This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jack In The Box Inc. Reports Third Quarter FY 2013 Earnings; Updates Guidance For FY 2013

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 ®:
Company 1.2% 3.4% 1.4% 4.9%
Franchise (0.3%) 2.6% 0.6% 3.0%
System 0.1% 2.8% 0.8% 3.5%
Qdoba ®:
Company 0.5% 3.8% 0.3% 3.9%
Franchise 2.1% 0.9% 0.6% 2.5%
System 1.3% 2.2% 0.4% 3.1%

Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 1.2 percent for the quarter exceeding that of the QSR sandwich segment by 1.0 percentage point for the comparable period, with system-wide same-store sales growth just slightly below the segment, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended July 7th, 2013. Included in this segment are 15 of the top QSR sandwich and burger chain competitors.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,957.55 -25.04 -0.15%
S&P 500 1,976.58 -2.33 -0.12%
NASDAQ 4,454.7750 +9.8660 0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs