SAN DIEGO Jack in the Box Inc.'s first-quarter income jumped 48.1-percent from a year earlier on increased sales and improved restaurant operating margins, the company reported Wednesday.
For the first quarter of fiscal 2007, ended Jan. 21, Jack in the Box earned $37.4 million, or $1.03 per share, compared with $25.2 million, or 70 cents per share, in the same quarter a year earlier. Revenues for the latest quarter rose 5.3 percent to $856.7 million. Same-store sales at Jack in the Box corporate restaurants increased 5.6 percent. Systemwide same-store sales at Qdoba increased 4.1 percent.
The company, which operates or franchises more than 2,000 namesake quick-service restaurants, more than 300 Qdoba Mexican Grill restaurants and about 50 Quick Stuff convenience store locations, said its first-quarter performance was driven by increased sales leverage, lower food costs, a lower tax rate and the delayed rollout of new employee uniforms, the costs of which will now be recorded in the second quarter.
Also during the quarter, Jack in the Box closed a new $625 million credit facility used to retire debt and to fund its modified Dutch auction tender offer, which resulted in the repurchase of 2.3 million shares of its common stock, or about 6 percent of the then shares outstanding, for $143.1 million. The company reported Wednesday that its board of directors authorized an additional repurchase of 3.3 million shares, or about 9.7 percent of shares outstanding, in the open market during this year.
