Jack in the Box Q2 earnings tumble 39%
SAN DIEGO, Calif. – Jack in the Box second-quarter profits declined 39 percent on lower sales. For the quarter ended April 14, 2013, the company's net profit was $13.4 million or 30 cents per diluted share from $21.6 million, or 48 cents per diluted share in the second quarter of fiscal 2012.
Revenues eased 3 percent to $355.6 million.
Same-store sales climbed 0.9 percent at company-owned restaurants and eased 0.2 percent at franchise locations. Same-store sales at company-owned Qdoba Mexican Grill restaurants declined 2 percent, while franchise locations reported a decline of 0.9 percent in same-store sales.
“Jack in the Box company same-store sales increased 0.9 percent during the quarter, accelerating in the last two months of the quarter after a slow start, which we attributed to pressures on consumer spending due to higher payroll taxes, delayed tax refunds and the rapid increase in gas prices in the last part of January and first half of February, said Linda Lang, chairman and CEO. “Jack in the Box system same-store sales growth for the quarter exceeded that of the QSR sandwich segment by 1.9 percentage points for the comparable period, according to The NPD Group’s SalesTrack Weekly for the 12-week time period ended April 14, 2013. Included in this segment are 15 of the top QSR sandwich and burger chains in the US. And on a weekly basis, the brand outperformed the segment for 11 out of the 12 weeks.
“Qdoba same-store sales in the second quarter decreased 2.0 percent for company restaurants, and were adversely affected by more severe winter weather in the quarter than last year, which we believe resulted in approximately 150 basis points of unfavorable impact,” she added.
For the third quarter, the company expects same-store sales to increase approximately 1-3 percent at Jack in the Box company restaurants compared to a 3.4 percent increase in the year-ago quarter. Same-store sales at Qdoba are expected to be flat at company restaurants compared to a 3.3 percent increase in the year-ago quarter.
For the year, same-store sales are expected to increase approximately 1.5-2.5 percent at Jack in the Box company restaurants, while same-store sales at Qdoba are expected to be flat to 1 percent higher at company restaurants.
Overall commodity costs are expected to increase by approximately 2-2.5 percent, and restaurant operating margin for the full year is forecast at approximately 16 percent, depending on same-store sales and commodity inflation, according to the company.
The company operates 2,256 Jack in the Box restaurants, including 1,710 franchised locations, and 647 Qdoba restaurants, including 307 franchised locations.