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Jack in the Box, Qdoba report strong Q3

Jack in the Box and Qdoba reported a strong Q3.

August 11, 2015

Jack in the Box Inc. reported a 17-percent increase in operating earnings per share, continuing operations of $28.4 million or 75 cents per diluted share for the third quarter ended July 5, 2015. Earnings from continuing operations were $26.1 million or 64 cents per diluted share over the same period last year.

"We’re pleased with our third-quarter performance, which culminated in a 17-percent increase in operating earnings per share, resulting from solid same-store sales growth and margin expansion at both Jack in the Box and Qdoba Mexican Grill," said Lenny Comma, chairman and chief executive officer. "We continued to use our growing free cash flow to return cash to shareholders, and recently amended our credit facility to provide us with more than $400 million of additional borrowing capacity to support our strategic priorities."

He also said Jack in the Box system same-store sales increased 7.3 percent for the quarter, and company same-store sales increased 5.5 percent.

"Transactions drove approximately 30 percent of the company growth, and sales were strong across all dayparts, with breakfast and dinner the best performing, followed closely by late night," he said.

Jack in the Box system same-store sales growth exceeded that of the QSR sandwich segment by 5.5 percentage points for the comparable period, according to The NPD Group’s SalesTrack Weekly for the 12-week time period ended July 5, 2015. Included in this segment are 16 of the top QSR sandwich and burger chains in the country, according to the company.

"Qdoba same-store sales increased 7.7 percent system-wide and 6.6 percent for company restaurants in the third quarter, as the simplified menu pricing structure continued to drive average check growth. Our company performance also benefited from another quarter of double-digit growth in catering sales," Comma said. "Although transactions at company restaurants declined 1.1 percent for the quarter, on a two-year basis, transactions grew 1.6 percent, representing an acceleration from the previous two quarters."