Jack in the Box Inc. announced that its board of directors has authorized an additional $200 million stock buyback program commencing in fiscal year 2016 and expiring in November 2017.
According to the company, during fiscal year 2015, Jack in the Box repurchased approximately 3,743,000 shares at an average price of $84.71 per share, for an aggregate cost of $317.1 million, including $65.5 million in the fourth quarter of fiscal 2015. This completed a $100 million stock buyback program authorized by the company’s board in May 2015.
“Over the last five years, we have demonstrated our commitment to returning our growing free cash flow to shareholders through the purchase of $1 billion in stock and the initiation of a dividend in 2014," said Lenny Comma, chairman and chief executive officer. “The additional authorization coupled with the 50 percent increase in our dividend announced in May underscores the confidence both the management team and our board of directors have in our business model and growth plans. The amendment to our credit facility that was announced in July also provides us with more than $400 million of additional borrowing capacity to support our strategic priorities.”
San Diego-based Jack in the Box is a restaurant company that operates and franchises Jack in the Box restaurants, with more than 2,200 restaurants in 21 states and Guam. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill.