News

Jack in the Box redesign lifts traffic, check averages

May 17, 2012

Jack in the Box Inc. reported a profit of $21.6 million for the second quarter ended April 15, compared to $6.8 million for Q2 2011.

Specifically, Jack in the Box's same-store sales were up 5.6 percent in the quarter, while Qdoba's systemwide same-store sales jumped 3 percent.

Linda A. Lang, chairman and chief executive officer, attributed Jack in the Box's successful quarter to traffic growth and average check growth.

"We believe these results have been largely driven by the investments we have made to enhance the entire guest experience at the Jack in the Box brand, including the substantial completion of our systemwide re-image program in January," Lang said.

Broken down by segment

For Q2 2012, Jack in the Box company-owned same-store sales increased 5.6 percent, compared to 0.8 percent during the same period last year. Through the fiscal year thus far, same-store sales are up 5.5 percent, versus 1.2 percent last year.

The franchised system experienced a 3.6 percent jump in sales, versus -0.3 percent last year.

Company-owned Qdoba sales are up 3.8 percent in the quarter, compared to 5.1 percent during Q2 2011. For the fiscal year thus far, Qdoba's company-owned stores are up 3.7 percent, versus 5.5 percent for the first two quarters last year.

In the franchised system, Qdoba is up 3 percent compared to 6 percent for Q2 2011.

"Importantly, company restaurant operating margin at Qdoba improved substantially during the quarter," Lang said.

Restaurant openings

Seven new Jack in the Box restaurants opened in the second quarter, including three franchised locations, compared with eight new restaurants opened systemwide during the same quarter last year, of which six were franchised.

In the second quarter, eight Qdoba restaurants opened, including six franchised locations, versus 10 new restaurants in the year-ago quarter, of which five were franchised.

As of April 15, 2012, the company's system total comprised of 2,242 Jack in the Box restaurants, including 1,641 franchised locations, and 605 Qdoba restaurants, including 316 franchised locations.

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