CKE restates earnings because of math error

CARPINTERIA Calif. CKE Restaurants Inc. said it would restate its financial results for the fiscal year 2006, ended Jan. 30, 2006, because of an "inadvertent computational error" that overstated the company's income tax benefit and its resulting net income by $16 million. CKE is the operator or franchisor of 3,113 restaurants under the Carl's Jr., Hardee's and La Salsa Fresh Mexican Grill brands.

The company's previously reported $137 million income tax benefit should have been reported as $121 million, the company said. As a result, CKE's previously reported annual net income of about $195 million should be reduced by $16 million, to $179 million. The adjusted net income still represents a significant increase from year-earlier, fiscal 2005 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."