaurants (NYSE: CKR), parent company of Carl Jr.'s and Hardee's: closed Friday at $8.88, 47% off its 52-week high.
  • Starbucks (NASDAQ: SBUX): closed Friday at $11.08, 59% off its 52-week high.
With very few exceptions, restaurant stocks have been pulvarized of late. It's true that the bad times may last awhile longer but in the grand scheme of things, a few quarters -- or even a few years -- of poor sales and earnings have very little bearing on the creation of long-term shareholder value. That is if a company is well-capitalized and has little leverage.

I think bargain hunters who buy and hold restaurant stocks trading at low price/earnings ratios with very little debt and strong brands will do quite well here.

One stock to avoid: DineEquity, which trashed its balance sheet with the Applebee's acquisition and may have to head back to the market to raise cash at the expense of current shareholders. The Wall Street Journal reports (subscription required) on unprecedented promotions and store closings for some leading chains.

With closings and consolidation, well-managed companies with good balance sheets should come out of this mess OK, and investors who get in at depressed prices should prosper.

Ads Gone Bad: Was Paris Hilton too spicy for Carl's Jr.?

This post is part of our Ads Gone Bad series. Share your thoughts and memories of this ad in the comments, and be sure to check out our other posts on marketing gone wrong.

In 2005, CKE Restaurants Inc. (NYSE: CKR) outraged both social conservatives and lovers of music at the same time when its Carl's Jr. chain hired Paris Hilton to shill its new Spicy Burger. It set a new standard of tastelessness that will be difficult to equal.

Conservatives -- most Americans actually -- find the fact that Paris Hilton is famous at all to be a offensive. Her main claim to fame comes from her appearance in a now-infamous sex tape. The appeal of her one-time hit show The Simple Life eluded me, but hey, I was not the target demographic. I am a 40-year-old married guy so I can't speak to her numerous other enterprises, such as the perfume Heiress. Her single "Stars Are Blind" was not as awful as I thought it would be, but maybe I have gone tone deaf listening to too many Elmo songs. Parents of toddlers will understand.

Continue reading Ads Gone Bad: Was Paris Hilton too spicy for Carl's Jr.?

Earnings highlights: RIM, Oracle, KB Home, Nike, Kroger, Walgreen and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: RIM, Oracle, KB Home, Nike, Kroger, Walgreen and others

More Wednesday earnings: Nike, CKE, Red Hat, General Mills, Bed Bath & Beyond

Here's a quick recap of some additional earnings reports on Wednesday.

Beaverton, Ore.-based Nike Inc. (NYSE: NKE) said strong growth overseas helped boost its fourth-quarter profit by 12% to $490.5 million, or 98 cents per share. Analysts polled by Thomson Financial expected the company to earn 96 cents per share for the quarter. Shares fell more than 5% in after-hours trading to $62.15.

CKE Restaurants Inc. (NYSE: CKR) said its first-quarter profit climbed 8% to $16.6 million, or 31 cents per share, helped by a small increase in same-store sales at Carl's Jr. restaurants. Revenue fell 3% to $466.2 million. Analysts polled by Thomson Financial expected profit of 27 cents per share on revenue of $465.5 million. Shares fell 5 cents to $12.25 in after-hours trading.

Red Hat Inc. (NYSE: RHT) said its fiscal first-quarter profit rose 6.6% to $17.3 million, or 8 cents per share. Adjusted earnings were 18 cents per share. Revenue rose 32% to $156.6 million. Analysts polled by Thomson Financial on average predicted a profit of 18 cents per share on revenue of $153 million. Shares fell 19 cents in after-hours trading to $22.11.

General Mills Inc. (NYSE: GIS) said its fourth-quarter profit dropped 17% to $185.2 million, or 53 cents per share. Adjusted earnings were 73 cents per share, which met Wall Street expectations. Sales increased 13% to $3.47 billion beating expectations. The company reaffirmed its guidance for the full year. Shares fell almost 2% to $61.19.

Continue reading More Wednesday earnings: Nike, CKE, Red Hat, General Mills, Bed Bath & Beyond

Earnings highlights: Adobe, ConAgra, Lennar, Oracle, Tiffany, Darden and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Also, auction-rate securities issues may hurt some tech company results. Analysts keep cutting earings estimates for the big banks, but some are eyeing Yum! Brands (NYSE: YUM) earnings prospects as it expands in China, as well as Archer Daniels Midland (NYSE: ADM) on soaring demand for commodities.

Upcoming results to watch for include Best Buy (NYSE: BBY), Monsanto (NYSE: MON), and Research in Motion (NASDAQ: RIMM).

Visit AOL Money & Finance for more earnings coverage.

CKE Restaurants doesn't impress with its Q4 report

CKE Restaurants (NYSE: CKR) reported earnings for the fourth quarter yesterday after the bell. Total revenue decreased 3% for the quarter, and net income from continuing operations was $0.00 per diluted share, which wasn't too good in comparison to last year's number, which was $0.17 per diluted share. Total revenue was flat for the year, and net income from continuing operations was $0.57 per diluted share versus $0.77 per diluted share in the previous fiscal year.

CKE Restaurants, which operates the Carl's Jr. and Hardee's brands, did not impress analysts, as earnings expectations for the quarter were missed by two pennies. I myself wasn't too impressed with the entire report. Same-store sales increased 0.9% at Carl's Jr. and 2% at Hardee's for 2007 -- I'm not going to jump up and down over that bit of news. In addition, costs are up because of inflationary pressures, and revenues have obviously been challenged. There's not a lot that I like about this story.

CKE's stock is certainly on the lower end of its 52-week range, but I can't say it is necessarily cheap; it closed yesterday at $12.45 -- the high for the year on the stock is $23.24. This is a situation that calls for an old standby: "There are better opportunities out there in this space." For me personally, if I'm looking at the burger business, I'm way more likely to consider a McDonald's (NYSE: MCD), a Burger King (NYSE: BKC), or a Wendy's (NYSE: WEN) before I entertain CKE as an investment idea. Although they don't do burgers (so far as I know), I'd even look at a Yum! Brands (NYSE: YUM) before CKE. These companies have better brand equities in my estimation. CKE may turn itself around, but I just wasn't impressed by my look at its data.

Disclosure: I own none of the companies mentioned here; positions can change at any time.

Cage match: How Alicia Silverstone whooped Paris Hilton with a hen

In the battle of the fast food restaurants, it's hardly ever about taste or service or quality: it's all about perception (and as my former car salesman boss says, perception is reality). So when I saw the news this week about how CKE Restaurants (NYSE: CKR) restaurants, Hardee's and Carl's Jr., have agreed to start purchasing a very small percentage of their pork and eggs from cage-free animals, I was wowed at the headlines. "Cage-free eggs!" an email from a colleague read.



Why is this the funnest news all month? Because of the very famous pin-up girls involved in the dispute. Paris Hilton is, after all, famous for her extremely sexy Carl's Jr. ads (I'd venture to say they are the pinnacle of her sordid career). Alicia Silverstone has made headlines with her racy PETA ads that were pulled off the air thanks to their nearly-naked nature. So in the cage match between Paris Hilton and Alicia Silverstone, I could have called it: smart Alicia whooped Paris' lingerie-clad booty with a (slightly happier) hen.

Continue reading Cage match: How Alicia Silverstone whooped Paris Hilton with a hen

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DJIA+6.5112,890.46
NASDAQ+11.372,927.23
S&P 500+1.991,351.95

Last updated: February 10, 2012: 07:22 AM

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