Jack in the Box Inc. (JACK) Wednesday reported a decline in second-quarter profit, due to lower revenues with same-store sales at namesake restaurants muted as higher payroll taxes and increased gas prices hurt consumer spend, while Qdoba restaurants bore the brunt of the inclement winter weather.
The company raised its operating earnings outlook for fiscal year 2013, and indicated sustained efforts at cutting costs.
Jack in the Box operates namesake quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants.
The San Diego, California-based company posted quarterly net earnings of $13 million or $0.29 per share, a decline from $21.6 million or $0.48 per share last year.
Excluding restructuring charges and gains/losses from refranchising, operating earnings were $0.33 per share, compared with $0.30 per share last year.
On average, 16 analysts polled by Thomson Reuters estimated earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter dropped to $355.6 million from $366.5 million a year ago.
Analysts had consensus revenue estimate of $358.87 million for the quarter.
System wide same-store sales at Jack in the Box restaurants edged up 0.1 percent in the quarter, with a 1.5 percent decline at Qdoba.
While restaurant operating margin increased 160 basis points for Jack in the Box, it slid 340 basis points at Qdoba, due mainly to sales deleverage and greater promotional activity.
For the third quarter, the company expects same-store sales to increase 1 to 3 percent at Jack in the Box company restaurants, while it is to be almost flat at Qdoba company outlets.
For fiscal year 2013, the company now expects operating earnings of $1.55 to $1.65 per share, up from prior range of $1.48 to $1.63 per share. Analysts currently expect earnings of $1.61 per share for the year.
Same-store sales in 2013 are expected to rise 1.5 to 2.5 percent at Jack in the Box company restaurants, and flat to up 1.0 percent at Qdoba company restaurants.
The company's stock ended Wednesday at $38.35, up 0.34%, on a volume of 335 thousand shares. In after hours, the stock fell 1.12%.
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