Jack In The Box Inc. Reports Second Quarter FY 2012 Earnings; Updates Guidance For FY 2012

Jack in the Box Inc. (NASDAQ: JACK) today reported net earnings of $21.6 million, or $0.48 per diluted share, for the second quarter ended April 15, 2012, compared with net earnings of $6.8 million, or $0.13 per diluted share, for the second quarter of fiscal 2011.

Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share on a GAAP basis less gains from refranchising, were $0.27 per diluted share compared with $0.12 per diluted share in the prior year quarter. A reconciliation of non-GAAP measurements to GAAP results is attached to this release. Included in operating earnings per share were re-image incentive payments of $0.8 million, or approximately $0.01 per share in the second quarter of 2012 as compared to $1.4 million, or approximately $0.02 per share in the prior year quarter.

During fiscal 2012, the company has been engaged in a comprehensive review of its overhead structure, including evaluating opportunities for outsourcing, restructuring of certain functions and workforce reductions. As a result, restructuring charges of $1.5 million, or approximately $0.02 per share, were recorded during the quarter which relate primarily to severance costs for positions that were eliminated. These charges are included in “impairment and other charges, net” in the accompanying consolidated statement of earnings. The company expects to incur additional restructuring charges during fiscal 2012 relating to this review.

Gains from refranchising contributed approximately $0.21 per diluted share for the quarter as compared with approximately $0.01 per diluted share in the prior year quarter.

Increase (decrease) in same-store sales:

		12 Weeks Ended		12 Weeks Ended		28 Weeks Ended		28 Weeks Ended
		April 15, 2012		April 17, 2011		April 15, 2012		April 17, 2011
Jack in the Box ®:
Company		5.6%		0.8%		5.5%		1.2%
Franchise		3.6%		(0.3%)		3.1%		0.4%
System		4.2%		0.1%		3.8%		0.7%
Qdoba ®:
Company		3.8%		5.1%		3.7%		5.5%
Franchise		2.2%		6.4%		3.2%		6.5%
System		3.0%		6.0%		3.4%		6.2%

Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 5.6 percent in the second quarter, driven by a combination of traffic growth and an increase in average check. We believe these results have been largely driven by the investments we have made to enhance the entire guest experience at the Jack in the Box brand, including the substantial completion of our system-wide re-image program in January.

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