The company currently estimates it will incur pre-tax charges during fiscal 2013 of approximately $40 million, including an estimated $28 million in non-cash impairment charges and approximately $12 million in charges related to cash lease obligations and employee severance costs. The company will update the estimated pre-tax charges, if necessary, related to the restaurant closures when it reports its third-quarter operating results in August.
The restaurant closures will be discussed when Jack in the Box Inc. management presents at two upcoming investment conferences: Jefferies Global Consumer Conference on June 18 and Oppenheimer Annual Consumer Conference on June 26. Live webcasts of both presentations can be accessed via the Jack in the Box Inc. website at http://investors.jackinthebox.com.
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 45 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, including statements regarding the plan to close 67 underperforming restaurants, including the estimated timing and costs, the impact on Qdoba’s operations, and the future benefits to the company’s results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance or achievements to be materially different than expressed or implied by these forward-looking statements. In particular, the company is unable to predict the ultimate costs associated with the closings, the timing of payments made and received, the results of final negotiations with landlords, the impact of the closings on ongoing operations, any tax benefits from the closings, and the future benefits to the company’s earnings, average unit volumes, restaurant operating margins, cash flow and return on invested capital. For other factors to consider, see the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and its quarterly reports on Form 10-Q. Except as may be required by law, the company undertakes no obligation to update publicly or revise any forward-looking statements to reflect any future events or circumstances.