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SD-based Jack in the Box reports higher earnings

Posted at 1:41 PM, May 11, 2016
and last updated 2016-05-11 16:41:38-04

San Diego-based Jack in the Box today reported net income of $28.7 million, or 84 cents per diluted share, in the second quarter of its fiscal year.

That compares to $23 million, or 60 cents per diluted share, in the same period last year.

"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," said Chairman and CEO Lenny Comma.

"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," Comma said. "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."

He said that in late January, multiple upgrades to the menu at Jack in the Box restaurants were introduced system-wide.

The company noted that increases in California's minimum wage increased costs were offset by favorable food and packaging expenses.