News
Qdoba negative comps to continue in first half FY2010
November 19, 2009
Jack in the Box Inc. has reported that same-store sales at its quick-serve Jack in the Box and fast casual Qdoba Mexican Grill brands were down for the fourth quarter ended Sept. 27.
Systemwide same-store sales at Qdoba Mexican Grill were down 3.1 percent in the fourth quarter vs. a year-ago decline of 1.0 percent. For the full year, systemwide same-store sales decreased 2.3 percent at Qdoba compared to an increase of 1.6 percent last year.
Combined revenues for the quarter were down 7 percent at $540.3 million, compared to $582.7 million in the in same period last year. For the year, revenues were down 3 percent at $2.47 billion, compared to $2.55 billion last year.
Meanwhile, combined net income for the quarter was up 51 percent at $40.6 million, compared to $26.9 million in the same period last year. For the fiscal year, net income was down 0.75 percent at $118.5 million vs. $119.3 million last year.
As previously announced, the company completed the sale of its 61 Quick Stuff convenience stores during the fourth quarter of fiscal 2009 in multiple transactions with cash proceeds totaling $34.4 million. The company recorded after-tax charges totaling $15.0 million in fiscal 2009, which reduced diluted earnings per share by approximately 26 cents.
Restaurant openings
In the fourth quarter, 21 Qdoba restaurants opened, including 11 franchised locations, versus 25 new restaurants in the year-ago quarter, 13 of which were franchised. For the full year, 62 new Qdoba restaurants opened, including 38 franchised locations, compared with 77 new restaurants in fiscal 2008, 56 of which were franchised.
As of Sept. 27, the company's system total comprised 2,212 Jack in the Box restaurants, including 1,022 franchised locations, and 510 Qdoba restaurants, including 353 franchised locations.
Upcoming guidance
Guidance for the first quarter includes:
- Same-store sales are expected to decrease approximately 10 percent at Jack in the Box company restaurants versus a 1.7 percent increase in the year-ago quarter.
- Same-store sales are expected to decrease approximately 5 percent at Qdoba system restaurants versus a 1.1 percent decrease in the year-ago quarter.
Guidance for the fiscal year 2010 includes:
- Three to 7 percent decrease in same-store sales at Jack in the Box company restaurants, with trends improving in the second half of the fiscal year
- 3 to 5 percent decrease in same-store sales at Qdoba system restaurants
- Overall commodity costs are expected to be approximately flat, with greater favorability in the first half of the fiscal year
- Opening of 30 to 40 new Qdoba restaurants, including approximately 15 company locations.
Conference call replay
A replay of the company's conference call for financial analysts and investors is available through the conference-call link on the Jack in the Box Inc. investors Web site for 21 days.
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