Jack in the Box 3Q earnings slip
Aug. 11, 2011
by Meat&Poultry Staff
SAN DIEGO – Jack in the Box Inc. announced net earnings of $18.7 million, or $0.38 per diluted share, for the third quarter ended July 10, compared with net earnings of $24.2 million, or $0.44 per diluted share, for the third quarter of fiscal 2010.
“Jack in the Box company same-store sales increased 4.7 percent in the third quarter, ahead of our expectations, driven by strong traffic growth and an increase in the average check,” said Linda Lang, chairman, CEO and president. “On a two-year basis, this represented our fourth-consecutive quarter of sequentially improving trends.
“Qdoba’s same-store sales momentum continued in the third quarter with an increase of 5.1 percent system-wide, driven by a combination of transaction growth, pricing and higher catering sales,” Lang said.
Food and packaging costs in the quarter were 210 basis points higher than the prior year. Overall commodity costs were approximately 6.5 percent higher in the quarter, driven by higher costs for beef, cheese, dairy, eggs and shortening.
The company repurchased approximately 2,993,000 shares of its common stock in the third quarter of 2011 at an average price of $21.65 per share. Through the first three quarters of fiscal 2011, the company has returned nearly $140 million to shareholders through the repurchase of approximately 6,469,000 shares of its common stock at an average price of $21.61 per share. As of the end of the third quarter, approximately $60 million remained available to repurchase stock under a board authorization that expires in November 2012.
Jack in the Box Inc. operates more than 2,200 restaurants in 19 states. Through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill, a leader in fast-casual dining, with more than 550 restaurants in 42 states and the District of Columbia.