This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Fourth Quarter FY 2013 Earnings; Issues Guidance For FY 2014; Updates Long-term Goals

Stocks in this article: JACK

“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.

SG&A expense for the fourth quarter decreased by $4.3 million and was 14.6 percent of revenues as compared to 15.4 percent in the prior year quarter. The benefit of the company’s restructuring activities, lower overhead costs resulting from the Jack in the Box refranchising strategy, and decreases in pre-opening costs and incentive and share-based compensation were partially offset by higher pension costs and a legal judgment that negatively impacted SG&A by approximately $1.0 million in the fourth quarter of 2013. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $2.0 million in the fourth quarters of both 2013 and 2012.

The tax rate for the fourth quarter of 2013 was 28.0 percent versus 29.4 percent for the fourth quarter of 2012, and 32.8 percent in fiscal 2013 as compared to 33.2 percent in fiscal 2012. The tax rate for fiscal 2013 was lower than the company’s most recent guidance due primarily to the market performance of insurance investment products used to fund certain non-qualified retirement plans. Changes in the cash value of the insurance products are not deductible or taxable.

4 of 8

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!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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