Same-store sales rose at Jack in the Box Inc.’s namesake and Qdoba Mexican Grill concepts during the fourth quarter on growth in the breakfast and late-night dayparts, the company said Tuesday.
Systemwide same-store sales at Jack in the Box increased 3.1 percent during the quarter ended Sept. 28, better than the company expected.
Sister brand Qdoba outshined Jack in the Box with a 7.7-percent systemwide same-store sales increase, reflecting less discounting and double-digit growth in catering sales, the company said.
The company’s net income fell nearly 30 percent during the quarter, in part due to $5.8 million, or about 10 cents per share, in losses related to the sale of 23 Jack in the Box restaurants in two markets in the Southeast during the quarter.
Adjusting for one-time charges, earnings from continuing operations were $17.4 million, or 44 cents per share, a 28-percent decrease from $24.1 million, or 54 cents per share, a year ago.
Full-year earnings from continuing operations totaled $94.8 million, or $2.26 per share, compared with $82.6 million, or $1.84 per share, in fiscal 2013.
Qdoba expects its momentum to continue into 2015. In its guidance, the company said it projects same-store sales to be in the 8 percent to 10 percent range for corporate locations during the first quarter. At Jack in the Box corporate units, same-store sales are projected to increase 1 percent to 2 percent.
For corporate locations in fiscal 2015, Qdoba expects same-store sales to be between 6 percent to 8 percent, while Jack in the Box comps are expected to range between 1.5 percent to 2.5 percent.
Overall commodity costs are expected to increase 3 percent for the full year, with higher inflation during the first two quarters.
In fiscal 2015, the company expects to open 10 to 15 new Jack in the Box units, along with 50 to 60 new Qdoba locations. About half of the latter will be company owned.
Jack in the Box ended fiscal 2014 with 2,250 Jack in the Box locations and 638 Qdoba units.
4Q NET INCOME
Result: $16 million, or 41 cents per share% Decrease: 29% (from $22.8 million, or 53 cents per share)
4Q REVENUE
Result: $344.7 million% Increase: 2% (from $338 million)
4Q SAME-STORE SALES
% Increase Jack in the Box systemwide: 3.1%
% Increase Jack in the Box corporate units: 3.1%
% Increase Jack in the Box franchised units: 3.1%
% Increase Qdoba systemwide: 7.7%
% Increase Qdoba corporate units: 7.1%
% Increase Qdoba franchised units: 8.4%
Source: Company report
FULL YEAR NET INCOME
Result: $88.9 million, or $2.18 per share% Increase: 74% (from $51.2 million, or $1.18 per share)
FULL YEAR REVENUE
Result: $1.484 billion% Decrease: 0.4% (from $1.489 billion)
FULL YEAR SAME-STORE SALES
% Increase Jack in the Box systemwide: 2%
% Increase Jack in the Box corporate units: 2%
% Increase Jack in the Box franchised units: 2%
% Increase Qdoba systemwide: 6%
% Increase Qdoba corporate units: 5.7%
% Increase Qdoba franchised units: 6.3%
Source: Company report
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Contact Lisa Jennings at [email protected].
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