News
Qdoba parent Q3 net down 34%
August 4, 2009
Jack in the Box Inc., parent company of Qdoba Mexican Grill, has reported that systemwide same-store sales at Qdoba were down 2.8 percent in the third quarter ended July 5 vs. a year-ago increase of 0.5 percent, in-line with the company's guidance. Qdoba comps also were down 2.3 percent for the company's second quarter ended April 12.
Same-store sales at Jack in the Box company restaurants were down 1.0 percent for the third quarter, compared to a decrease of 0.4 percent in the same period last year.
Revenues for the third quarter were down 2.7 percent to $575.7 million, compared to $591.9 million reported in the same period last year. Year to date, revenues were down 1.5 percent to $1.93 billion, compared to $1.96 billion last year.
Net income was down 34 percent to $19.6 million, compared to $29.9 million reported in the same period last year. Year to date, net income was down 15.8 percent to $77.8 million, compared to $92.4 million last year.
Third quarter 2009 results include a pre-tax loss of approximately $2.4 million, or approximately 3 cents per diluted share, related to the expected sale of a lower-performing Jack in the Box company-operated market that is anticipated to close by the end of the calendar year.
As previously announced, the company expects to complete the sale of its 61 Quick Stuff convenience stores by the end of fiscal 2009 in multiple all-cash transactions. As a result, the company recorded an after-tax charge of $14.1 million in the third quarter.
"We're pleased with the improvement in restaurant operating margin and earnings despite the deceleration in sales during the quarter," said Linda A. Lang, chairman and chief executive officer. "The ongoing recession, which was exacerbated by higher unemployment and rising gas prices during the quarter, has consumers cutting back on their discretionary spending. In addition, we have seen aggressive discounting by not only quick-service competitors but other segments of the restaurant industry as well."
Guidance
Jack in the Box expects its same-store sales decline to continue at both brands for the fourth quarter. The company's guidance and underlying assumptions for the fourth quarter and fiscal year ending Sept. 27 include:
- 2.5 percent to 4.5 percent same-store sales decrease at Jack in the Box company restaurants versus a 0.8 percent decrease in the year-ago quarter
- 2 percent to 4 percent same-store sales decrease at Qdoba system restaurants versus a 1.0 percent decrease in the year-ago quarter
- Same-store sales guidance reflects trends experienced during the first four weeks of the fourth quarter
In June, Qdoba announced a three-year deal with the Boston Red Sox for marketing and concession servcies at Fenway Park. The chain also launched in July its Qdoba Mobile Rewards loyalty program.
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