What is in this article?:
- Jack in the Box: Health care impact won't be severe
- Maintaining sales momentum
CFO says company will likely be able to mitigate costs associated with health care mandate
Maintaining sales momentum
For the full fiscal year, Jack in the Box Inc. recorded net earnings of $57.7 million, or $1.31 per share, compared with $80.6 million, or $1.63 per share, the prior year. Revenue declined 7 percent to $1.5 billion.
Same-store sales, however, increased 3.4 percent for Jack in the Box and 2.4 percent for Qdoba for the year, which officials attributed to traffic gains combined with increases in average check, said Linda Lang, Jack in the Box Inc.’s chair and chief executive.
“Jack in the Box same-store sales growth for the quarter was almost double that of the QSR sandwich segment for the comparable period, according to The NPD Group’s SalesTrack Weekly for the 12-week time period ended Sept. 30,” said Lang. “We believe the same-store sales increases we’ve experienced over the last eight quarters demonstrate our ability to continue to drive sustainable sales and market share growth at the Jack in the Box brand.”
Lang said restructuring efforts will continue into next year, though not with the same vigor as this year.
During the quarter, seven new Jack in the Box restaurants opened, including two franchised locations, for a total of 2,250. In an ongoing refranchising program, the company sold 97 locations to franchisees this year. The chain was 76-percent franchised at the end of the quarter.
Qdoba opened 24 new restaurants, including 12 franchised units, for a total of 627.
In its outlook for 2013, the company is expecting same-store sales to increase 1 percent to 2 percent for Jack in the Box company-owned locations during the first quarter. For the year, the projection is a 2 percent to 3 percent increase in same-store sales.
Officials expect Qdoba’s same-store sales at company-owned units to increase between 1 percent and 2 percent in the first quarter, or between 2 percent to 3 percent for fiscal 2013.
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