San Diego Business Journal

Jack in the Box Net Income Slips as Same-Store Sales Grow

Friday, February 24, 2012

Jack in the Box Inc. recently reported net income of $12 million, or 27 cents per diluted share, for its first quarter, down from $32.4 million and 61 cents per diluted share in the like quarter of 2011.

Total revenue for the 16 weeks ended Jan. 22 was $652.7 million, compared with $664.7 million in the like quarter of 2011.

The company said same-store sales rose 5.3 percent in the quarter. However, food and packaging costs were 1.1 percent higher than in the prior year’s first quarter, while overall commodity costs increased 8 percent in the quarter.

Sixteen new restaurants, including 11 franchised locations, opened in the first quarter, bringing the number of Jack in the Box restaurants to 2,236. That includes 1,602 franchised locations and 597 Qdoba restaurants, the company’s Mexican food purveyor.

Jack in the Box forecast its same-store sales to increase 4 to 5 percent in the second quarter, and by 3 to 4 percent for the full fiscal year.

The company said annual diluted earnings per share should finish in a range of $1.15 to $1.43 per share, with the final outcome dependent on the timing of anticipated refranchising store sales, same-store sales, and commodity inflation.

— Mike Allen