Jack in the Box Inc. announced Wednesday that its fiscal Q3 revenue finished ahead of estimates, at $523 million, but was still short of expectations and down 9.4 percent from the same period in 2009.
On the other hand, Qdoba Mexican Grill, a Jack in the Box Inc. chain, experienced a 4.6 percent rise in same-store sales from 2009.
Linda A. Lang, chairman, chief executive officer and president, attributed Qdoba's growth to its Craft 2 menu, higher catering sales and an increase in spending within the fast casual segment.
For the full year, Jack in the Box cut its profit forecast to $1.65 to $1.75 per share, down from May's prediction of $1.85 to $2.05 per share.
Third quarter results were adversely impacted by several factors, including impairment charges ($2.6 million), market-to-market adjustments on investments (including the company's non-qualified retirement plans), an insurance recovery from Hurricane Ike ($2 million), an increase in workers' compensation reserves, deferred financing costs in refinancing existing indebtedness ($500,000) and a decrease in same-store sales (9.4 percent) compared to 2009.
Another potential factor is the rise in food and packaging costs, which are approximately 2 percent higher this year. The company also plans to re-image its restaurants by the end of 2001.
