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Jack in the Box 4Q profit rises 43%

Jack in the Box 4Q profit rises 43%

Executives say performance capped “a terrific year”

Jack in the Box Inc. reported Tuesday a 43-percent increase in net earnings for the Sept. 27-ended fourth quarter, capping what executives described as “a terrific year.”

Systemwide same-store sales for the quarter rose 6.2 percent for the quick-service Jack in the Box brand, including a 1-percent increase in transactions.

At fast-casual sister brand Qdoba Mexican Eats, same-store sales increased 6.6 percent, despite a 0.3-percent decline in transactions. The increase was fueled by the switch to a more simplified pricing structure that has driven average check growth, the company said.

Catering sales also grew by double digits for Qdoba during the quarter, Lenny Comma, the San Diego-based company’s chairman and CEO, said in a statement.

For the year, systemwide same-store sales rose 6.5 percent for Jack in the Box and increased 9.3 percent for Qdoba.

“This performance capped another terrific year, with operating earnings per share up approximately 22 percent, the fourth consecutive year of growth in excess of 20 percent,” Comma said.

Net earnings for the quarter were $23.1 million, or 63 cents per share, compared with $16.2 million, or 40 cents per share, a year ago.

For the year, earnings totaled $108.8 million, or $2.85 per share, compared with $88.9 million, or $2.12 per share, a year ago.

Revenue was $354.1 million for the quarter, rising from $344.7 million a year ago. For the year, revenue topped $1.54 billion, increasing from $1.49 billion the prior year.

Officials projected that same-store sales would increase between 1 percent to 3 percent at Jack in the Box company locations in the first quarter of 2016. For the full fiscal 2016 year, the company expects same-store sales for the namesake brand to range between 2 percent and 4 percent at company units.

For Qdoba company locations, the company expects same-store sales in the first quarter to be flat or up 2 percent, compared with a 12.9-percent increase in the first quarter this year.

For fiscal 2016, the company is projecting an increase of 2 percent to 4 percent for Qdoba company units.

Next year, the Jack in the Box chain expects to add about 20 new units, mostly franchised. Qdoba will add 50 to 60 new restaurants, about half of which will be company owned.

Jack in the Box Inc. ended the quarter and the year with 2,249 Jack in the Box restaurants and 661 Qdoba locations.

Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout

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