SAN DIEGO — Despite a slight rise in same-store sales at company-owned restaurants, Jack in the Box Inc., parent company of Qdoba Mexican Grill, saw its net income fall about 23 percent for the first quarter ended Jan. 18, the company has announced. The company attributes the decline in earnings in part to an 8 percent increase in food and packaging costs and a 20 percent increase in beef costs.
Systemwide same-store sales at the company's fast casual brand Qdoba Mexican Grill decreased 1.1 percent in the first quarter versus a year-ago increase of 4.5 percent.
Consolidated company revenues for the quarter were $776.7 million, down 0.04 percent from $777 million in the same period last year. Net income was $28 million, compared to $36.3 million for the first quarter last year.
In the first quarter, 17 Qdoba restaurants opened, including 15 franchised locations, versus 25 new restaurants in the year-ago quarter, 21 of which were franchised. Three of the new franchised restaurants are located in new markets in Delaware and Minnesota. With the opening in Delaware, Qdoba now has a presence in 42 states. In addition, Qdoba acquired 22 franchised locations during the quarter for a total of $6.8 million. The restaurants are located in Michigan and Los Angeles, which the company believes provide good long-term growth potential consistent with its strategic goals.
At Jan. 18, 2009, the company's system total comprised 2,170 Jack in the Box restaurants, including 844 franchised locations, and 470 Qdoba restaurants, including 335 franchised locations.
Fiscal year 2009 guidance update:
- Flat to 2 percent decrease in same-store sales at Qdoba system restaurants.
- 60 to 80 new Qdoba restaurants, including 30 to 50 franchised locations.
