San Diego-based Jack in the Box Wednesday reported third quarter net income of nearly $30.2 million, or 91 cents per share, compared to $26.8 million, or 71 cents per share, in the same period last year, despite a slowdown in the growth of same-store sales.
Jack in the Box reported $368.9 million in revenue during the quarter which ended July 3, about $9 million more than the same period last year.
However, same store sales growth plunged from 7.3 percent in the third quarter last year at Jack in the Box restaurants to 1.1 percent in the same period this year. Sales actually declined 0.2 percent at company-owned outlets – – only to be saved by an increase of 1.5 percent at franchised eateries.
The slowdown was similar for the company’s Qdoba brand, with same store sales falling from 7.7 percent in the 2015 third quarter to 0.6 percent this year.
Jack in the Box Chairman and CEO Lenny Comma said same-store sales improved as the third quarter went on and closed a gap with the rest of the industry.
The company said it took a restructuring charge of $7.7 million, or about 15 cents per share, during the quarter as part of a plan to reduce costs. The plan includes workforce reductions, refranchising, relocating the headquarters of the Qdoba brand from Colorado to San Diego and combining the computer technology of the two chains.
For the first nine months of this year, Jack in the Box reported $92 million in net income, or $2.67 per share, compared to nearly $85.7 million, or $2.22 per share, in 2015.
The slower pace of same-store sales growth was also reflected in the first three quarters combined, falling from 6.6 percent last year to 0.9 percent this year at Jack in the Box, and 10.2 percent to 1.6 percent at Qdoba.
–City News Service
