Qdoba Mexican Grill’s systemwide same-store sales grew 14 percent during the first quarter, ending Jan. 18, parent Jack in the Box Inc. said Tuesday.
Company officials credited the fast-casual chain’s recent shift to a simplified menu pricing structure, which lets customers add guacamole or queso sauce without an upcharge.
“Qdoba same-store sales in the first quarter increased 12.9 percent for company restaurants and 14 percent systemwide, as the implementation of our new simplified menu pricing structure was well received by our guests,” said Lenny Comma, Jack in the Box Inc. chairman and CEO, in a statement. “In addition, company same-store sales reflected positive traffic, less discounting and double-digit growth in catering sales.”
The company’s core Jack in the Box brand reported a systemwide same-store sales increase of 4.4 percent during the quarter, saying transactions at company restaurants were positive and sales increased across all dayparts, with breakfast and late-night remaining the strongest.
Excluding impairment and other charges from the closure last year of 62 underperforming Qdoba locations, net income from continuing operations increased 12 percent, to $37.1 million, or 94 cents per share, compared with $33 million, or 75 per share, a year ago.
For the second quarter, the company projected same-store sales to rise between 5 percent to 7 percent at Jack in the Box company restaurants and between 7 percent to 9 percent at Qdoba company units.
For the year, the company projected a 3.5-percent to 4.5-percent increase in same-store sales for Jack in the Box and a 7.5-percent to 9.5-percent increase for Qdoba.
The San Diego-based company expects to open 10 to 15 Jack in the Box units and 50 to 60 new Qdoba restaurants in fiscal 2015.
Jack in the Box Inc. operates or franchises 2,200 Jack in the Box locations and more than 600 Qdoba restaurants.
1Q NET INCOME
Result: $35.8 million, or 91 cents per share% Increase: 10% (from $32.3 million, or 74 cents per share)
1Q REVENUE
Result: $468.6 million% Increase: 4% (from $450.1 million)
1Q SAME-STORE SALES
% Increase Jack in the Box systemwide: 4.4%
% Increase Jack in the Box corporate: 3.9%
% Increase Jack in the Box franchised: 4.6%
% Increase Qdoba Mexican Grill systemwide: 14%
% Increase Qdoba corporate: 12.9%
% Increase Qdoba franchised: 15.1%
Source: Company report
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