Jack in the Box Inc. Reports Second Quarter FY 2016 Earnings

Updates Guidance for FY 2016; Declares Quarterly Cash Dividend

SAN DIEGO - May 11, 2016 - (BUSINESS WIRE) - Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $29.0 million, or $0.85 per diluted share, for the second quarter ended April 10, 2016, compared with $23.4 million, or $0.61 per diluted share, for the second quarter of fiscal 2015.

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 $0.85 in the second quarter of fiscal 2016 compared with $0.69 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 10,
2016
  April 12,
2015
  April 10,
2016
  April 12,
2015
Diluted earnings per share from
continuing operations – GAAP
  $ 0.85     $ 0.61     $ 1.78     $ 1.55
Losses (gains) from refranchising       0.08     (0.01 )   0.07
Operating earnings per share – Non-GAAP   $ 0.85     $ 0.69     $ 1.77     $ 1.62

Lenny Comma, chairman and chief executive officer, said, “Operating earnings per share for the second quarter exceeded our expectations and guidance, and resulted primarily from healthy margins and cost controls combined with mark-to-market adjustments and a lower tax rate. We were pleased with the solid sales performance at Qdoba® company restaurants, which was driven by traffic growth, as well as with the improvement in labor costs and margins as compared to the first quarter.

"At the Jack in the Box® brand, system same-store sales were flat for the quarter as compared to an increase of 8.9 percent in the prior year. In late January, we introduced multiple upgrades to the core menu at our Jack in the Box restaurants system-wide, and in the latter half of the quarter, we featured the improved products in marketing messages at price points conveying both value and quality.

"We look forward to sharing our growth plans and strategies to enhance shareholder value at our upcoming investor meeting."

Increase (decrease) in same-store sales:

      12 Weeks Ended   28 Weeks Ended
      April 10,
2016
  April 12,
2015
  April 10,
2016
  April 12,
2015
Jack in the Box:                
  Company   (1.0 )%   7.4 %   (0.2 )%   5.3 %
  Franchise   0.3 %   9.4 %   1.1 %   6.7 %
  System   0.0 %   8.9 %   0.8 %   6.3 %
Qdoba:                
  Company   3.1 %   7.0 %   2.2 %   10.2 %
  Franchise   1.2 %   9.6 %   1.8 %   12.6 %
  System   2.1 %   8.3 %   2.0 %   11.4 %
                           

Jack in the Box system same-store sales were flat for the quarter, and lagged the QSR sandwich segment by 2.7 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 10, 2016. Included in this segment are 16 of the top QSR sandwich and burger chains in the country. Company same-store sales decreased 1.0 percent, with average check up 1.4 percent.

Qdoba same-store sales increased 2.1 percent system-wide and 3.1 percent for company restaurants in the second quarter. Company same-store sales reflected a 3.7 percent increase in transactions as well as growth in catering sales.

Consolidated restaurant operating margin decreased by 70 basis points to 19.9 percent of sales in the second quarter of 2016, compared with 20.6 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box company restaurants decreased 70 basis points to 20.7 percent of sales. The decrease was due primarily to minimum wage increases in California that went into effect in January 2016 and higher costs related to equipment upgrades which were partially offset by favorable food and packaging costs. The decrease in food and packaging costs as a percentage of sales resulted from the benefit of commodity deflation of approximately 2.9 percent in the quarter, favorable product mix changes and menu price increases. Restaurant operating margin for Qdoba company restaurants decreased 50 basis points to 18.3 percent of sales, as costs associated with a greater number of new restaurant openings and higher promotional activity more than offset the sales growth and benefits from commodity deflation of approximately 4.6 percent in the quarter.

Franchise margin as a percentage of total franchise revenues improved to 53.8 percent in the second quarter from 51.7 percent in the prior year quarter. The improvement was due primarily to higher net rental income of $1.9 million recognized in the quarter related to previously refranchised Jack in the Box markets. This annual adjustment resulted from higher sales over the last year.

SG&A expense for the second quarter decreased by $5.6 million and was 13.0 percent of revenues as compared to 14.7 percent in the prior year quarter. The decrease reflects a $3.9 million decrease in incentive compensation and a $1.2 million decrease in pension and postretirement benefits related to the sunsetting of the company's qualified pension plan on December 31, 2015. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $2.3 million in the second quarter of 2016 as compared to a positive impact of $1.6 million in the second quarter of 2015, resulting in a year-over-year decrease in SG&A of $0.7 million. These decreases were partially offset by a $2.0 million increase in advertising costs at Qdoba due to the timing of promotional activities, and higher pre-opening costs of $0.6 million resulting from a greater number of Qdoba openings and restaurants under construction in the second quarter.

Interest expense, net, increased by $2.7 million in the second quarter due to increased leverage and a higher effective interest rate for 2016.

The tax rate for the second quarter of 2016 was 36.7 percent versus 37.9 percent for the second quarter of 2015. The lower tax rate in the second quarter of 2016 was due primarily to favorable adjustments on investments supporting the company's non-qualified retirement plans.

Capital Allocation

The company repurchased approximately 2,177,000 shares of its common stock in the second quarter of 2016 at an average price of $68.90 per share for an aggregate cost of $150.0 million. This leaves $50.0 million remaining under a stock-buyback program authorized by the company’s Board of Directors in February 2016 that expires in November 2017. In May 2016, the company’s Board of Directors authorized an additional $100 million stock buyback program that also expires in November 2017.

The company also announced today that on May 5, 2016, its Board of Directors declared a quarterly cash dividend of $0.30 per share on the company’s common stock. The dividend is payable on June 7, 2016, to shareholders of record at the close of business on May 24, 2016.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 3, 2016, and fiscal year ending October 2, 2016. Fiscal 2016 is a 53-week year, with 16 weeks in the first quarter, 12 weeks in each of the second and third quarters, and 13 weeks in the fourth quarter.

Third quarter fiscal year 2016 guidance

  • Same-store sales ranging from approximately down 2.0 percent to flat at Jack in the Box company restaurants versus a 5.5 percent increase in the year-ago quarter. The low end of the sales guidance range reflects trends through the first four weeks of the third quarter which have been negatively impacted by heavy rainfall and flooding in Houston where 17 percent of Jack in the Box company restaurants are located.
  • Same-store sales ranging from approximately down 1.0 percent to up 1.0 percent at Qdoba company restaurants versus a 6.6 percent increase in the year-ago quarter. Sales trends are tracking slightly below the low end of the guidance range due in part to adverse weather in key markets, but are expected to improve over the balance of the third quarter due to planned promotional activity.

Fiscal year 2016 guidance

  • Same-store sales of approximately flat to up 1.0 percent at Jack in the Box company restaurants.
  • Same-store sales increase of approximately 1.5 to 2.5 percent at Qdoba company restaurants.
  • Commodity deflation of approximately 2 to 3 percent for Jack in the Box and approximately 5 percent at Qdoba.
  • Consolidated restaurant operating margin of approximately 20.0 to 20.5 percent.
  • SG&A as a percentage of revenue of approximately 13.0 to 13.5 percent as compared to 14.4 percent in fiscal 2015.
  • Impairment and other charges as a percentage of revenue of approximately 80 basis points.
  • Approximately 20 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.
  • Approximately 50 to 60 new Qdoba restaurants, of which approximately half are expected to be company locations.
  • Capital expenditures of $100 million to $120 million.
  • Tax rate of approximately 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, ranging from $3.50 to $3.63 in fiscal 2016 as compared to operating earnings per share of $3.00 in fiscal 2015. The estimated benefit of the 53rd week in fiscal 2016 is approximately $0.08 per diluted share.

Conference call

The company will host a conference call for financial analysts and investors on Thursday, May 12, 2016, 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 athttp://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 12.

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 2,200 restaurants in 21 states and Guam. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Eats®, a leader in fast-casual dining, with more than 600 restaurants in 47 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 reduce G&A; the company's ability to execute its refranchising strategy; 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; litigation risks; food safety incidents or negative publicity impacting the reputations of the company's brands; 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 10,
2016
  April 12,
2015
  April 10,
2016
  April 12,
2015
Diluted earnings per share from
continuing operations – GAAP
  $ 0.85     $ 0.61     $ 1.78     $ 1.55
Losses (gains) from refranchising       0.08     (0.01 )   0.07
Operating earnings per share – Non-GAAP   $ 0.85     $ 0.69     $ 1.77     $ 1.62

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
             
      12 Weeks Ended     28 Weeks Ended
      April 10,
2016
    April 12,
2015
    April 10,
2016
    April 12,
2015
Revenues:                        
Company restaurant sales     $ 271,792       $ 268,904       $ 625,013       $ 620,800  
Franchise rental revenues     52,602       52,215       122,340       121,661  
Franchise royalties and other     36,757       37,003       84,621       84,282  
      361,151       358,122       831,974       826,743  
Operating costs and expenses, net:                        
Company restaurant costs:                        
Food and packaging     82,066       84,032       190,977       197,141  
Payroll and employee benefits     76,137       73,073       174,044       168,752  
Occupancy and other     59,527       56,468       137,226       131,499  
Total company restaurant costs     217,730       213,573       502,247       497,392  
Franchise occupancy expenses     37,408       39,316       89,627       91,734  
Franchise support and other costs     3,907       3,743       8,769       8,466  
Selling, general and administrative expenses     46,895       52,472       112,767       115,567  
Impairment and other charges, net     2,422       2,130       4,079       4,310  
Losses (gains) on the sale of company-operated restaurants     3       5,020       (815 )     4,170  
      308,365       316,254       716,674       721,639  
Earnings from operations     52,786       41,868       115,300       105,104  
Interest expense, net     6,911       4,220       15,086       9,433  
Earnings from continuing operations and before income taxes     45,875       37,648       100,214       95,671  
Income taxes     16,847       14,286       37,289       35,211  
Earnings from continuing operations     29,028       23,362       62,925       60,460  
Losses from discontinued operations, net of income tax benefit     (346 )     (357 )     (1,022 )     (1,620 )
Net earnings     $ 28,682       $ 23,005       $ 61,903       $ 58,840  
                         
Net earnings per share - basic:                        
Earnings from continuing operations     $ 0.86       $ 0.62       $ 1.81       $ 1.58  
Losses from discontinued operations     (0.01 )     (0.01 )     (0.03 )     (0.04 )
Net earnings per share (1)     $ 0.85       $ 0.61       $ 1.78       $ 1.53  
Net earnings per share - diluted:                        
Earnings from continuing operations     $ 0.85       $ 0.61       $ 1.78       $ 1.55  
Losses from discontinued operations     (0.01 )     (0.01 )     (0.03 )     (0.04 )
Net earnings per share (1)     $ 0.84       $ 0.60       $ 1.76       $ 1.51  
                         
Weighted-average shares outstanding:                        
Basic     33,656       37,970       34,686       38,353  
Diluted     34,177       38,566       35,256       39,039  
                         
Cash dividends declared per common share     $ 0.30       $ 0.20       $ 0.60       $ 0.40  

 

>

(1)   Earnings per share may not add due to rounding.
     

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
             
      April 10,
2016
    September 27,
2015
ASSETS            
Current assets:            
Cash and cash equivalents     $ 8,799       $ 17,743  
Accounts and other receivables, net     71,948       47,975  
Inventories     7,873       7,376  
Prepaid expenses     24,786       16,240  
Assets held for sale     19,682       15,516  
Other current assets     2,616       3,106  
Total current assets     135,704       107,956  
Property and equipment, at cost     1,576,974       1,563,377  
Less accumulated depreciation and amortization     (862,552 )     (835,114 )
Property and equipment, net     714,422       728,263  
Intangible assets, net     14,364       14,765  
Goodwill     149,012       149,027  
Other assets, net     287,962       303,968  
      $ 1,301,464       $ 1,303,979  
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY            
Current liabilities:            
Current maturities of long-term debt     $ 26,272       $ 26,677  
Accounts payable     28,095       32,137  
Accrued liabilities     165,091       170,575  
Total current liabilities     219,458       229,389  
Long-term debt, net of current maturities     909,388       688,579  
Other long-term liabilities     363,235       370,058  
Stockholders’ (deficit) 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, 81,306,567 and 81,096,156 issued, respectively     813       811  
Capital in excess of par value     414,816       402,986  
Retained earnings     1,357,178       1,316,119  
Accumulated other comprehensive loss     (141,991 )     (132,530 )
Treasury stock, at cost, 48,765,738 and 45,314,529 shares, respectively     (1,821,433 )     (1,571,433 )
Total stockholders’ (deficit) equity     (190,617 )     15,953  
      $ 1,301,464       $ 1,303,979  
                     

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
       
      28 Weeks Ended
      April 10,
2016
    April 12,
2015
Cash flows from operating activities:            
Net earnings     $ 61,903       $ 58,840  
Adjustments to reconcile net earnings to net cash provided by operating activities:            
Depreciation and amortization     49,331       47,875  
Deferred finance cost amortization     1,437       1,155  
Excess tax benefits from share-based compensation arrangements     (2,451 )     (17,073 )
Deferred income taxes     (1,303 )     (2,785 )
Share-based compensation expense     7,901       7,367  
Pension and postretirement expense     7,261       10,096  
Gains on cash surrender value of company-owned life insurance     (2,446 )     (3,635 )
(Gains) losses on the sale of company-operated restaurants     (815 )     4,170  
Losses on the disposition of property and equipment     1,646       466  
Impairment charges and other     858       2,180  
Changes in assets and liabilities:            
Accounts and other receivables     (25,875 )     (21,841 )
Inventories     (497 )     146  
Prepaid expenses and other current assets     (2,149 )     27,181  
Accounts payable     (1,847 )     (1,459 )
Accrued liabilities     (3,464 )     (8,991 )
Pension and postretirement contributions     (8,255 )     (8,113 )
Other     (782 )     (4,659 )
Cash flows provided by operating activities     80,453       90,920  
Cash flows from investing activities:            
Purchases of property and equipment     (51,298 )     (32,959 )
Purchases of assets intended for sale and leaseback     (5,581 )     (5,355 )
Proceeds from the sale and leaseback of assets     7,748        
Proceeds from the sale of company-operated restaurants     1,021       2,630  
Collections on notes receivable     2,614       5,314  
Acquisition of franchise-operated restaurants     324        
Other     14       1,786  
Cash flows used in investing activities     (45,158 )     (28,584 )
Cash flows from financing activities:            
Borrowings on revolving credit facilities     497,000       264,000  
Repayments of borrowings on revolving credit facilities     (264,000 )     (160,000 )
Principal repayments on debt     (13,065 )     (7,996 )
Dividends paid on common stock     (20,765 )     (15,395 )
Proceeds from issuance of common stock     1,432       13,894  
Repurchases of common stock     (250,000 )     (174,115 )
Excess tax benefits from share-based compensation arrangements     2,451       17,073  
Change in book overdraft     2,695        
Cash flows used in financing activities     (44,252 )     (62,539 )
Effect of exchange rate changes on cash and cash equivalents     13       11  
Net decrease in cash and cash equivalents     (8,944 )     (192 )
Cash and cash equivalents at beginning of period     17,743       10,578  
Cash and cash equivalents at end of period     $ 8,799       $ 10,386  
                     

 

JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

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

 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA
(Unaudited)
             
      12 Weeks Ended     28 Weeks Ended
      April 10,
2016
    April 12,
2015
    April 10,
2016
    April 12,
2015
Revenues:                        
Company restaurant sales     75.3 %     75.1 %     75.1 %     75.1 %
Franchise rental revenues     14.6 %     14.6 %     14.7 %     14.7 %
Franchise royalties and other     10.2 %     10.3 %     10.2 %     10.2 %
Total revenues     100.0 %     100.0 %     100.0 %     100.0 %
Operating costs and expenses, net:                        
Company restaurant costs:                        
Food and packaging (1)     30.2 %     31.2 %     30.6 %     31.8 %
Payroll and employee benefits (1)     28.0 %     27.2 %     27.8 %     27.2 %
Occupancy and other (1)     21.9 %     21.0 %     22.0 %     21.2 %
Total company restaurant costs (1)     80.1 %     79.4 %     80.4 %     80.1 %
Franchise occupancy expenses (2)     71.1 %     75.3 %     73.3 %     75.4 %
Franchise support and other costs (3)     10.6 %     10.1 %     10.4 %     10.0 %
Selling, general and administrative expenses     13.0 %     14.7 %     13.6 %     14.0 %
Impairment and other charges, net     0.7 %     0.6 %     0.5 %     0.5 %
Losses (gains) on the sale of company-operated restaurants     %     1.4 %     (0.1 )%     0.5 %
Earnings from operations     14.6 %     11.7 %     13.9 %     12.7 %
Income tax rate (4)     36.7 %     37.9 %     37.2 %     36.8 %

 

(1)   As a percentage of company restaurant sales.
(2)   As a percentage of franchise rental revenues.
(3)   As a percentage of franchise royalties and other.
(4)   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 margin, and restaurant costs and margin as a percentage of the related sales. Percentages may not add due to rounding.

 
SUPPLEMENTAL COMPANY RESTAURANT OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
             
      12 Weeks Ended     28 Weeks Ended
      April 10, 2016     April 12, 2015     April 10, 2016     April 12, 2015
Jack in the Box:                                                
Company restaurant sales     $ 179,664             $ 184,992             $ 415,943             $ 426,335        
Company restaurant costs:                                                
Food and packaging     54,116       30.1 %     58,495       31.6 %     127,249       30.6 %     137,688       32.3 %
Payroll and employee benefits     51,401       28.6 %     50,885       27.5 %     117,090       28.2 %     117,628       27.6 %
Occupancy and other     36,905       20.5 %     36,051       19.5 %     85,076       20.5 %     84,682       19.9 %
Total company restaurant costs     142,422       79.3 %     145,431       78.6 %     329,415       79.2 %     339,998       79.7 %
Restaurant margin     $ 37,242       20.7 %     $ 39,561       21.4 %     $ 86,528       20.8 %     $ 86,337       20.3 %
Qdoba:                                                
Company restaurant sales     $ 92,128             $ 83,912             $ 209,070             $ 194,465        
Company restaurant costs:                                                
Food and packaging     27,950       30.3 %     25,537       30.4 %     63,728       30.5 %     59,453       30.6 %
Payroll and employee benefits     24,736       26.8 %     22,188       26.4 %     56,954       27.2 %     51,124       26.3 %
Occupancy and other     22,622       24.6 %     20,417       24.3 %     52,150       24.9 %     46,817       24.1 %
Total company restaurant costs     75,308       81.7 %     68,142       81.2 %     172,832       82.7 %     157,394       80.9 %
Restaurant margin     $ 16,820       18.3 %     $ 15,770       18.8 %     $ 36,238       17.3 %     $ 37,071       19.1 %
                                                                         

The following table presents franchise revenues, costs and margin in each period:

 
SUPPLEMENTAL FRANCHISE OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
             
      12 Weeks Ended     28 Weeks Ended
      April 10,
2016
    April 12,
2015
    April 10,
2016
    April 12,
2015
Franchise rental revenues     $ 52,602       $ 52,215       $ 122,340       $ 121,661  
                         
Royalties     36,122       35,894       82,784       81,723  
Franchise fees and other     635       1,109       1,837       2,559  
Franchise royalties and other     36,757       37,003       84,621       84,282  
Total franchise revenues     89,359       89,218       206,961       205,943  
                         
Rental expense     30,016       31,707       72,188       73,905  
Depreciation and amortization     7,392       7,609       17,439       17,829  
Franchise occupancy expenses     37,408       39,316       89,627       91,734  
Franchise support and other costs     3,907       3,743       8,769       8,466  
Total franchise costs     41,315       43,059       98,396       100,200  
Franchise margin     $ 48,044       $ 46,159       $ 108,565       $ 105,743  
Franchise margin as a % of franchise revenues     53.8 %     51.7 %     52.5 %     51.3 %
                                 

The following table provides information related to our operating segments in each period:

 
SUPPLEMENTAL SEGMENT REPORTING INFORMATION
(In thousands)
(Unaudited)
             
      12 Weeks Ended     28 Weeks Ended
      April 10,
2016
    April 12,
2015
    April 10,
2016
    April 12,
2015
Revenues by segment:                        
Jack in the Box restaurant operations     $ 264,062       $ 269,444       $ 611,645       $ 621,395  
Qdoba restaurant operations     97,089       88,678       220,329       205,348  
Consolidated revenues     $ 361,151       $ 358,122       $ 831,974       $ 826,743  
Earnings from operations by segment:                        
Jack in the Box restaurant operations     $ 63,146       $ 64,313       $ 148,836       $ 145,168  
Qdoba restaurant operations     10,623       8,778       19,360       23,460  
Shared services and unallocated costs     (20,980 )     (26,203 )     (53,711 )     (59,354 )
(Losses) gains on the sale of company-operated restaurants     (3 )     (5,020 )     815       (4,170 )
Consolidated earnings from operations     52,786       41,868       115,300       105,104  
Interest expense, net     6,911       4,220       15,086       9,433  
Consolidated earnings from continuing operations and before income taxes     $ 45,875       $ 37,648       $ 100,214       $ 95,671  
Total depreciation expense by segment:                        
Jack in the Box restaurant operations     $ 15,059       $ 14,699       $ 35,532       $ 34,314  
Qdoba restaurant operations     4,279       4,035       9,867       9,315  
Shared services and unallocated costs     1,310       1,612       3,535       3,872  
Consolidated depreciation expense     $ 20,648       $ 20,346       $ 48,934       $ 47,501  
                                         

The following table summarizes the year-to-date changes in the number and mix of Jack in the Box ("JIB") and Qdoba company and franchise restaurants:

 
SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION
(Unaudited)
             
      April 10, 2016     April 12, 2015
      Company     Franchise     Total     Company     Franchise     Total
Jack in the Box:                                    
Beginning of year     413       1,836       2,249       431       1,819       2,250  
New           5       5       2       11       13  
Refranchised     (1 )     1             (21 )     21        
Acquired from franchisees     1       (1 )           6       (6 )      
Closed           (3 )     (3 )     (6 )     (9 )     (15 )
End of period     413       1,838       2,251       412       1,836       2,248  
% of JIB system     18 %     82 %     100 %     18 %     82 %     100 %
Qdoba:                                    
Beginning of year     322       339       661       310       328       638  
New     19       10       29       3       11       14  
Closed     (3 )     (4 )     (7 )     (3 )     (5 )     (8 )
End of period     338       345       683       310       334       644  
% of Qdoba system     49 %     51 %     100 %     48 %     52 %     100 %
Consolidated:                                    
Total system     751       2,183       2,934       722       2,170       2,892  
% of consolidated system     26 %     74 %     100 %     25 %     75 %     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

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Hungry Howie's Pizza
Hungry Howie's is currently EXPANDING! Top Markets are available for single or multiple unit development. Get the EDGE over the competition with...
BirthdayPak
BirthdayPak is an award-winning marketing platform that brings local upscale businesses together with their best customers.
HYPOXI
Operated in studios across the globe, HYPOXI is proven not only to be an effective weight loss solution for men and women, but is also a popular...
FIT36®
Start a fitness business with one of the best, manager-run franchise models in the industry. FIT36® delivers a proven business model backed by a...
Papa Murphy's Take 'N' Bake Pizza
The world's largest, fastest growing Take 'N' Bake pizza franchise is offering you something fresh.

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)