• Home:
• News:
• Jack in the Box:

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

By: Jack in the Box |  1,014 Shares     104 Reads

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

###

Comments:

comments powered by Disqus