Exhibit 99.1
Jack in the Box Inc. Reports Second Quarter FY 2013 Earnings; Updates Guidance for FY 2013
SAN DIEGO--(BUSINESS WIRE)--May 15, 2013--Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $13.4 million, or $0.30 per diluted share, for the second quarter ended April 14, 2013, compared with earnings from continuing operations of $21.6 million, or $0.48 per diluted share, for the second quarter of fiscal 2012.
Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, were $0.33 per share in the second quarter of fiscal 2013 compared with $0.30 per share in the prior year quarter.
During the second quarter of fiscal 2013, the company recognized a pre-tax loss of $2.7 million, or approximately 4 cents per diluted share, related to the expected sale of 16 restaurants in one market that is anticipated to be completed by the end of the fiscal year. The company also refranchised four Jack in the Box® restaurants, which generated a gain of approximately $0.01 per diluted share. The resulting loss from refranchising of approximately $0.03 per diluted share for the quarter compares with a gain from refranchising of approximately $0.21 per diluted share in the prior year quarter.
A reconciliation of non-GAAP measurements to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.
| | 12 Weeks Ended | | 28 Weeks Ended |
| | April 14,
2013 | April 15,
2012 | | April 14,
2013 | April 15,
2012 |
Diluted earnings per share from
continuing operations – GAAP | | $ | 0.30 | $ | 0.48 | | | $ | 0.84 | $ | 0.75 | |
| Plus: Restructuring charges | | | - | | 0.02 | | | | 0.02 | | 0.02 | |
| Less: (Gains)/losses from refranchising | | | 0.03 | | (0.21 | ) | | | 0.03 | | (0.22 | ) |
| Operating earnings per share – Non-GAAP | | $ | 0.33 | $ | 0.30 | | | $ | 0.88 | $ | 0.55 | |
The company is continuing its efforts to lower its cost structure and identify opportunities to reduce G&A as well as improve restaurant profitability across both brands. As a result, restructuring charges of $0.3 million were recorded during the second quarter of 2013 as compared to $1.5 million, or approximately $0.02 per diluted share in the prior year quarter. These charges are included in “impairment and other charges, net” in the accompanying condensed consolidated statements of earnings. The company expects to incur additional restructuring charges in fiscal 2013 relating to this review.
As previously announced, during the fourth quarter of 2012, the company began outsourcing its distribution business, and the transition was completed in the first quarter of fiscal 2013. As a result of the outsourcing, the company recorded an after-tax charge of $0.1 million in the second quarter and $3.3 million in the first quarter of fiscal 2013, which reduced year-to-date diluted net earnings per share by approximately $0.08. This charge and the results of operations for the distribution business are included in discontinued operations in the accompanying condensed consolidated statements of earnings for all periods presented.
Increase (decrease) in same-store sales:
| | | | 12 Weeks Ended
April 14, 2013 | | 12 Weeks Ended
April 15, 2012 | | 28 Weeks Ended
April 14, 2013 | | 28 Weeks Ended
April 15, 2012 |
| Jack in the Box®: | | | | | | | | |
| Company | | 0.9 | % | | 5.6 | % | | 1.6 | % | | 5.5 | % |
| Franchise | | (0.2 | %) | | 3.6 | % | | 0.9 | % | | 3.1 | % |
| System | | 0.1 | % | | 4.2 | % | | 1.1 | % | | 3.8 | % |
| Qdoba®: | | | | | | | | |
| Company | | (2.0 | %) | | 3.8 | % | | (0.1 | %) | | 3.7 | % |
| Franchise | | (0.9 | %) | | 2.2 | % | | (0.1 | %) | | 3.2 | % |
| System | | (1.5 | %) | | 3.0 | % | | (0.1 | %) | | 3.4 | % |
| | | | | | | | | | | | | |
Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 0.9 percent during the quarter, accelerating in the last two months of the quarter after a slow start which we attributed to pressures on consumer spending due to higher payroll taxes, delayed tax refunds and the rapid increase in gas prices in the last part of January and first half of February. Jack in the Box system same-store sales growth for the quarter exceeded that of the QSR sandwich segment by 1.9 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 14, 2013. Included in this segment are 15 of the top QSR sandwich and burger chains in the US. And on a weekly basis, the brand outperformed the segment for 11 out of the 12 weeks.
“Qdoba same-store sales in the second quarter decreased 2.0 percent for company restaurants, and were adversely affected by more severe winter weather in the quarter than last year, which we believe resulted in approximately 150 basis points of unfavorable impact,” Lang said.
Consolidated restaurant operating margin improved by 30 basis points to 15.8 percent of sales in the second quarter of 2013, compared with 15.5 percent of sales in the year-ago quarter.
Restaurant operating margin increased 160 basis points to 17.1% of sales for Jack in the Box. The improvement was due primarily to leverage from same-store sales increases and the benefit of refranchising, as well as slightly lower food and packaging costs. The decrease in food and packaging costs as a percentage of sales was due primarily to the benefit of price increases and favorable product mix which were partially offset by commodity inflation of approximately 2.6 percent.
Restaurant operating margin decreased 340 basis points to 12.2% of sales for Qdoba, due primarily to sales deleverage and greater promotional activity, as well as commodity inflation of approximately 1.8 percent.
SG&A expense for the second quarter decreased by $1.5 million and was 14.9 percent of revenues, the same percentage as the prior year quarter. The decrease in SG&A costs was due, in part, to the benefit of the company’s restructuring activities, lower advertising and overhead costs resulting from the Jack in the Box refranchising strategy, and a decrease in pre-opening costs. These decreases were partially offset by higher incentive and share-based compensation, increased advertising and G&A related to Qdoba growth, and higher pension costs. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $1.4 million in the second quarter as compared to a positive impact of $1.1 million in last year’s second quarter, resulting in a year-over-year decrease in SG&A of $0.3 million.
Impairment and other charges decreased $2.7 million in the quarter compared to a year ago, including a $1.2 million decrease in restructuring charges.
The tax rate for the second quarter of 2013 was 37.1 percent versus 34.1 percent for the second quarter of 2012. The tax rate in the second quarter of fiscal 2013 was affected by the timing of Work Opportunity Tax Credits.
The company repurchased approximately 421,000 shares of its common stock in the second quarter at an average price of $34.28 per share for an aggregate cost of $14.4 million. This leaves $35.6 million remaining under a $100 million stock-buyback program authorized by the company’s board of directors that expires in November 2013, and $100 million remaining under a subsequent authorization that expires in November 2014.
Restaurant openings
Three new franchised Jack in the Box restaurants opened in the second quarter of fiscal 2013, compared with 7 new restaurants opened system-wide during the same quarter last year, of which 3 were franchised.
In the second quarter, 15 Qdoba restaurants opened, including 6 franchised locations, versus 8 new restaurants in the year-ago quarter, of which 6 were franchised. The company also acquired 6 Qdoba restaurants from franchisees in the quarter, compared with 25 in the prior year quarter.
At April 14, 2013, the company’s system total comprised 2,256 Jack in the Box restaurants, including 1,710 franchised locations, and 647 Qdoba restaurants, including 307 franchised locations.
Guidance
The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 7, 2013, and the fiscal year ending September 29, 2013. Fiscal 2013 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.
Third quarter fiscal year 2013 guidance
- Same-store sales are expected to increase approximately 1 to 3 percent at Jack in the Box company restaurants versus a 3.4 percent increase in the year-ago quarter.
- Same-store sales are expected to be approximately flat at Qdoba company restaurants versus a 3.3 percent increase in the year-ago quarter.
Fiscal year 2013 guidance
- Same-store sales are expected to increase approximately 1.5 to 2.5 percent at Jack in the Box company restaurants.
- Same-store sales are expected to be approximately flat to up 1.0 percent at Qdoba company restaurants.
- Overall commodity costs are expected to increase by approximately 2 to 2.5 percent for the full year.
- Restaurant operating margin for the full year is expected to be approximately 16.0 percent, depending on same-store sales and commodity inflation.
- SG&A as a percentage of revenue is expected to be in the high-14 percent range as compared to 14.7% in fiscal 2012. G&A as a percentage of system-wide sales is expected to decline to approximately 4.4% in fiscal 2013 from 4.6% in fiscal 2012. The increase in expected SG&A costs as compared to the company’s previous guidance is due primarily to higher anticipated incentive compensation.
- Impairment and other charges as a percentage of revenue are expected to be approximately 70 basis points, excluding restructuring charges.
- The company no longer provides guidance with respect to refranchising gains or proceeds.
- Approximately 20 new Jack in the Box restaurants are expected to open, including approximately 6 company locations.
- 70 to 75 new Qdoba restaurants are expected to open, of which approximately 40 are expected to be company locations.
- Capital expenditures are expected to be $95 to $105 million.
- The tax rate is expected to be approximately 35 to 36 percent.
- Operating earnings per share, which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains from refranchising, are now expected to range from $1.55 to $1.65 in fiscal 2013 as compared to operating earnings per share of $1.20 in fiscal 2012.
- Diluted earnings per share includes approximately $0.03 of incentive payments to Jack in the Box franchisees in fiscal 2013 to complete the installation of new signage as compared to $0.11 in fiscal 2012 to complete the re-image program.
- Diluted weighted-average shares outstanding for the full year are expected to be approximately the same as last year.
Conference call
The company will host a conference call for financial analysts and investors on Thursday, May 16, 2013, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on May 16.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 600 restaurants in 44 states, the District of Columbia and Canada. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.
Safe harbor statement
This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the following: the success of new products and marketing initiatives; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, and risks relating to expansion into new markets; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.
JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)
Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.
| | 12 Weeks Ended | | 28 Weeks Ended |
| | April 14,
2013 | April 15,
2012 | | April 14,
2013 | April 15,
2012 |
Diluted earnings per share from
continuing operations – GAAP | | $ | 0.30 | $ | 0.48 | | | $ | 0.84 | $ | 0.75 | |
| Plus: Restructuring charges | | | - | | 0.02 | | | | 0.02 | | 0.02 | |
| Less: (Gains)/losses from refranchising | | | 0.03 | | (0.21 | ) | | | 0.03 | | (0.22 | ) |
| Operating earnings per share – Non-GAAP | | $ | 0.33 | $ | 0.30 | | | $ | 0.88 | $ | 0.55 | |
| JACK IN THE BOX INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| (In thousands, except per share data) |
| (Unaudited) |
| |
| | Quarter | | Year-to-Date |
| | April 14, 2013 | | April 15, 2012 | | April 14, 2013 | | April 15, 2012 |
| Revenues: | | | | | | | | |
| Company restaurant sales | | $ | 277,197 | | | $ | 290,803 | | | $ | 637,291 | | | $ | 654,905 | |
| Franchise revenues | | | 78,426 | | | | 75,681 | | | | 183,855 | | | | 169,500 | |
| | | 355,623 | | | | 366,484 | | | | 821,146 | | | | 824,405 | |
| Operating costs and expenses, net: | | | | | | | | |
| Company restaurant costs: | | | | | | | | |
| Food and packaging | | | 90,688 | | | | 94,910 | | | | 206,789 | | | | 217,017 | |
| Payroll and employee benefits | | | 79,620 | | | | 84,566 | | | | 183,684 | | | | 191,377 | |
| Occupancy and other | | | 63,152 | | | | 66,184 | | | | 146,506 | | | | 152,127 | |
| Total company restaurant costs | | | 233,460 | | | | 245,660 | | | | 536,979 | | | | 560,521 | |
| Franchise costs | | | 39,661 | | | | 37,996 | | | | 92,149 | | | | 87,855 | |
| Selling, general and administrative expenses | | | 52,972 | | | | 54,497 | | | | 120,308 | | | | 120,214 | |
| Impairment and other charges, net | | | 2,382 | | | | 5,074 | | | | 5,645 | | | | 9,425 | |
| Losses (gains) on the sale of company-operated restaurants | | | 2,418 | | | | (14,078 | ) | | | 1,670 | | | | (15,200 | ) |
| | | 330,893 | | | | 329,149 | | | | 756,751 | | | | 762,815 | |
| Earnings from operations | | | 24,730 | | | | 37,335 | | | | 64,395 | | | | 61,590 | |
| Interest expense, net | | | 3,426 | | | | 4,534 | | | | 8,791 | | | | 10,591 | |
| Earnings from continuing operations and before income taxes | | | 21,304 | | | | 32,801 | | | | 55,604 | | | | 50,999 | |
| Income taxes | | | 7,894 | | | | 11,169 | | | | 18,250 | | | | 17,417 | |
| Earnings from continuing operations | | | 13,410 | | | | 21,632 | | | | 37,354 | | | | 33,582 | |
| Losses from discontinued operations, net of income tax benefit | | | (120 | ) | | | - | | | | (3,375 | ) | | | - | |
| Net earnings | | $ | 13,290 | | | $ | 21,632 | | | $ | 33,979 | | | $ | 33,582 | |
| | | | | | | | |
| Net earnings per share - basic: | | | | | | | | |
| Earnings from continuing operations | | $ | 0.31 | | | $ | 0.49 | | | $ | 0.86 | | | $ | 0.77 | |
| Losses from discontinued operations | | | — | | | | — | | | | (0.08 | ) | | | — | |
| Net earnings per share (1) | | $ | 0.30 | | | $ | 0.49 | | | $ | 0.78 | | | $ | 0.77 | |
| Net earnings per share - diluted: | | | | | | | | |
| Earnings from continuing operations | | $ | 0.30 | | | $ | 0.48 | | | $ | 0.84 | | | $ | 0.75 | |
| Losses from discontinued operations | | | — | | | | — | | | | (0.08 | ) | | | — | |
| Net earnings per share (1) | | $ | 0.29 | | | $ | 0.48 | | | $ | 0.76 | | | $ | 0.75 | |
| | | | | | | | |
| Weighted-average shares outstanding: | | | | | | | | |
| Basic | | | 43,747 | | | | 43,937 | | | | 43,319 | | | | 43,896 | |
| Diluted | | | 45,274 | | | | 44,911 | | | | 44,736 | | | | 44,775 | |
| | | | | | | | | |
| (1) Earnings per share may not add due to rounding | | | | | | | | |
JACK IN THE BOX INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Dollars in thousands, except share data) |
| (Unaudited) |
| |
| | April 14, 2013 | | September 30, 2012 |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 10,202 | | | $ | 8,469 | |
| Accounts and other receivables, net | | | 52,185 | | | | 78,798 | |
| Inventories | | | 8,713 | | | | 7,752 | |
| Prepaid expenses | | | 31,992 | | | | 32,821 | |
| Deferred income taxes | | | 26,931 | | | | 26,932 | |
| Assets held for sale and leaseback | | | 39,569 | | | | 45,443 | |
| Assets of discontinued operations held for sale | | | — | | | | 30,591 | |
| Other current assets | | | 452 | | | | 375 | |
| Total current assets | | | 170,044 | | | | 231,181 | |
| Property and equipment, at cost | | | 1,543,068 | | | | 1,529,650 | |
| Less accumulated depreciation and amortization | | | (736,854 | ) | | | (708,858 | ) |
| Property and equipment, net | | | 806,214 | | | | 820,792 | |
| Goodwill | | | 148,935 | | | | 140,622 | |
| Other assets, net | | | 276,544 | | | | 271,130 | |
| | $ | 1,401,737 | | | $ | 1,463,725 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
| Current liabilities: | | | | |
| Current maturities of long-term debt | | $ | 20,960 | | | $ | 15,952 | |
| Accounts payable | | | 24,123 | | | | 94,713 | |
| Accrued liabilities | | | 160,581 | | | | 164,637 | |
| Total current liabilities | | | 205,664 | | | | 275,302 | |
| Long-term debt, net of current maturities | | | 369,728 | | | | 405,276 | |
| Other long-term liabilities | | | 369,667 | | | | 371,202 | |
| Stockholders’ equity: | | | | |
| Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued | | | — | | | | — | |
| Common stock $0.01 par value, 175,000,000 shares authorized, 77,559,191 and 75,827,894 issued, respectively | | | 776 | | | | 758 | |
| Capital in excess of par value | | | 266,500 | | | | 221,100 | |
| Retained earnings | | | 1,154,650 | | | | 1,120,671 | |
| Accumulated other comprehensive loss | | | (129,344 | ) | | | (136,013 | ) |
| Treasury stock, at cost, 33,362,162 and 31,955,606 shares, respectively | | | (835,904 | ) | | | (794,571 | ) |
| Total stockholders’ equity | | | 456,678 | | | | 411,945 | |
| | $ | 1,401,737 | | | $ | 1,463,725 | |
| JACK IN THE BOX INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Dollars in thousands) |
| (Unaudited) |
| |
| | Year-to-Date |
| | April 14, 2013 | | April 15, 2012 |
| Cash flows from operating activities: | | | | |
| Net earnings | | $ | 33,979 | | | $ | 33,582 | |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | |
| Depreciation and amortization | | | 52,590 | | | | 51,874 | |
| Deferred finance cost amortization | | | 1,249 | | | | 1,431 | |
| Deferred income taxes | | | 2,536 | | | | (2,560 | ) |
| Share-based compensation expense | | | 7,599 | | | | 3,562 | |
| Pension and postretirement expense | | | 16,772 | | | | 14,372 | |
| Gains on cash surrender value of company-owned life insurance | | | (5,669 | ) | | | (8,427 | ) |
Losses (gains) on the sale of company-operated restaurants | | | 1,670 | | | | (15,200 | ) |
| Losses on the disposition of property and equipment | | | 416 | | | | 2,858 | |
| Impairment charges and other | | | 4,828 | | | | 2,109 | |
| Loss on early retirement of debt | | | 939 | | | | — | |
| Changes in assets and liabilities, excluding acquisitions and dispositions: | | | | |
| Accounts and other receivables | | | 25,227 | | | | (8,680 | ) |
| Inventories | | | 25,883 | | | | 5,213 | |
| Prepaid expenses and other current assets | | | 751 | | | | (4,627 | ) |
| Accounts payable | | | (32,036 | ) | | | (6,178 | ) |
| Accrued liabilities | | | (4,256 | ) | | | 6,237 | |
| Pension and postretirement contributions | | | (7,052 | ) | | | (6,573 | ) |
| Other | | | (3,821 | ) | | | 595 | |
| Cash flows provided by operating activities | | | 121,605 | | | | 69,588 | |
| Cash flows from investing activities: | | | | |
| Purchases of property and equipment | | | (41,754 | ) | | | (40,609 | ) |
| Purchases of assets intended for sale and leaseback | | | (25,165 | ) | | | (22,000 | ) |
| Proceeds from sale and leaseback of assets | | | 22,892 | | | | 9,312 | |
| Proceeds from the sale of company-operated restaurants | | | 2,866 | | | | 21,964 | |
| Collections on notes receivable | | | 2,987 | | | | 9,669 | |
| Disbursements for loans to franchisees | | | — | | | | (3,977 | ) |
| Acquisitions of franchise-operated restaurants | | | (11,014 | ) | | | (39,195 | ) |
| Other | | | 3,694 | | | | 244 | |
| Cash flows used in investing activities | | | (45,494 | ) | | | (64,592 | ) |
| Cash flows from financing activities: | | | | |
| Borrowings on revolving credit facilities | | | 479,000 | | | | 333,020 | |
| Repayments of borrowings on revolving credit facilities | | | (539,000 | ) | | | (308,324 | ) |
| Proceeds from issuance of debt | | | 200,000 | | | | — | |
| Principal repayments on debt | | | (170,540 | ) | | | (10,662 | ) |
| Debt issuance costs | | | (4,392 | ) | | | (741 | ) |
| Proceeds from issuance of common stock | | | 37,113 | | | | 2,015 | |
| Repurchases of common stock | | | (40,465 | ) | | | (6,901 | ) |
| Excess tax benefits from share-based compensation arrangements | | | 599 | | | | 287 | |
| Change in book overdraft | | | (36,693 | ) | | | (13,806 | ) |
| Cash flows used in financing activities | | | (74,378 | ) | | | (5,112 | ) |
| Net increase (decrease) in cash and cash equivalents | | | 1,733 | | | | (116 | ) |
| Cash and cash equivalents at beginning of period | | | 8,469 | | | | 11,424 | |
| Cash and cash equivalents at end of period | | $ | 10,202 | | | $ | 11,308 | |
| JACK IN THE BOX INC. AND SUBSIDIARIES |
| SUPPLEMENTAL INFORMATION |
| (Unaudited) |
| | | | | | | |
| The following table presents certain income and expense items included in our consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding. |
| | | | | | | |
| CONSOLIDATED STATEMENTS OF EARNINGS DATA |
| |
| Quarter | | Year-to-Date |
| April 14, 2013 | | April 15, 2012 | | April 14, 2013 | | April 15, 2012 |
| Revenues: | | | | | | | |
| Company restaurant sales | 77.9 | % | | 79.3 | % | | 77.6 | % | | 79.4 | % |
| Franchise revenues | 22.1 | % | | 20.7 | % | | 22.4 | % | | 20.6 | % |
| Total revenues | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
| Operating costs and expenses, net: | | | | | | | |
| Company restaurant costs: | | | | | | | |
| Food and packaging (1) | 32.7 | % | | 32.6 | % | | 32.4 | % | | 33.1 | % |
| Payroll and employee benefits (1) | 28.7 | % | | 29.1 | % | | 28.8 | % | | 29.2 | % |
| Occupancy and other (1) | 22.8 | % | | 22.8 | % | | 23.0 | % | | 23.2 | % |
| Total company restaurant costs (1) | 84.2 | % | | 84.5 | % | | 84.3 | % | | 85.6 | % |
| Franchise costs (1) | 50.6 | % | | 50.2 | % | | 50.1 | % | | 51.8 | % |
| Selling, general and administrative expenses | 14.9 | % | | 14.9 | % | | 14.7 | % | | 14.6 | % |
| Impairment and other charges, net | 0.7 | % | | 1.4 | % | | 0.7 | % | | 1.1 | % |
| Gains on the sale of company-operated restaurants | 0.7 | % | | (3.8 | )% | | 0.2 | % | | (1.8 | )% |
| Earnings from operations | 7.0 | % | | 10.2 | % | | 7.8 | % | | 7.5 | % |
| Income tax rate (2) | 37.1 | % | | 34.1 | % | | 32.8 | % | | 34.2 | % |
| | | | | | | | |
| (1) As a percentage of the related sales and/or revenues. |
| (2) As a percentage of earnings from continuing operations and before income taxes. | | | | |
| The following table presents Jack in the Box and Qdoba company restaurant sales, costs and costs as a percentage of the related sales. Percentages may not add due to rounding. |
| | | | | | | | | | | | | | | |
| SUPPLEMENTAL COMPANY-OPERATED RESTAURANTS STATEMENTS OF EARNINGS DATA |
| (Dollars in thousands) |
| |
| Quarter | | Year-to-Date |
| April 14, 2013 | | April 15, 2012 | | April 14, 2013 | | April 15, 2012 |
Jack in the Box: | | | | | | | | | | | | | | | |
| Company restaurant sales | $ | 203,439 | | | | $ | 227,828 | | | | $ | 470,615 | | | | $ | 522,181 | | |
| Company restaurant costs: | | | | | | | | | | | | | | | |
| Food and packaging | | 68,195 | | 33.5 | % | | | 76,508 | | 33.6 | % | | | 155,993 | | 33.1 | % | | | 178,098 | | 34.1 | % |
| Payroll and employee benefits | | 58,108 | | 28.6 | % | | | 67,128 | | 29.5 | % | | | 135,110 | | 28.7 | % | | | 153,697 | | 29.4 | % |
| Occupancy and other | | 42,421 | | 20.9 | % | | | 48,900 | | 21.5 | % | | | 99,009 | | 21.0 | % | | | 114,191 | | 21.9 | % |
| Total company restaurant costs | $ | 168,724 | | 82.9 | % | | $ | 192,536 | | 84.5 | % | | $ | 390,112 | | 82.9 | % | | $ | 445,986 | | 85.4 | % |
| Qdoba: | | | | | | | | | | | | | | | |
| Company restaurant sales | $ | 73,758 | | | | $ | 62,975 | | | | $ | 166,676 | | | | $ | 132,724 | | |
| Company restaurant costs: | | | | | | | | | | | | | | | |
| Food and packaging | | 22,493 | | 30.5 | % | | | 18,402 | | 29.2 | % | | | 50,796 | | 30.5 | % | | | 38,919 | | 29.3 | % |
| Payroll and employee benefits | | 21,512 | | 29.2 | % | | | 17,438 | | 27.7 | % | | | 48,574 | | 29.1 | % | | | 37,680 | | 28.4 | % |
| Occupancy and other | | 20,731 | | 28.1 | % | | | 17,284 | | 27.4 | % | | | 47,497 | | 28.5 | % | | | 37,936 | | 28.6 | % |
| Total company restaurant costs | $ | 64,736 | | 87.8 | % | | $ | 53,124 | | 84.4 | % | | $ | 146,867 | | 88.1 | % | | $ | 114,535 | | 86.3 | % |
| JACK IN THE BOX INC. AND SUBSIDIARIES |
| SUPPLEMENTAL INFORMATION |
| (Unaudited) |
| | | | | | | | | | | | |
| The following table summarizes the changes in the number and mix of Jack in the Box and Qdoba company and franchise restaurants in each fiscal year: |
| |
| | April 14, 2013 | | April 15, 2012 |
| | Company | | Franchise | | Total | | Company | | Franchise | | Total |
| Jack in the Box: | | | | | | | | | | | | |
| Beginning of year | | 547 | | | 1,703 | | | 2,250 | | | 629 | | | 1,592 | | | 2,221 | |
| New | | 3 | | | 9 | | | 12 | | | 9 | | | 14 | | | 23 | |
Refranchised | | (4 | ) | | 4 | | | — | | | (37 | ) | | 37 | | | — | |
| Acquired from franchisees | | 1 | | | (1 | ) | | — | | | — | | | — | | | — | |
| Closed | | (1 | ) | | (5 | ) | | (6 | ) | | — | | | (2 | ) | | (2 | ) |
| End of period | | 546 | | | 1,710 | | | 2,256 | | | 601 | | | 1,641 | | | 2,242 | |
| % of Jack in the Box system | | 24 | % | | 76 | % | | 100 | % | | 27 | % | | 73 | % | | 100 | % |
| % of consolidated system | | 62 | % | | 85 | % | | 78 | % | | 68 | % | | 84 | % | | 79 | % |
| Qdoba: | | | | | | | | | | | | |
| Beginning of year | | 316 | | | 311 | | | 627 | | | 245 | | | 338 | | | 583 | |
| New | | 12 | | | 20 | | | 32 | | | 8 | | | 15 | | | 23 | |
| Acquired from franchisees | | 12 | | | (12 | ) | | — | | | 36 | | | (36 | ) | | — | |
| Closed | | — | | | (12 | ) | | (12 | ) | | — | | | (1 | ) | | (1 | ) |
| End of period | | 340 | | | 307 | | | 647 | | | 289 | | | 316 | | | 605 | |
| % of Qdoba system | | 53 | % | | 47 | % | | 100 | % | | 48 | % | | 52 | % | | 100 | % |
| % of consolidated system | | 38 | % | | 15 | % | | 22 | % | | 32 | % | | 16 | % | | 21 | % |
| Consolidated: | | | | | | | | | | | | |
| Total system | | 886 | | | 2,017 | | | 2,903 | | | 890 | | | 1,957 | | | 2,847 | |
| % of consolidated system | | 31 | % | | 69 | % | | 100 | % | | 31 | % | | 69 | % | | 100 | % |
CONTACT:
Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, (858) 571-2407
Media Contact:
Brian Luscomb, (858) 571-2291
