News

Qdoba experiences double-digit growth in catering sales

May 16, 2014

Jack in the Box Inc. reported earnings from continuing operations of $18.3 million, or $0.43 per diluted share, for Q2, compared to $15.1 million, or $0.33 per diluted share, for the same period last year.

CEO Lenny Comma said in a press release that these results were solid, and included a 38-percent increase in operating earnings per share driven by better-than-expected same-store sales growth at Qdoba, margin expansion and lower overhead.

Qdoba’s same-store sales were up 7.2 percent at company-owned restaurants, and 6.8 percent at franchised units.

“Our results exceeded our expectations following the mid-February introduction of our Queso Bliss promotion featuring two new Queso flavors, Diablo and Verde. Guests clearly responded to the new product news surrounding this limited-time offer. In addition, our company performance reflected less discounting, as well as double-digit growth in catering sales,” Comma said in the release.

These drivers helped overcome a “shortfall in sales” at Jack in the Box, which was affected by increased value promotions from its competitors. Jack in the Box’s same-store sales were still positive, up 0.9 percent at company stores and 0.6 percent at franchised units.

Initiation of cash dividend

Also this week, Jack in the Box Inc. announced the approval of the initiation of a regular quarterly cash dividend. The initial quarterly cash dividend of $0.20 per share will be paid on June 9, to shareholders of record as of May 27. Future dividends will be subject to board approval.