Jack in the Box Inc. Reports Fourth Quarter FY 2012 Earnings; Issues Guidance for FY 2013; Updates Long-term Goals
Jack in the Box Inc. Reports Fourth Quarter FY 2012 Earnings; Issues
Guidance for FY 2013; Updates Long-term Goals
Business Wire
SAN DIEGO -- November 19, 2012
Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing
operations of $17.8 million, or $0.39 per diluted share, for the fourth
quarter ended September 30, 2012, compared with earnings from continuing
operations of $23.2 million, or $0.50 per diluted share, for the fourth
quarter of fiscal 2011.
Fiscal 2012 earnings from continuing operations totaled $63.0 million, or
$1.40 per diluted share, compared with $81.7 million, or $1.63 per diluted
share in fiscal 2011.
Operating earnings per share, a non-GAAP measure which the company defines as
diluted earnings per share from continuing operations on a GAAP basis
excluding restructuring charges and gains from refranchising, were $0.27 per
share in the fourth quarter of fiscal 2012 compared with $0.20 per share in
the prior year quarter. Operating earnings per share for the fourth quarter of
fiscal 2012 includes $2.0 million, or approximately $0.03 per share, of lease
costs associated with previously closed restaurants, which are reflected in
“impairment and other charges, net” in the accompanying consolidated
statements of earnings. For fiscal year 2012, operating earnings per share
were $1.20 compared with $0.85 last year. A reconciliation of non-GAAP
measurements to GAAP results is provided below with additional information
included in the attachment to this release. Figures may not add due to
rounding.
12 Weeks Ended 52 Weeks Ended
September 30, October 2, September 30, October 2,
2012 2011 2012 2011
Diluted earnings per
share from
continuing $ 0.39 $ 0.50 $ 1.40 $ 1.63
operations – GAAP
Plus: Restructuring 0.04 − 0.23 −
charges
Less: Gains from (0.16 ) (0.30 ) (0.44 ) (0.78 )
refranchising
Operating earnings $ 0.27 $ 0.20 $ 1.20 $ 0.85
per share - Non-GAAP
During fiscal 2012, the company engaged in a comprehensive review of its
organization structure, including evaluating opportunities for outsourcing,
restructuring of certain functions and workforce reductions. As a result,
restructuring charges of $2.7 million, or approximately $0.04 per diluted
share, were recorded during the fourth quarter, and $15.5 million, or
approximately $0.23 per diluted share, were recorded during fiscal 2012. These
charges relate primarily to severance costs for positions that were eliminated
or employees who elected to participate in the company’s voluntary early
retirement program. These charges are also included in “impairment and other
charges, net” in the accompanying consolidated statements of earnings, which
increased in the fourth quarter to $8.3 million from $2.5 million a year ago.
Gains from refranchising contributed approximately $0.16 per diluted share for
the fourth quarter of fiscal 2012 as compared with approximately $0.30 per
diluted share in the prior year quarter. For fiscal year 2012, gains from
refranchising contributed approximately $0.44 per diluted share as compared
with approximately $0.78 for fiscal year 2011.
As previously announced, during the fourth quarter of 2012, the company began
outsourcing its distribution business, and the transition was completed in the
first quarter of fiscal 2013. As a result of the outsourcing, the company
recorded after-tax charges totaling $5.3 million in the fourth quarter of
fiscal 2012, which reduced diluted net earnings per share by approximately
$0.12. This charge and the results of operations for the distribution business
are included in discontinued operations in the accompanying consolidated
statements of earnings for all periods presented.
Increase in same-store sales:
12 Weeks 12 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
Sept. 30, Oct. 2, 2011 Sept. 30, Oct. 2,
2012 2012 2011
Jack in the Box^®:
Company 3.1 % 5.8 % 4.6 % 3.1 %
Franchise 3.0 % 2.0 % 3.0 % 1.3 %
System 3.1 % 3.1 % 3.4 % 1.8 %
Qdoba^®:
Company 0.8 % 4.3 % 2.8 % 5.1 %
Franchise 0.0 % 3.3 % 1.9 % 5.4 %
System 0.4 % 3.7 % 2.4 % 5.3 %
Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box
company same-store sales increased 3.1 percent in the fourth quarter, driven
by a combination of traffic growth and an increase in average check. We are
extremely pleased with these results, given the difficult comparison to last
year’s same-store sales and traffic growth of 5.8 percent and 8.5 percent,
respectively. Jack in the Box same-store sales growth for the quarter was
almost double that of the QSR sandwich segment for the comparable period,
according to The NPD Group’s SalesTrack® Weekly for the 12-week time period
ended September 30, 2012. Included in this segment are the top 15 sandwich and
QSR burger chain competitors. We believe the same-store sales increases we’ve
experienced over the last eight quarters demonstrate our ability to continue
to drive sustainable sales and market share growth at the Jack in the Box
brand.
“Qdoba’s same-store sales in the fourth quarter increased 0.8 percent for
company restaurants and 0.4 percent system-wide, slightly below our
expectations. Importantly, company restaurant operating margin at Qdoba
improved to 15.5 percent in the fourth quarter from 13.9 percent in the
year-ago quarter,” Lang said.
Consolidated restaurant operating margin was 15.1 percent of sales in the
fourth quarter of 2012, compared with 13.5 percent of sales in the year-ago
quarter. This was lower than the company’s internal expectations due primarily
to higher utilities and repairs and maintenance costs.
Food and packaging costs in the quarter were 150 basis points lower than prior
year. The decrease resulted from the benefit of price increases as well as a
greater proportion of Qdoba company restaurants which combined to more than
offset commodity inflation. Overall commodity costs were up less than 1
percent in the quarter.
Payroll and employee benefits costs were 40 basis points lower than the
year-ago quarter, reflecting leverage from same-store sales increases, the
benefits of refranchising Jack in the Box restaurants, and the favorable
impact of recent acquisitions of Qdoba franchised restaurants.
Occupancy and other costs increased 30 basis points in the fourth quarter due
primarily to higher utilities and repairs and maintenance costs, higher debit
card fees and higher depreciation expense related to the Jack in the Box
re-image program. These increases were partially offset by leverage from
same-store sales increases, the benefits of refranchising Jack in the Box
restaurants, and the favorable impact of recent acquisitions of Qdoba
franchised restaurants.
SG&A expense for the fourth quarter increased by $0.6 million and was 15.2
percent of revenues as compared to 14.6 percent in the prior year quarter. The
increase in SG&A was attributable primarily to higher incentive compensation
accruals, increased G&A related to Qdoba growth, and higher pension and
pre-opening costs which were partially offset by lower advertising and
overhead costs resulting from the company’s refranchising strategy.
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 quarter of 2012 as compared to a negative impact of $4.5 million in the
fourth quarter of 2011.
Gains on the sale of 42 company-operated Jack in the Box restaurants to
franchisees totaled $10.2 million in the fourth quarter, or approximately
$0.16 per diluted share, compared with $22.2 million, or approximately $0.30
per diluted share in the year-ago quarter from the sale of 106 restaurants.
For fiscal 2012, gains on the sale of 97 company-operated restaurants to
franchisees totaled $29.1 million, or approximately $0.44 per diluted share,
compared with $61.1 million, or approximately $0.78 per diluted share in
fiscal 2011 from the sale of 332 company-operated restaurants. Total proceeds
related to refranchising for the fourth quarter and fiscal 2012 were $19.1
million and $48.3 million, respectively.
The tax rate for fiscal 2012 was 32.7 percent versus 36.3 percent for fiscal
2011. The tax rate for fiscal 2012 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.
The company repurchased approximately 883,000 shares of its common stock in
the fourth quarter of 2012 at an average price of $26.15 per share for an
aggregate cost of $23.1 million. In October 2012, the company repurchased
approximately 985,000 shares of its common stock at an average price of $27.26
per share for an aggregate cost of $26.9 million, leaving $50.0 million
remaining under a $100 million stock-buyback program authorized by the
company’s board of directors in November 2011 that expires in November 2013.
In November 2012, the company’s board of directors authorized an additional
$100 million stock-buyback program that expires in November 2014.
Earlier this month, the company announced the completion of a new five-year
$600 million senior credit facility, comprised of a $400 million revolving
credit facility and a $200 million term loan. Under the terms of the new
agreement, the interest rate has been lowered by 50 basis points and can range
from LIBOR plus 175 to 225 basis points with no floor, with the current spread
at 200 basis points. The agreement also provides for up to $500 million for
stock repurchases and the potential payment of cash dividends.
Restaurant openings
Seven new Jack in the Box restaurants opened in the fourth quarter of fiscal
2012, including two franchised locations, compared with 10 new restaurants
opened system-wide during the same quarter last year, of which six were
franchised.
In the fourth quarter, 24 Qdoba restaurants opened, including 12 franchised
locations, versus 20 new restaurants in the year-ago quarter, of which 12 were
franchised.
At September 30, 2012, the company’s system total comprised 2,250 Jack in the
Box restaurants, including 1,703 franchised locations, and 627 Qdoba
restaurants, including 311 franchised locations.
Guidance
The following guidance and underlying assumptions reflect the company’s
current expectations for the first quarter ending January 20, 2013, and the
fiscal year ending September 29, 2013. Fiscal 2013 is a 52-week year, with 16
weeks in the first quarter, and 12 weeks in each of the second, third and
fourth quarters.
First quarter fiscal year 2013 guidance
* Same-store sales are expected to increase approximately 1 to 2 percent at
Jack in the Box company restaurants versus a 5.3 percent increase in the
year-ago quarter.
* Same-store sales are expected to increase approximately 1 to 2 percent at
Qdoba company restaurants versus a 3.5 percent increase in the year-ago
quarter.
Fiscal year 2013 guidance
* Same-store sales are expected to increase approximately 2 to 3 percent at
Jack in the Box company restaurants.
* Same-store sales are expected to increase approximately 2 to 3 percent at
Qdoba company restaurants.
* Overall commodity costs are expected to increase by approximately 2 to 3
percent for the full year.
* Restaurant operating margin for the full year is expected to range from
approximately 15.5 to 16.0 percent, depending on same-store sales and
commodity inflation.
* SG&A as a percentage of revenue is expected to be in the mid-14 percent
range as compared to 14.7% in fiscal 2012. G&A as a percentage of
system-wide sales is expected to decline to approximately 4.3% in fiscal
2013 from 4.6% in fiscal 2012.
* Impairment and other charges as a percentage of revenue are expected to be
approximately 50 to 70 basis points, excluding restructuring charges.
* The company will no longer provide guidance with respect to refranchising
gains or proceeds.
* 20 to 25 new Jack in the Box restaurants are expected to open, including
approximately 10 company locations.
* 70 to 85 new Qdoba restaurants are expected to open, of which
approximately 40 to 45 are expected to be company locations.
* Capital expenditures are expected to be $95 to $105 million.
* The tax rate is expected to be approximately 37 to 38 percent.
* Operating earnings per share, which the company defines as diluted
earnings per share from continuing operations on a GAAP basis excluding
restructuring charges and gains from refranchising, are expected to range
from $1.45 to $1.60 in fiscal 2013 as compared to operating earnings per
share of $1.20 in fiscal 2012.
* Diluted earnings per share includes approximately $0.04 of incentive
payments to Jack in the Box franchisees in fiscal 2013 to complete the
installation of new signage as compared to $0.11 in fiscal 2012 to
complete the re-image program.
Long-term goals (2014 to 2016)
The company today provided an update to the long-term goals that were
introduced in February 2012. The company expects:
* Same-store sales growth of 2 to 3 percent annually at Jack in the Box
company restaurants and 3 to 4 percent annually at Qdoba company
restaurants.
* Restaurant operating margin of 16 to 16.5 percent beginning in fiscal
2014.
* G&A of 3.5 to 4.0 percent of consolidated system-wide sales beginning in
fiscal 2014.
* Jack in the Box system new unit growth of approximately 2 percent per
year.
* Qdoba company new unit growth of approximately 15 percent annualized and
franchise unit growth of 30 to 40 restaurants per year.
* Operating earnings per share of approximately $2.00 beginning in fiscal
2014.
Conference call
The company will host a conference call for financial analysts and investors
on Tuesday, November 20, 2012, beginning at 8:30 a.m. PT (11:30 a.m. ET). The
conference call will be broadcast live over the Internet via the Jack in the
Box website. To access the live call through the Internet, log onto the
Investors section of the Jack in the Box Inc. website at
http://investors.jackinthebox.com at least 15 minutes prior to the event in
order to download and install any necessary audio software. A replay of the
call will be available through the Jack in the Box Inc. corporate website for
21 days, beginning at approximately 11:30 a.m. PT on November 20.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant
company that operates and franchises Jack in the Box^® restaurants, one of the
nation’s largest hamburger chains, with more than 2,200 restaurants in 21
states. Additionally, through a wholly owned subsidiary, the company operates
and franchises Qdoba Mexican Grill^®, a leader in fast-casual dining, with
more than 600 restaurants in 42 states and the District of Columbia. For more
information on Jack in the Box and Qdoba, including franchising opportunities,
visit www.jackinthebox.com or www.qdoba.com.
Safe harbor statement
This press release contains forward-looking statements within the meaning of
the federal securities laws. Such statements are subject to substantial risks
and uncertainties. A variety of factors could cause the company’s actual
results to differ materially from those expressed in the forward-looking
statements, including the following: the success of new products and marketing
initiatives; the impact of competition, unemployment, trends in consumer
spending patterns, commodity costs and the timing of sales of Jack in the Box
restaurants to franchisees; the company’s ability to achieve and manage its
planned expansion, such as the availability of a sufficient number of suitable
new restaurant sites, the performance of new restaurants, and risks relating
to expansion into new markets; and stock market volatility. These and other
factors are discussed in the company’s annual report on Form 10-K and its
periodic reports on Form 10-Q filed with the Securities and Exchange
Commission which are available online at www.jackinthebox.com or in hard copy
upon request. The company undertakes no obligation to update or revise any
forward-looking statement, whether as the result of new information or
otherwise.
JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)
Operating earnings per share, a non-GAAP measure, is defined by the company as
diluted earnings per share from continuing operations on a GAAP basis
excluding restructuring charges and gains from refranchising. Management
believes this non-GAAP financial measure provides important supplemental
information to assist investors in analyzing the performance of the company’s
core business. In addition, the company uses operating earnings per share in
establishing performance goals for purposes of executive compensation. The
company encourages investors to rely upon its GAAP numbers, but includes this
non-GAAP financial measure as a supplemental metric to assist investors. This
non-GAAP financial measure should not be considered as a substitute for, or
superior to, financial measures calculated in accordance with GAAP. In
addition, this non-GAAP financial measure used by the company may be
calculated differently from, and therefore may not be comparable to, similarly
titled measures used by other companies.
Below is a reconciliation of non-GAAP operating earnings per share to the most
directly comparable GAAP measure, diluted earnings per share from continuing
operations. Figures may not add due to rounding.
12 Weeks Ended 52 Weeks Ended
September 30, October 2, September 30, October 2,
2012 2011 2012 2011
Diluted earnings per
share from
continuing $ 0.39 $ 0.50 $ 1.40 $ 1.63
operations – GAAP
Plus: Restructuring 0.04 − 0.23 −
charges
Less: Gains from (0.16 ) (0.30 ) (0.44 ) (0.78 )
refranchising
Operating earnings $ 0.27 $ 0.20 $ 1.20 $ 0.85
per share - Non-GAAP
JACK IN THE BOX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
Quarter Fiscal Year
September October 2, September 30, October 2,
30,
2012 2011 2012 2011
Revenues:
Company $ 278,933 $ 296,088 $ 1,219,214 $ 1,380,273
restaurant sales
Franchise 78,707 70,872 325,812 282,066
revenues
357,640 366,960 1,545,026 1,662,339
Operating costs
and expenses,
net:
Company
restaurant
costs:
Food and 90,840 101,064 400,012 460,790
packaging
Payroll and
employee 79,266 85,226 354,141 414,463
benefits
Occupancy and 66,765 69,864 281,516 329,766
other
Total company 236,871 256,154 1,035,669 1,205,019
restaurant costs
Franchise costs 39,619 34,879 166,078 136,148
Selling, general
and 54,223 53,632 227,003 224,653
administrative
expenses
Impairment and
other charges, 8,326 2,477 32,932 12,583
net
Gains on the
sale of (10,212 ) (22,185 ) (29,145 ) (61,125 )
company-operated
restaurants
328,827 324,957 1,432,537 1,517,278
Earnings from 28,813 42,003 112,489 145,061
operations
Interest 3,912 4,283 18,874 16,855
expense, net
Earnings from
continuing
operations and 24,901 37,720 93,615 128,206
before income
taxes
Income taxes 7,103 14,525 30,643 46,475
Earnings from
continuing 17,798 23,195 62,972 81,731
operations
Losses from
discontinued (5,321 ) (543 ) (5,321 ) (1,131 )
operations
Net earnings $ 12,477 $ 22,652 $ 57,651 $ 80,600
Net earnings per
share - basic:
Earnings from
continuing $ 0.40 $ 0.51 $ 1.43 $ 1.66
operations
Losses from
discontinued (0.12 ) (0.01 ) (0.12 ) (0.02 )
operations
Net earnings per $ 0.28 $ 0.50 $ 1.31 $ 1.63
share
Net earnings per
share - diluted:
Earnings from
continuing $ 0.39 $ 0.50 $ 1.40 $ 1.63
operations
Losses from
discontinued (0.12 ) (0.01 ) (0.12 ) (0.02 )
operations
Net earnings per $ 0.27 $ 0.49 $ 1.28 $ 1.61
share
Weighted-average
shares
outstanding:
Basic 44,069 45,524 43,999 49,302
Diluted 45,411 46,262 44,948 50,085
JACK IN THE BOX INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
September 30, October 2,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 8,469 $ 11,424
Accounts and other receivables, net 78,798 86,213
Inventories 7,752 7,529
Prepaid expenses 32,821 18,737
Deferred income taxes 26,932 45,520
Assets held for sale and leaseback 45,443 51,793
Assets of discontinued operations held 30,591 35,443
for sale
Other current assets 375 1,793
Total current assets 231,181 258,452
Property and equipment, at cost:
Land 109,295 105,314
Buildings 1,054,967 1,023,858
Restaurant and other equipment 328,031 337,708
Construction in progress 37,357 44,660
1,529,650 1,511,540
Less accumulated depreciation and (708,858 ) (660,155 )
amortization
Property and equipment, net 820,792 851,385
Intangible assets, net 17,206 17,495
Goodwill 140,622 105,872
Other assets, net 253,924 199,118
$ 1,463,725 $ 1,432,322
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt $ 15,952 $ 21,148
Accounts payable 94,713 94,348
Accrued liabilities 164,637 167,487
Total current liabilities 275,302 282,983
Long-term debt, net of current 405,276 447,350
maturities
Other long-term liabilities 371,202 290,723
Deferred income taxes - 5,310
Stockholders’ equity:
Preferred stock $0.01 par value,
15,000,000 shares authorized, none - -
issued
Common stock $0.01 par value,
175,000,000 shares authorized, 758 750
75,827,894 and 74,992,487 issued,
respectively
Capital in excess of par value 221,100 202,684
Retained earnings 1,120,671 1,063,020
Accumulated other comprehensive loss (136,013 ) (95,940 )
Treasury stock, at cost, 31,955,606 and (794,571 ) (764,558 )
30,746,099 shares, respectively
Total stockholders’ equity 411,945 405,956
$ 1,463,725 $ 1,432,322
JACK IN THE BOX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Fiscal Year
2012 2011
Cash flows from operating activities:
Net earnings $ 57,651 $ 80,600
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 97,958 96,147
Deferred finance cost amortization 2,695 2,554
Deferred income taxes (6,615 ) (12,832 )
Share-based compensation expense 6,883 8,062
Pension and postretirement expense 33,526 23,845
Losses (gains) on cash surrender value of (12,137 ) 1,094
company-owned life insurance
Gains on the sale of company-operated (29,145 ) (61,125 )
restaurants
Gains on the acquisition of - (426 )
franchise-operated restaurants
Losses on the disposition of property and 6,281 7,650
equipment
Impairment charges and other 9,403 1,367
Changes in assets and liabilities,
excluding acquisitions and dispositions:
Accounts and other receivables 3,497 (26,116 )
Inventories 4,334 (1,540 )
Prepaid expenses and other current assets (12,849 ) 19,163
Accounts payable (3,264 ) 1,498
Accrued liabilities 247 2,446
Pension and postretirement contributions (20,318 ) (4,790 )
Other (1,417 ) (13,337 )
Cash flows provided by operating 136,730 124,260
activities
Cash flows from investing activities:
Purchases of property and equipment (80,200 ) (129,312 )
Purchases of assets intended for sale and (35,927 ) (31,798 )
leaseback
Proceeds from sale and leaseback of assets 27,844 28,536
Proceeds from the sale of company-operated 47,115 119,275
restaurants
Collections on notes receivable 12,230 20,848
Disbursements for loans to franchisees (3,977 ) (14,473 )
Acquisition of franchise-operated (48,945 ) (31,077 )
restaurants
Other 344 2,199
Cash flows used in investing activities (81,516 ) (35,802 )
Cash flows from financing activities:
Borrowings on revolving credit facilities 576,380 721,160
Repayments of borrowings on revolving (602,540 ) (605,000 )
credit facilities
Principal repayments on debt (21,110 ) (13,760 )
Debt issuance costs (741 ) (989 )
Proceeds from issuance of common stock 10,167 5,530
Repurchases of common stock (30,013 ) (193,099 )
Excess tax benefits from share-based 1,115 1,290
compensation arrangements
Change in book overdraft 8,573 (2,773 )
Cash flows used in financing activities (58,169 ) (87,641 )
Net increase (decrease) in cash and cash (2,955 ) 817
equivalents
Cash and cash equivalents at beginning of 11,424 10,607
year
Cash and cash equivalents at end of year $ 8,469 $ 11,424
JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
The following table presents certain income and expense items included in
our consolidated statements of earnings as a percentage of total revenues,
unless otherwise indicated. Percentages may not add due to rounding.
CONSOLIDATED STATEMENTS OF EARNINGS DATA
Quarter Fiscal Year
September October September October
30, 2, 30, 2,
2012 2011 2012 2011
Revenues:
Company restaurant 78.0 % 80.7 % 78.9 % 83.0 %
sales
Franchise revenues 22.0 % 19.3 % 21.1 % 17.0 %
Total revenues 100.0 % 100.0 % 100.0 % 100.0 %
Operating costs and
expenses, net:
Company restaurant
costs:
Food and packaging 32.6 % 34.1 % 32.8 % 33.4 %
(1)
Payroll and
employee benefits 28.4 % 28.8 % 29.0 % 30.0 %
(1)
Occupancy and other 23.9 % 23.6 % 23.1 % 23.9 %
(1)
Total company
restaurant costs 84.9 % 86.5 % 84.9 % 87.3 %
(1)
Franchise costs (1) 50.3 % 49.2 % 51.0 % 48.3 %
Selling, general
and administrative 15.2 % 14.6 % 14.7 % 13.5 %
expenses
Impairment and 2.3 % 0.7 % 2.1 % 0.8 %
other charges, net
Gains on the sale
of company-operated (2.9) % (6.0) % (1.9) % (3.7) %
restaurants
Earnings from 8.1 % 11.4 % 7.3 % 8.7 %
operations
Income tax rate (2) 28.5 % 38.5 % 32.7 % 36.3 %
(1) As a percentage of the related sales and/or revenues
(2) As a percentage of earnings from continuing operations and before income
taxes.
The following table presents Jack in the Box and Qdoba company restaurant
sales, costs and costs as a percentage of the related sales. Percentages may
not add due to rounding.
SUPPLEMENTAL COMPANY-OPERATED RESTAURANTS STATEMENTS OF EARNINGS DATA
(Dollars in thousands)
Quarter Fiscal Year
September 30, 2012 October 2, 2011 September 30, 2012 October 2, 2011
Jack in
the Box:
Company
restaurant $ 207,130 $ 243,028 $ 943,990 $ 1,181,961
sales
Company
restaurant
costs:
Food and 69,734 33.7% 85,178 35.0% 319,415 33.8% 403,209 34.1%
packaging
Payroll
and 59,703 28.8% 70,732 29.1% 278,464 29.5% 358,917 30.4%
employee
benefits
Occupancy 46,793 22.6% 54,577 22.5% 205,134 21.7% 271,432 23.0%
and other
Total
company $ 176,230 85.1% $ 210,487 86.6% $ 803,013 85.1% $ 1,033,558 87.4%
restaurant
costs
Qdoba:
Company
restaurant $ 71,803 $ 53,060 $ 275,224 $ 198,312
sales
Company
restaurant
costs:
Food and 21,106 29.4% 15,886 29.9% 80,597 29.3% 57,581 29.0%
packaging
Payroll
and 19,563 27.2% 14,494 27.3% 75,677 27.5% 55,546 28.0%
employee
benefits
Occupancy 19,972 27.8% 15,287 28.8% 76,382 27.8% 58,334 29.4%
and other
Total
company $ 60,641 84.5% $ 45,667 86.1% $ 232,656 84.5% $ 171,461 86.5%
restaurant
costs
JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
The following table summarizes the changes in the number and mix of Jack in the Box and
Qdoba company and franchise restaurants in each fiscal year:
September 30, 2012 October 2, 2011
Company Franchise Total Company Franchise Total
Jack in the
Box:
Beginning of 629 1,592 2,221 956 1,250 2,206
year
New 19 18 37 15 16 31
Refranchised (97 ) 97 - (332 ) 332 -
Closed (4 ) (4 ) (8 ) (10 ) (6 ) (16 )
End of year 547 1,703 2,250 629 1,592 2,221
% of Jack in
the Box 24 % 76 % 100 % 28 % 72 % 100 %
system
% of
consolidated 63 % 85 % 78 % 72 % 82 % 79 %
system
Qdoba:
Beginning of 245 338 583 188 337 525
year
New 26 32 58 25 42 67
Acquired from 46 (46 ) - 32 (32 ) -
franchisees
Closed (1 ) (13 ) (14 ) - (9 ) (9 )
End of year 316 311 627 245 338 583
% of Qdoba 50 % 50 % 100 % 42 % 58 % 100 %
system
% of
consolidated 37 % 15 % 22 % 28 % 18 % 21 %
system
Consolidated:
Total system 863 2,014 2,877 874 1,930 2,804
% of
consolidated 30 % 70 % 100 % 31 % 69 % 100 %
system
Contact:
Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, (858) 571-2407
or
Media Contact:
Brian Luscomb, (858) 571-2291
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