Jack in the Box Inc. (Nasdaq: JACK) on Thursday reported net earnings of $36.4 million on revenues of $357.8 million for the quarter that ended July 9, the third quarter of the company’s fiscal 2017, an improvement over the same third quarter in 2016 when the company reported $30.1 million on revenues of $368.9 million.
But Lenny Comma, CEO, said performance was below expectations. He said restaurant margins were negatively impacted by higher labor and repairs and maintenance costs and commodity inflation.
The company’s primary segment, its Jack in the Box restaurants, brought in $246.1 million in revenue, while its Qdoba Mexican Eats segment brought in $111.7 million. Revenues from Jack in the Box restaurants were down from $264.5 million in the same quarter the prior year; revenues from Qdoba eateries were up from $104.5 million a year ago, the company reported.
Jack in the Box said it is continuing to explore “potential alternatives” with respect to Qdoba.
Going forward, the company said it expected same-store sales to be flat or down 2 percent at Jack in the Box restaurants and at Qdoba restaurants in the next quarter compared to a 2 percent increase and a 1.2 percent increase in sales, respectively, in the same quarter a year prior.
By the end of its fiscal year 2017, Jack in the Box said it plans to open 20 to 25 new Jack in the Box restaurants and 45 new Qdoba restaurants.