Tuesday, fast-food chain Jack in the Box Inc. (JBX) announced financial results for the third quarter, reporting a decline in profit year-over-year on higher expenses, despite higher sales. Continued increase in commodity costs for cheese, dairy, eggs and shortenings negatively impacted the results. The company also issued fourth quarter financial guidance and increased its earnings forecast for fiscal 2008.
The San Diego, California-based restaurant operator and franchiser posted third quarter net income of $29.9 million or $0.51 per share, down from $34.5 million or $0.54 per share reported in the prior-year quarter.
On average, 12 analysts polled by First Call/Thomson Financial expected the company to earn $0.51 per share.
Total revenues for the quarter increased to $709.50 million, from $680.20 million in the same quarter last year. Eleven Wall Street analysts had a consensus revenue estimate of $694.36 million.
During the quarter, Jack in the Box company restaurants same-store sales decreased 0.4% following a 7.4% increase in the year-ago quarter. System same-store sales at Qdoba Mexican Grill increased 0.5% on top of a prior-year increase of 5%.
Earnings from operations declined to $54.92 million from $59.42 million in the prior-year quarter, while total operating costs and expenses for the quarter rose to $654.58 million from $620.79 million in the year-ago quarter.
For the nine-month period, Jack in the Box posted net earnings of $92.41 million, lower than $98.82 million in the year-ago period. However, earnings per share rose to $1.54 per share from $1.44 per share in the prior-year period, due to lower share count. Revenues for the nine-month period rose to $2.31 billion from $2.2 billion in the same period last year.
Looking ahead for the fourth quarter, the company expects approximately flat same-store sales at Jack in the Box company restaurants on top of a 5.2% increase in the year-ago quarter.
For fiscal year 2008, the company now expects earnings in the range of $2.01 to $2.05 per share and flat to 1% increase in same-store sales at Jack in the Box company restaurants. Street expects the company to earn $2.01 per share for the year. Previously, the company projected earnings of $1.98 to 2.08 per share.
JBX closed Tuesday's regular trading session at $23.04, UP $1.12 or 5.11%.
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