San Diego-based Jack in the Box Inc. on Wednesday reported first-quarter net earnings of $33.2 million, or 92 cents a share, compared with $35.8 million, or 91 cents a share, in the same period last year.
Revenues in the first quarter, which ended Jan. 17, rose slightly to $470.8 million.
“Our first-quarter results were disappointing as operating earnings per share were below our expectations,” said Chairman and CEO Lenny Comma.
Comma said sales lagged at Jack in the Box restaurants late in the quarter when competitors began promoting “aggressive value offers.”
Breakfast and lunch sales weakened after McDonald’s introduced its all-day breakfast offering, he said.
Jack in the Box responded by upgrading its core menu, according to Comma.
Sales at the company’s Qdoba brand grew, but higher advertising and pre-store opening costs bit into revenues, he said.
— City News Service