Discontinued operations for the third quarter of fiscal 2013 include pre-tax charges related to the Qdoba restaurant closures of approximately $36.7 million, including approximately $22.7 million in non-cash impairment charges and approximately $11.4 million in charges related to future lease obligations, net of reversals for deferred rent and tenant improvement allowances, and other exit costs including employee severance. In addition, the pre-tax loss from operations relating to these restaurants was approximately $2.6 million in the third quarter of fiscal 2013 and $8.8 million in the year-to-date 2013 period, or approximately $0.04 and $0.12 per diluted share, respectively.
Discontinued operations also include charges related to the previously announced outsourcing of the company’s distribution business which was completed in the first quarter of fiscal 2013. As a result of the outsourcing, the company recorded a pre-tax charge of $0.6 million in the third quarter and $6.0 million in the year-to-date 2013 period, which reduced year-to-date diluted net earnings per share by approximately $0.08.
Losses on the sale of company-operated restaurants in the third quarter of fiscal 2013 totaled $1.5 million, or approximately $0.02 per diluted share, compared with a gain from refranchising of $3.7 million, or approximately $0.05 per diluted share, in the prior year quarter. The 2013 amount includes a pre-tax loss of $1.1 million related to the sale of three Qdoba restaurants that was completed in the fourth quarter, as well as a loss relating to 18 Jack in the Box® restaurants that were refranchised during the third quarter.
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 $0.1 million were recorded during the third quarter of 2013 as compared to $11.3 million, or approximately $0.16 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 operations. The company expects to incur additional restructuring charges relating to this review.
|Increase (decrease) in same-store sales:|
|12 Weeks Ended||12 Weeks Ended||40 Weeks Ended||40 Weeks Ended|
|July 7, 2013||July 8, 2012||July 7, 2013||July 8, 2012|
|Jack in the Box ®:|
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