Jack In The Box Inc. Reports Second Quarter FY 2014 Earnings; Updates Guidance For Fy 2014

SAN DIEGO - (BUSINESS WIRE) - May 14, 2014 - Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $18.3 million, or $0.43 per diluted share, for the second quarter ended April 13, 2014, compared with earnings from continuing operations of $15.1 million, or $0.33 per diluted share, for the second quarter of fiscal 2013.

Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, were $0.51 in the second quarter of fiscal 2014 compared with $0.37 in the prior year quarter.

A reconciliation of non-GAAP measurements to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.

    12 Weeks Ended   28 Weeks Ended
    April 13,   April 14,   April 13,   April 14,
    2014   2013   2014   2013
Diluted earnings per share from
continuing operations – GAAP
 

$

0.43

   

$

0.33

 

$

1.18

   

$

0.92

Restructuring charges     0.11       -     0.11       0.02
(Gains)/losses from refranchising     (0.03 )     0.03     (0.03 )     0.02
Operating earnings per share – Non-GAAP   $ 0.51     $ 0.37   $ 1.26     $ 0.96

 

In connection with the refinancing of the company’s credit facility in March 2014, the company wrote off $0.8 million in deferred financing costs during the second quarter. This charge is included in interest expense and negatively impacted diluted earnings per share by approximately one cent in the second quarter.

Lenny Comma, chairman and chief executive officer, said, "Overall, our second quarter results were solid, with a 38 percent increase in operating earnings per share resulting from better than expected same-store sales growth at Qdoba Mexican Grill®, margin expansion and lower overhead, which overcame a shortfall in sales at Jack in the Box®."

Increase (decrease) in same-store sales:

      12 Weeks Ended   12 Weeks Ended   28 Weeks Ended   28 Weeks Ended
      April 13, 2014   April 14, 2013   April 13, 2014   April 14, 2013
Jack in the Box®:                
  Company   0.9 %   0.9 %   1.5 %   1.6 %
  Franchise   0.6 %   (0.2 %)   1.3 %   0.9 %
  System   0.7 %   0.1 %   1.4 %   1.1 %
Qdoba®:                
  Company   7.2 %   (1.8 %)   4.3 %   0.1 %
  Franchise   6.8 %   (0.9 %)   4.4 %   (0.1 %)
  System   7.0 %   (1.3 %)   4.3 %   0.0 %

 

"Jack in the Box company same-store sales increased 0.9 percent for the quarter, as sales trends softened in the last half of the quarter, when we saw an increase in messaging around value promotions from our competitors," Comma said. "Importantly, both late-night and breakfast dayparts remained strong, and sales have rebounded through the first four weeks of our third quarter. While our same-store sales performance at Jack in the Box was lower than our expectations, system same-store sales growth for the quarter of 0.7 percent exceeded that of the QSR sandwich segment by 1.2 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 13, 2014. Included in this segment are 14 of the top QSR sandwich and burger chains in the country.

"Qdoba same-store sales in the second quarter increased 7.2 percent for company restaurants and 7.0 percent system-wide. 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."

Consolidated restaurant operating margin increased by 140 basis points to 18.5 percent of sales in the second quarter of 2014, compared with 17.1 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box restaurants increased 150 basis points to 18.6 percent of sales. The improvement was due primarily to lower food and packaging costs and the benefit of refranchising, which were partially offset by higher utility costs. The decrease in food and packaging costs as a percentage of sales resulted from the benefit of price increases and favorable product mix changes, combined with essentially no commodity inflation in the quarter. Restaurant operating margin for Qdoba restaurants increased 110 basis points to 18.3 percent of sales, due primarily to sales leverage, the benefit of less discounting, and commodity deflation of approximately 0.9 percent, which were partially offset by higher incentive compensation for restaurant managers, utilities, maintenance and repairs, credit card fees and beverage equipment rental costs.

SG&A expense for the second quarter decreased by $3.8 million and was 14.3 percent of revenues as compared to 15.1 percent in the prior year quarter. The decrease reflects a $4.0 million reduction in pension expense, a $1.9 million decrease in incentive and share-based compensation, and a $1.1 million decrease in advertising costs resulting from the Jack in the Box refranchising strategy. These decreases were partially offset by a $1.4 million increase in advertising costs at Qdoba due to the timing of advertising activities, and by a legal settlement of $1.0 million. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $0.5 million in the second quarter of 2014 as compared to $1.4 million in the second quarter of 2013, resulting in a year-over-year increase in SG&A of $0.9 million.

The company is continuing its efforts to improve its cost structure and identify opportunities to reduce G&A as well as improve restaurant profitability across both brands. During the second quarter of 2014, the company recorded a $6.4 million charge to write-off restaurant technology software as it plans to integrate certain systems across both brands to create efficiencies while lowering costs. Including this amount, total restructuring charges recorded during the second quarter of 2014 were $7.5 million, or approximately $0.11 per diluted share, as compared to $0.3 million during the second quarter of 2013. These charges are included in "Impairment and other charges, net" in the accompanying consolidated statements of earnings.

Gains from refranchising were $1.8 million in the second quarter of 2014, or approximately $0.03 per diluted share, compared with a loss of $2.4 million, or approximately $0.03 per diluted share, in the prior year quarter. During the second quarter of fiscal 2014, the company refranchised 14 Jack in the Box restaurants in one market and recognized a gain of $4.2 million. The company also recognized a loss of $3.1 million related to the expected sale of two Jack in the Box markets in the Southeast for which it has received signed letters of intent. Amounts in both years also include additional proceeds received as a result of the extension of underlying franchise and lease agreements for previously refranchised Jack in the Box restaurants.

In the third quarter of 2013, following the completion of the company’s previously disclosed review of market performance for its Qdoba brand, 62 company-operated Qdoba restaurants were closed, and the results of operations, impairment charges, lease obligations and other exit costs for these restaurants are included in discontinued operations in the accompanying consolidated statements of earnings for all periods presented. Discontinued operations for the second quarter of fiscal 2014 include after-tax charges related to the Qdoba restaurant closures of approximately $0.06 per diluted share, as compared to $0.04 for the second quarter of fiscal 2013.

Capital Allocation

The company repurchased approximately 2,100,000 shares of its common stock in the second quarter of 2014 at an average price of $59.54 per share for an aggregate cost of $125.0 million. Year-to-date through the second quarter, the company repurchased approximately 3,678,000 shares at an average price of $54.93 per share, for an aggregate cost of $202.0 million. This leaves $134.7 million remaining under a $200 million stock-buyback program authorized by the company’s Board of Directors in February 2014 that expires in November 2015. The company also separately announced today that its Board of Directors has approved the initiation of a regular quarterly cash dividend of $0.20 per share.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 6, 2014, and the fiscal year ending September 28, 2014. Fiscal 2014 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.

Third quarter fiscal year 2014 guidance

Fiscal year 2014 guidance

  • Same-store sales are expected to increase approximately 2.0 to 3.0 percent at Jack in the Box company restaurants versus a 1.2 percent increase in the year-ago quarter.
  • Same-store sales are expected to increase approximately 3.0 to 4.0 percent at Qdoba company restaurants versus a 0.5 percent increase in the year-ago quarter.

Fiscal year 2014 guidance

  • Same-store sales are expected to increase approximately 1.5 to 2.5 percent at Jack in the Box company restaurants.
  • Same-store sales are now expected to increase approximately 3.0 to 4.0 percent at Qdoba company restaurants.
  • Overall commodity costs are now expected to increase by approximately 1 to 2 percent for the full year.
  • Restaurant operating margin for the full year, which reflects an approximate 20 basis points impact from the July 2014 minimum wage increase in California, is expected to be approximately 18.0 to 18.5 percent, depending on same-store sales and commodity inflation.
  • SG&A as a percentage of revenue is expected to be approximately 13.5 to 14.0 percent as compared to 14.8 percent in fiscal 2013. G&A as a percentage of system-wide sales is expected to decline to approximately 3.8 percent in fiscal 2014 from 4.3 percent in fiscal 2013.
  • Impairment and other charges as a percentage of revenue are expected to be approximately 70 basis points, excluding restructuring charges.
  • Approximately 10 new Jack in the Box restaurants are expected to open, including approximately 3 company locations.
  • Approximately 50 new Qdoba restaurants are expected to open, of which approximately 20 are expected to be company locations.
  • Capital expenditures are expected to be $75 to $85 million.
  • The tax rate is expected to be approximately 37 to 38 percent.
  • Operating earnings per share, which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, are now expected to range from $2.25 to $2.35 in fiscal 2014 as compared to operating earnings per share of$1.82 in fiscal 2013.

Conference call

The company will host a conference call for financial analysts and investors on Thursday, May 15, 2014, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box Inc. corporate website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on May 15.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,250 restaurants in 21 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 600 restaurants in 46 states, the District of Columbia and Canada. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the following: the success of new products and marketing initiatives; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, and risks relating to expansion into new markets; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

 

JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)

Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.

    12 Weeks Ended   28 Weeks Ended
    April 13,      April 14,      April 13,      April 14,
    2014   2013   2014   2013
Diluted earnings per share from
continuing operations – GAAP
 

$

0.43

   

$

0.33

 

$

1.18

   

$

0.92

Restructuring charges     0.11       -     0.11       0.02
(Gains)/losses from refranchising     (0.03 )     0.03     (0.03 )     0.02
Operating earnings per share – Non-GAAP   $ 0.51     $ 0.37   $ 1.26     $ 0.96
                             

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
      Quarter     Year-to-Date
      April 13,     April 14,     April 13,     April 14,
      2014     2013     2014     2013
Revenues:                        
Company restaurant sales     $ 257,773       $ 268,797       $ 596,602       $ 617,703  
Franchise revenues       83,097         78,426         194,350         183,855  
        340,870         347,223         790,952         801,558  
Operating costs and expenses, net:                        
Company restaurant costs:                        
Food and packaging       81,422         88,036         189,660         200,572  
Payroll and employee benefits       71,616         76,188         165,432         175,764  
Occupancy and other       56,998         58,619         131,707         135,988  
Total company restaurant costs       210,036         222,843         486,799         512,324  
Franchise costs       41,996         39,661         97,507         92,149  
Selling, general and administrative expenses       48,660         52,482         107,816         119,168  
Impairment and other charges, net       9,056         2,373         10,965         5,625  
(Gains) losses on the sale of company-operated restaurants       (1,757 )       2,418         (2,218 )       1,670  
        307,991         319,777         700,869         730,936  
Earnings from operations       32,879         27,446         90,083         70,622  
Interest expense, net       4,311         3,426         8,853         8,791  
Earnings from continuing operations and before income taxes       28,568         24,020         81,230         61,831  
Income taxes       10,304         8,935         29,956         20,636  
Earnings from continuing operations       18,264         15,085         51,274         41,195  
Losses from discontinued operations, net of income tax benefit       (2,463 )       (1,795 )       (3,187 )       (7,216 )
Net earnings     $ 15,801       $ 13,290       $ 48,087       $ 33,979  
                         
Net earnings per share - basic:                        
Earnings from continuing operations     $ 0.44       $ 0.34       $ 1.22       $ 0.95  
Losses from discontinued operations       (0.06 )       (0.04 )       (0.08 )       (0.17 )
Net earnings per share (1)     $ 0.38       $ 0.30       $ 1.14       $ 0.78  
Net earnings per share - diluted:                        
Earnings from continuing operations     $ 0.43       $ 0.33       $ 1.18       $ 0.92  
Losses from discontinued operations       (0.06 )       (0.04 )       (0.07 )       (0.16 )
Net earnings per share (1)     $ 0.37       $ 0.29       $ 1.11       $ 0.76  
                         
Weighted-average shares outstanding:                        
Basic       41,464         43,747         42,018         43,319  
Diluted       42,632         45,274         43,336         44,736  
                         
(1) Earnings per share may not add due to rounding
 

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(Unaudited)
        April 13,       September 29,
        2014       2013
ASSETS                
Current assets:                
Cash and cash equivalents       $ 9,112         $ 9,644  
Accounts and other receivables, net         56,317           41,749  
Inventories         7,821           7,181  
Prepaid expenses         45,344           19,970  
Deferred income taxes         26,685           26,685  
Assets held for sale         3,569           11,875  
Other current assets         1,103           108  
Total current assets         149,951           117,212  
Property and equipment, at cost         1,507,467           1,516,913  
Less accumulated depreciation and amortization         (772,567 )         (746,054 )
Property and equipment, net         734,900           770,859  
Intangible assets, net         16,006           16,390  
Goodwill         149,115           148,988  
Other assets, net         264,414           265,760  
        $ 1,314,386         $ 1,319,209  
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Current maturities of long-term debt       $ 10,851         $ 20,889  
Accounts payable         32,149           36,899  
Accrued liabilities         135,772           153,886  
Total current liabilities         178,772           211,674  
Long-term debt, net of current maturities         498,882           349,393  
Other long-term liabilities         275,579           286,124  
Stockholders’ equity:                
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued                    
Common stock $0.01 par value, 175,000,000 shares authorized, 79,639,009 and                        
78,515,171 issued, respectively         796           785  
Capital in excess of par value         337,678           296,764  
Retained earnings         1,219,910           1,171,823  
Accumulated other comprehensive loss         (60,508 )         (62,662 )
Treasury stock, at cost, 39,604,361 and 35,926,269 shares, respectively         (1,136,723 )         (934,692 )
Total stockholders’ equity         361,153           472,018  
        $ 1,314,386         $ 1,319,209  
                         

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
        Year-to-Date
        April 13,       April 14,
        2014       2013
Cash flows from operating activities:                
Net earnings       $ 48,087         $ 33,979  
Adjustments to reconcile net earnings to net cash provided by operating activities:                
Depreciation and amortization         49,725           52,590  
Deferred finance cost amortization         1,177           1,249  
Deferred income taxes         5,221           2,536  
Share-based compensation expense         6,348           7,599  
Pension and postretirement expense         7,410           16,772  
Gains on cash surrender value of company-owned life insurance         (3,428 )         (5,669 )
(Gains) losses on the sale of company-operated restaurants         (2,218 )         1,670  
Losses on the disposition of property and equipment         1,745           416  
Impairment charges and other         6,937           4,828  
Loss on early retirement of debt         789           939  
Changes in assets and liabilities, excluding acquisitions and dispositions:                
Accounts and other receivables         (14,274 )         25,227  
Inventories         (640 )         25,883  
Prepaid expenses and other current assets         (26,368 )         751  
Accounts payable         1,725           (32,036 )
Accrued liabilities         (13,543 )         (4,256 )
Pension and postretirement contributions         (7,831 )         (7,052 )
Other         (9,910 )         (3,821 )
Cash flows provided by operating activities         50,952           121,605  
Cash flows from investing activities:                
Purchases of property and equipment         (31,196 )         (41,754 )
Purchases of assets intended for sale and leaseback         (19 )         (25,165 )
Proceeds from the sale of assets         2,105           22,892  
Proceeds from the sale of company-operated restaurants         7,842           2,866  
Collections on notes receivable         1,774           2,987  
Acquisitions of franchise-operated restaurants         (1,750 )         (11,014 )
Other         36           3,694  
Cash flows used in investing activities         (21,208 )         (45,494 )
Cash flows from financing activities:                
Borrowings on revolving credit facilities         509,000           479,000  
Repayments of borrowings on revolving credit facilities         (379,000 )         (539,000 )
Proceeds from issuance of debt         200,000           200,000  
Principal repayments on debt         (190,549 )         (170,540 )
Debt issuance costs         (3,527 )         (4,392 )
Proceeds from issuance of common stock         22,457           37,113  
Repurchases of common stock         (205,453 )         (40,465 )
Excess tax benefits from share-based compensation arrangements         12,017           599  
Change in book overdraft         4,774           (36,693 )
Cash flows used in financing activities         (30,281 )         (74,378 )

Effect of exchange rate changes on cash and cash equivalents

        5            

Net (decrease) increase in cash and cash equivalents

        (532 )         1,733  

Cash and cash equivalents at beginning of period

        9,644           8,469  

Cash and cash equivalents at end of period

      $ 9,112         $ 10,202  
                         

 

   
JACK IN THE BOX INC. AND SUBSIDIARIES  
SUPPLEMENTAL INFORMATION  
(Unaudited)  
   

The following table presents certain income and expense items included in our consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

 
   
CONSOLIDATED STATEMENTS OF EARNINGS DATA  
  Quarter       Year-to-Date  
  April 13,       April 14,       April 13,       April 14,  
  2014       2013       2014       2013  
Revenues:                            
Company restaurant sales 75.6 %       77.4 %       75.4 %       77.1 %  
Franchise revenues 24.4 %       22.6 %       24.6 %       22.9 %  

Total revenues

100.0 %       100.0 %       100.0 %       100.0 %  
Operating costs and expenses, net:                            
Company restaurant costs:                            
Food and packaging (1) 31.6 %       32.8 %       31.8 %       32.5 %  
Payroll and employee benefits (1) 27.8 %       28.3 %       27.7 %       28.5 %  
Occupancy and other (1) 22.1 %       21.8 %       22.1 %       22.0 %  
Total company restaurant costs (1) 81.5 %       82.9 %       81.6 %       82.9 %  
Franchise costs (1) 50.5 %       50.6 %       50.2 %       50.1 %  
Selling, general and administrative expenses 14.3 %       15.1 %       13.6 %       14.9 %  
Impairment and other charges, net 2.7 %       0.7 %       1.4 %       0.7 %  
(Gains) losses on the sale of company-operated restaurants (0.5 )%       0.7 %       (0.3 )%       0.2 %  
Earnings from operations 9.6 %       7.9 %       11.4 %       8.8 %  
Income tax rate (2) 36.1 %       37.2 %       36.9 %       33.4 %  
                             
(1) As a percentage of the related sales and/or revenues.
(2) As a percentage of earnings from continuing operations and before income taxes.
 

 

 

The following table presents Jack in the Box and Qdoba company restaurant sales, costs and costs as a percentage of the related sales. Percentages may not add due to rounding.

 
SUPPLEMENTAL COMPANY-OPERATED RESTAURANTS STATEMENTS OF EARNINGS DATA
(Dollars in thousands)
      Quarter     Year-to-Date
      April 13, 2014     April 14, 2013     April 13, 2014     April 14, 2013
Jack in the Box:                                                
Company restaurant sales     $ 181,206           $ 203,439           $ 425,077           $ 470,615      
Company restaurant costs:                                                
Food and packaging       58,644     32.4 %       68,195     33.5 %       138,510     32.6 %       155,993     33.1 %
Payroll and employee benefits       50,971     28.1 %       58,108     28.6 %       118,453     27.9 %       135,110     28.7 %
Occupancy and other       37,831     20.9 %       42,421     20.9 %       87,818     20.7 %       99,009     21.0 %
Total company restaurant costs     $ 147,446     81.4 %     $ 168,724     82.9 %     $ 344,781     81.1 %     $ 390,112     82.9 %
Qdoba:                                                
Company restaurant sales     $ 76,567           $ 65,358           $ 171,525           $ 147,088      
Company restaurant costs:                                                
Food and packaging       22,778     29.7 %       19,841     30.4 %       51,150     29.8 %       44,579     30.3 %
Payroll and employee benefits       20,645     27.0 %       18,080     27.7 %       46,979     27.4 %       40,654     27.6 %
Occupancy and other       19,167     25.0 %       16,198     24.8 %       43,889     25.6 %       36,979     25.1 %
Total company restaurant costs     $ 62,590     81.7 %     $ 54,119     82.8 %     $ 142,018     82.8 %     $ 122,212     83.1 %
                                                                 

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
 
The following table summarizes the changes in the number and mix of Jack in the Box and Qdoba company and franchise restaurants in each fiscal year:
      April 13, 2014     April 14, 2013
      Company     Franchise     Total     Company     Franchise     Total
Jack in the Box:                                    
Beginning of year     465     1,786     2,251     547     1,703     2,250
New         7     7     3     9     12
Refranchised     (14)     14         (4)     4    
Acquired from franchisees     4     (4)         1     (1)    
Closed         (4)     (4)     (1)     (5)     (6)
End of period     455     1,799     2,254     546     1,710     2,256
% of JIB system     20 %     80 %     100 %     24 %     76 %     100 %
% of consolidated system     60 %     85 %     78 %     62 %     85 %     78 %
Qdoba:                                    
Beginning of year     296     319     615     316     311     627
New     8     12     20     12     20     32
Acquired from franchisees                 12     (12)    
Closed     (1)     (8)     (9)         (12)     (12)
End of period     303     323     626     340     307     647

% of Qdoba system

    48 %     52 %     100 %     53 %     47 %     100 %
% of consolidated system     40 %     15 %     22 %     38 %     15 %     22 %
Consolidated:                                    
Total system     758     2,122     2,880     886     2,017     2,903
% of consolidated system     26 %     74 %     100 %     31 %     69 %     100 %

SOURCE: Jack in the Box Inc.

Contacts:

Carol DiRaimo
Jack in the Box Inc.
Investor Relations
(858) 571-2407

Brian Luscomb
Jack in the Box Inc.
Media Relations
(858) 571-2291

###

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