CKE Restaurants Shares Slip After Earnings

CARPINTERIA, CALIF. (TheStreet) -- While CKE Restaurants' (CKR Quote) second-quarter profit remained about flat, sales tumbled below Wall Street's expectations, sending the company's shares sinking in after-market trading Wednesday evening.

In the quarter, CKE's profit fell less than 1% to $12.3 million, or 22 cents a share, compared with $12.3 million, or 23 cents, in the year-ago period, in line with analysts' estimates.

But revenue slipped 5% to $336 million from $352 million, missing forecasts of $341 million. Total same-store sales declined 4.6%, off 6.1% at Carl's Jr. and 2.7% at Hardee's.

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Shares decreased nearly 7% in after-market trading on Wednesday to $10.50, but the stock rallied before the bell on Thursday, changing hands recently at $11.28.

Rival Sonic(SONC Quote) also said on Thursday that its fiscal 2010 profit will climb between 10% and 12%, receiving a boost from lower commodity costs and interest expense.

The company has not released guidance yet, but plans to do so on Oct. 20.

-Reported by Jeanine Poggi in New York.

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