After settling a class action employment lawsuit brought by restaurant managers seeking unpaid overtime (see blog entry on August 9), CKE Enterprises, Inc. (franchisor of Hardee's, LaSalsa, and Carl's Jr.'s restaurant chains) reported an $11.4 million loss, according to Nation's Restaurant News. The loss represented a $7 million charge related to the class action settlement and a $12.5 million pre-payment penalty for the retirement of corporate debt. Without these charges, the company would have earned $10.8 million with a 6% increase in revenue and an 8.1% increase in same store sales. A copy of CKE's most recent 10-Q is found here.
Posted by franchiselawblog at September 15, 2004 04:30 PM