News

Qdoba's same-store sales up

August 10, 2011

Jack in the Box Inc., parent company of Qdoba Mexican Grill and Jack in the Box, released its financial report for the third quarter 2011, ended July 10, which included a net earnings drop to $18.7 million, or $0.38 per diluted share, compared to net earnings of $24.2 million, or $0.44 per diluted share, for the same period last year.

However, the company exceeded comparable sales growth expectations for the quarter, buoyed by a 5.1 percent system wide same-store sales increase at Qdoba, and a 4.7 percent same-store sales boost from Jack in the Box.

Linda A. Lang, chairman, CEO and president, said the Jack in the Box numbers were ahead of expectations, driven by strong traffic growth and an increase in the average check. Qdoba was boosted by higher transactions and catering orders.

"On a two-year basis, this represented our fourth consecutive quarter of sequentially improving trends, which we believe has been largely driven by the investments we have made to enhance the entire guest experience at the Jack in the Box brand," she said. "Qdoba's same-store sales momentum continued in the third quarter ... driven by a combination of transaction growth, pricing and higher catering sales."

Gains from refranchising contributed approximately $0.13 per diluted share for the quarter as compared with approximately $0.26 per diluted share in the prior year quarter.

Operating earnings per share were approximately $0.25 per diluted share compared with approximately $0.18 per diluted share in the prior year quarter.

Consolidated restaurant operating margin was 12.5 percent of sales in the third quarter of 2011, compared with 14.2 percent of sales in the year-ago quarter.

Restaurant openings

In the third quarter, 17 Qdoba restaurants opened, including 11 franchised locations, compared to 13 new restaurants in the year-ago quarter, of which 8 were franchised.

As of early July, the company's system total comprised 2,220 Jack in the Box restaurants, including 1,485 franchised locations, and 564 Qdoba restaurants, including 335 franchised locations.

Fourth quarter fiscal year 2011 guidance

• Same-store sales are expected to increase approximately 3 to 5 percent at Qdoba system restaurants versus a 5.6 percent increase in 2010.
• Same-store sales guidance reflects trends experienced during the first four weeks of the fourth quarter.
• Commodity costs for the quarter are currently expected to increase by approximately 7 percent, driven by higher costs for most commodities other than poultry.

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