News

Jack in the Box Q2 buoyed by breakfast, late-night dayparts

May 16, 2014

Jack in the Box Inc. reported earnings from continuing operations of $18.3 million, or $0.43 per diluted share, for Q2, compared to $15.1 million, or $0.33 per diluted share, for the same period last year.

CEO Lenny Comma said in a press release that these results were solid, and included a 38-percent increase in operating earnings per share driven by better-than-expected same-store sales growth at Qdoba, margin expansion and lower overhead. Qdoba’s same-store sales were up 7.2 percent at company-owned restaurants, and 6.8 percent at franchised units.

These results helped overcome a “shortfall in sales” at Jack in the Box, which was affected by increased value promotions from its competitors. Jack in the Box’s same-store sales were still positive, up 0.9 percent at company stores and 0.6 percent at franchised units.

“Jack in the Box company same-store sales increased 0.9 percent for the quarter, as sales trends softened in the last half of the quarter, when we saw an increase in messaging around value promotions from our competitors,” Comma said. “Importantly, both late-night and breakfast dayparts remained strong, and sales have rebounded through the first four weeks of our third quarter.”

He added that while sales were below expectations, the brand’s 0.7 percent exceeded the general QSR sandwich category by 1.2 percent in the same period. 

Initiation of cash dividend

Also this week, Jack in the Box Inc. announced the approval of the initiation of a regular quarterly cash dividend. The initial quarterly cash dividend of $0.20 per share will be paid on June 9, to shareholders of record as of May 27. Future dividends will be subject to board approval.