CKE’s Stock Climbs 14% as Rating Is Raised

CKE Restaurants Inc. shares rose 14% Monday as an analyst with Merrill Lynch & Co raised the rating on the fast-food chain operator’s stock.

CKE stock closed at $24.44, up $3. Anaheim-based CKE operates Hardee’s, Carl’s Jr. and Taco Bueno restaurants.

Chief Financial Officer Loren Pannier attributed the higher rating to an increased optimism about CKE’s ability to improve sales at Hardee’s, its biggest chain with almost 3,000 locations. “We’re continuing to see improvement in Hardee’s sales trends” in recent months, he said.

Merrill Lynch analyst Peter Oakes raised the near-term rating to “accumulate” from “neutral.” The long-term rating remained “accumulate.” Oakes could not be reached for comment.

Sales at Hardee’s outlets that have been open for at least a year had been declining since CKE bought the chain last year. On Nov. 3, the company’s shares dropped almost 10% amid fears that hurricanes in North Carolina and along the Gulf of Mexico might have hurt Hardee’s sales more than expected in those areas.