News
Jack in the Box sees small net gain for Q2
May 13, 2009
SAN DIEGO — Jack in the Box Inc. has reported same-store sales at company restaurants were up 0.4 percent for the second quarter ended April 12, compared to a decline of 0.1 percent last year. Same-store sales remained positive in California, Texas and Las Vegas, and although still negative in Phoenix, same-store sales continued to improve versus the prior quarter.
Systemwide same-store sales at Qdoba Mexican Grill were down 2.3 percent for the second quarter compared to a 2.4 percent increase last year, as the economic environment continued to pressure consumer spending at restaurants with higher check averages and negatively impacted catering sales at Qdoba.
"We're pleased that, despite the continued recessionary environment, the Jack in the Box brand achieved positive comparable sales growth during the quarter while the company delivered strong sequential improvement in consolidated restaurant operating margin," said Linda A. Lang, chairman and chief executive officer for Jack in the Box.
Revenue for the quarter was down 1.6 percent to $578.4 million compared to $588 million in the same quarter last year. Year to date, revenue was down 0.7 percent at $1.35 billion compared to $1.36 billion last year.
Net earnings for the quarter were up 4.4 percent to $29.9 million compared to $26.2 million in the same quarter last year. Year to date, net income was down 6.7 percent at $58.3 million compared to $62.5 million last year.
As previously announced, in September 2008 the company's board of directors approved plans to sell its Quick Stuff convenience stores.
Refranchising
The company's refranchising efforts continued on pace with its expectations despite the tight credit markets. The company sold 46 company-operated Jack in the Box restaurants to franchisees during the quarter, and the Jack in the Box system is now 41 percent franchised versus 35 percent a year ago. The company remains on track to achieve its long-term goal to increase the percentage of franchise ownership in the Jack in the Box system to 70 percent to 80 percent by the end of fiscal year 2013.
At the end of the second quarter, the company's systemwide total was comprised of 2,186 Jack in the Box restaurants, including 894 franchised locations, and 484 Qdoba restaurants, including 342 franchised locations.
Earnings call
The company will host a conference call for financial analysts and investors May 14 beginning at 8:30 a.m. Pacific time (11:30 a.m. Eastern). The conference call will be broadcast live over the Internet via the Jack in the Box Web site. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. Web site atinvestors.jackinthebox.comat least 15 minutes prior to the event in order to download and install any necessary audio software.
A replay of the call will be available through the conference-call link on the Jack in the Box home page for 21 days, beginning at approximately 11:00 a.m. Pacific time on May 14.
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