“We refranchised 78 Jack in the Box restaurants in fiscal 2013, including 56 in the fourth quarter. Our system is now approximately 79 percent franchised, and we’re near our goal of franchise ownership in the 80 to 85 percent range.”Consolidated restaurant operating margin decreased by 10 basis points to 16.1 percent of sales in the fourth quarter of 2013, compared with 16.2 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box restaurants increased 80 basis points to 15.7 percent of sales. The improvement was due primarily to the benefit of refranchising, which was partially offset by higher food and packaging costs and sales deleverage as compared to last year. The increase in food and packaging costs as a percentage of sales resulted from commodity inflation of approximately 4.6 percent, which was partially offset by the benefit of price increases. Restaurant operating margin for Qdoba restaurants decreased 310 basis points to 17.2 percent of sales, due primarily to increased rent and staffing levels related to new restaurant openings, higher credit card fees, product mix changes, and commodity inflation of approximately 1.5 percent.
Jack In The Box Inc. Reports Fourth Quarter FY 2013 Earnings; Issues Guidance For FY 2014; Updates Long-term Goals
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