The fast-food chain reported revenue growth during the quarter of about $8 million to $369.4 million, partially offset by a $2.2 million charge for some organizational restructuring to reduce costs.
Chairman and CEO Lenny Comma said that despite the gains, the second- quarter performance “was below our expectations.”
“After a sluggish start to the quarter, which we believe was attributable to delayed tax refunds and record rainfall in California, Jack in the Box system same-store sales improved to positive territory as these transitory issues passed and we pivoted our advertising towards value messages,” Comma said.
“However, same-store sales at Qdoba company restaurants worsened in the latter two months of the quarter, as we lapped more aggressive discounting in last year’s second quarter,” he said.
“While margins at Qdoba were still disappointing, they improved to over 16 percent in the final month of the quarter as we were able to manage labor and food costs more effectively than in the first quarter, despite the larger decline in same-store sales.”
Comma said Jack in the Box executives are encouraged that Qdoba company same-store sales have improved so far in the third quarter.
For the first half of the company’s fiscal year, net income was $69 million, or $2.16 per diluted share, compared to $61.9 million, or $1.76 per diluted share, in the first six months of last year.
Revenue was up about $25 million to $857.3 during the period.
— City News Service
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