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Jack in the Box posts 25% jump in profits

SAN DIEGO Jack in the Box Inc. cited reduced costs and skyrocketing sales at its namesake quick-service chain as driving factors behind its near 25-percent year-over-year jump in second-quarter profit.

The company also raised its full-year, per-share earnings guidance, reflecting confidence in its efforts to continue building sales through new menu offerings and re-imaged restaurants, even in spite of rising beef costs expected for the remainder of the year. The company expects its full-year same-store sales to increase between 5 percent and 6 percent at namesake corporate units.

Full-year, per-share earnings are now expected to total between $3.45 per share and $3.50 per share, up from previous expectations between $3.27 per share and $3.33 per share. A year-ago, the company earned $3.03 per share.

For the company's second quarter ended April 15, Jack in the Box posted net income of $27.2 million, or 80 cents per share, compared with profit of $21.8 million, or 61 cents per share, a year ago.

Latest-quarter corporate revenues for Jack in the Box, which also operates or franchises the Qdoba Mexican Grill fast-casual chain, rose 6.8 percent to $660.7 million. Same-store sales at Jack in the Box corporate restaurants increased 6.4 percent. Systemwide same-store sales at Qdoba increased 3.5 percent.

The company said its cost savings came from lower utility, food and packaging expenses.

The Jack in the Box chain drove second-quarter sales through menu offerings like the Steak 'n' Mushroom Ciabatta sandwich and grilled cheese sandwiches for kids, it said, as well as through the reimaging of 56 locations, which have generated more guest visits and gained "more loyal users" than older units. Jack in the Box plans to reimage between 150 and 200 units in fiscal 2007, which ends in October. New menu items include the recently introduced 100-percent Sirloin Burger.

The company's system totals 2,098 company and franchised Jack in the Box restaurants, including 57 with Quick Stuff convenience stores, and 353 company and franchised Qdoba restaurants.

TAGS: Finance
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