Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from
continuing operations of $30.8 million, or $0.93 per diluted share,
for the third quarter ended July 3, 2016, compared with $28.4
million, or $0.75 per diluted share, for the third quarter of
fiscal 2015.
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 or losses from refranchising, were $1.07 in the third quarter
of fiscal 2016 compared with $0.76 in the prior year quarter.
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 40 Weeks Ended July 3,2016 July
5,2015 July 3,2016 July 5,2015 Diluted earnings per share
fromcontinuing operations – GAAP $ 0.93 $ 0.75 $ 2.72 $ 2.30
Restructuring charges 0.15 — 0.14 — (Gains) losses from
refranchising (0.01 ) — (0.02 ) 0.07 Operating earnings per
share – Non-GAAP $ 1.07 $ 0.76 $ 2.84 $ 2.37
During fiscal 2016, the company announced plans to reduce
general and administrative costs. A comprehensive review of its
organizational structure identified cost savings from workforce
reductions, relocation and consolidation of the Qdoba corporate
support center, refranchising initiatives, and information
technology synergies across both brands. As a result, restructuring
charges of $7.7 million, or approximately $0.15 per diluted share,
were recorded during the third quarter. Charges consist primarily
of employee severance pay and facility closing costs. These charges
are included in “impairment and other charges, net” in the
accompanying consolidated statements of earnings, which increased
in the third quarter to $10.5 million from $3.8 million a year
ago.
Lenny Comma, chairman and chief executive officer, said,
“Operating earnings per share for the third quarter exceeded our
expectations, and resulted primarily from healthy margins combined
with proceeds from a legal settlement, mark-to-market adjustments
and a lower tax rate. We were particularly pleased that Jack in the
Box® system same-store sales closed the gap as compared to the
industry, with results steadily improving throughout the quarter.
We also began implementing our G&A cost reduction plans, and
are happy with the progress that has been made thus far.”
Increase (decrease) in same-store sales:
12 Weeks Ended 40 Weeks Ended July 3,2016
July 5,2015 July 3,2016 July 5,2015 Jack in
the Box: Company (0.2 )% 5.5 % (0.2 )% 5.4 % Franchise 1.5 % 7.9 %
1.3 % 7.0 % System 1.1 % 7.3 % 0.9 % 6.6 % Qdoba®: Company 1.0 %
6.6 % 1.8 % 9.1 % Franchise 0.1 % 9.0 % 1.3 % 11.4 % System 0.6 %
7.7 % 1.6 % 10.2 %
Jack in the Box system same-store sales increased 1.1 percent
for the quarter and lagged the QSR sandwich segment by 0.1
percentage points for the comparable period, according to The NPD
Group’s SalesTrack® Weekly for the 12-week time period ended
July 3, 2016. Included in this segment are 16 of the top QSR
sandwich and burger chains in the country. Company same-store sales
decreased 0.2 percent, with average check up 3.5 percent.
Qdoba same-store sales increased 0.6 percent system-wide and 1.0
percent for company restaurants in the third quarter. Company
same-store sales reflected a 0.4 percent increase in transactions
as well as growth in catering sales.
Consolidated restaurant operating margin increased by 10 basis
points to 21.9 percent of sales in the third quarter of 2016,
compared with 21.8 percent of sales in the year-ago quarter.
Restaurant operating margin for Jack in the Box company restaurants
increased 50 basis points to 22.5 percent of sales. The increase
was due primarily to favorable food and packaging costs, which were
partially offset by higher costs related to equipment and exterior
upgrades and minimum wage increases in California that went into
effect in January 2016. The decrease in food and packaging costs as
a percentage of sales resulted from the benefit of commodity
deflation of approximately 2.7 percent in the quarter, favorable
product mix changes and menu price increases. Restaurant operating
margin for Qdoba company restaurants decreased 80 basis points to
20.6 percent of sales. The decrease was due primarily to costs
associated with a greater number of new restaurant openings,
increased promotional activity, and higher costs related to
equipment upgrades which more than offset the sales growth and
benefits from commodity deflation of approximately 3.8 percent in
the quarter.
Franchise margin as a percentage of total franchise revenues
improved to 52.8 percent in the third quarter from 52.1 percent in
the prior year quarter. The improvement was due primarily to higher
royalty revenue for both brands and higher rental income from Jack
in the Box franchised restaurants resulting from increases in
franchise average unit volumes.
SG&A expense for the third quarter decreased by $8.2 million
and was 11.6 percent of revenues as compared to 14.2 percent in the
prior year quarter. Key items contributing to the decrease were a
$2.5 million legal settlement related to an oil spill in the Gulf
of Mexico in 2010, a $1.3 million reduction in incentive
compensation, and a $1.2 million decrease in pension and
postretirement benefits related to the sunsetting of the company's
qualified pension plan on December 31, 2015. In addition,
mark-to-market adjustments on investments supporting the company’s
non-qualified retirement plans positively impacted SG&A by $1.3
million in the third quarter of 2016 as compared to a negative
impact of $1.0 million in the third quarter of 2015, resulting in a
year-over-year decrease in SG&A of $2.3 million. These
decreases were partially offset by a $1.3 million increase in
insurance costs due to unfavorable workers' compensation and
general liability claim developments in the year.
Interest expense, net, increased by $3.1 million in the third
quarter due to increased leverage and a higher effective interest
rate for 2016.
The tax rate for the third quarter of 2016 was 36.0 percent
versus 38.2 percent for the third quarter of 2015. The lower tax
rate in the third quarter of 2016 was due primarily to favorable
adjustments on investments supporting the company's non-qualified
retirement plans and the conclusion of a state audit during the
prior year quarter.
Capital Allocation
Due to the significant announcements made at the company's
investor meeting in late May which was more than halfway through
the quarter, the company did not repurchase any shares of its
common stock in the third quarter of 2016. Year-to-date through the
third quarter, the company has repurchased approximately 3,451,000
shares at an average price of $72.44, for an aggregate cost of
$250.0 million. The company currently has $150.0 million remaining
under stock-buyback programs authorized by its Board of Directors
in February and May 2016 that expire in November 2017.
The company also announced today that on July 28, 2016, its
Board of Directors declared a quarterly cash dividend of $0.30 per
share on the company’s common stock. The dividend is payable on
August 29, 2016, to shareholders of record at the close of business
on August 16, 2016.
Guidance
The following guidance and underlying assumptions reflect the
company’s current expectations for the fourth quarter and fiscal
year ending October 2, 2016. Fiscal 2016 is a 53-week year,
with 16 weeks in the first quarter, 12 weeks in each of the second
and third quarters, and 13 weeks in the fourth quarter.
Fourth quarter fiscal year 2016
guidance
- Same-store sales increase of
approximately 1.0 to 2.0 percent at Jack in the Box company
restaurants versus a 4.1 percent increase in the year-ago
quarter.
- Same-store sales increase of
approximately 1.0 to 2.0 percent at Qdoba company restaurants
versus a 6.1 percent increase in the year-ago quarter.
Fiscal year 2016
guidance
- Same-store sales of approximately flat
to up 0.5 percent at Jack in the Box company restaurants.
- Same-store sales increase of
approximately 1.5 to 2.0 percent at Qdoba company restaurants.
- Commodity deflation of approximately 2
to 3 percent for Jack in the Box and approximately 5 percent
for Qdoba.
- Consolidated restaurant operating
margin of approximately 20.0 to 20.5 percent.
- SG&A as a percentage of revenue of
approximately 13.0 to 13.5 percent as compared to 14.4 percent in
fiscal 2015.
- Impairment and other charges as a
percentage of revenue of approximately 80 basis points, excluding
restructuring charges.
- Approximately 20 new Jack in the Box
restaurants opening system-wide, the majority of which will be
franchise locations.
- Approximately 50 to 60 new Qdoba
restaurants, of which approximately 35 are expected to be company
locations.
- Capital expenditures of $100 million to
$110 million.
- Tax rate of approximately 37
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 or losses from refranchising, ranging from $3.65 to $3.75 in
fiscal 2016 as compared to operating earnings per share of $3.00 in
fiscal 2015. The estimated benefit of the 53rd week in fiscal 2016
is approximately $0.08 per diluted share.
Conference call
The company will host a conference call for financial analysts
and investors on Thursday, August 4, 2016, 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 Inc. corporate 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 August 4.
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 and Guam. Additionally,
through a wholly owned subsidiary, the company operates and
franchises Qdoba Mexican Eats®, a leader in fast-casual dining,
with more than 600 restaurants in 47 states, the District of
Columbia and Canada. 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 and commodity costs; the company's
ability to reduce G&A the company's ability to execute its
refranchising strategy; the company’s ability to achieve and manage
its planned growth, which is affected by the availability of a
sufficient number of suitable new restaurant sites, the performance
of new restaurants, and risks relating to expansion into new
markets; litigation risks; food safety incidents or negative
publicity impacting the reputations of the company's brands; 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 http://investors.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
SUBSIDIARIESRECONCILIATION 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 or losses 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 40 Weeks Ended July 3,2016 July
5,2015 July 3,2016 July 5,2015 Diluted earnings per share
fromcontinuing operations – GAAP $ 0.93 $ 0.75 $ 2.72 $ 2.30
Restructuring charges 0.15 — 0.14 — (Gains) losses from
refranchising (0.01 ) — (0.02 ) 0.07 Operating earnings per
share – Non-GAAP $ 1.07 $ 0.76 $ 2.84 $ 2.37
JACK IN THE BOX INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS
(In thousands, except per share
data)
(Unaudited)
12 Weeks Ended 40 Weeks Ended July
3, 2016 July 5, 2015 July 3,
2016 July 5, 2015 Revenues: Company
restaurant sales $ 278,829 $ 270,655 $ 903,842 $ 891,455 Franchise
rental revenues 52,878 52,375 175,218 174,036 Franchise royalties
and other 37,231 36,476 121,852 120,758
368,938 359,506 1,200,912 1,186,249
Operating costs and expenses, net: Company restaurant costs: Food
and packaging 81,825 82,649 272,802 279,790 Payroll and employee
benefits 76,910 72,896 250,954 241,648 Occupancy and other 59,118
56,103 196,344 187,602 Total company
restaurant costs 217,853 211,648 720,100 709,040 Franchise
occupancy expenses 38,848 39,087 128,475 130,821 Franchise support
and other costs 3,654 3,449 12,423 11,915 Selling, general and
administrative expenses 42,768 50,986 155,535 166,553 Impairment
and other charges, net 10,519 3,758 14,598 8,068 (Gains) losses on
the sale of company-operated restaurants (409 ) 183 (1,224 )
4,353 313,233 309,111 1,029,907
1,030,750 Earnings from operations 55,705 50,395 171,005
155,499 Interest expense, net 7,613 4,504 22,699
13,937 Earnings from continuing operations and before
income taxes 48,092 45,891 148,306 141,562 Income taxes 17,308
17,528 54,597 52,739 Earnings from
continuing operations 30,784 28,363 93,709 88,823 Losses from
discontinued operations, net of income tax benefit (595 ) (1,532 )
(1,617 ) (3,152 ) Net earnings $ 30,189 $ 26,831 $
92,092 $ 85,671 Net earnings per share -
basic: Earnings from continuing operations $ 0.94 $ 0.76 $ 2.75 $
2.34 Losses from discontinued operations (0.02 ) (0.04 ) (0.05 )
(0.08 ) Net earnings per share (1) $ 0.92 $ 0.72 $
2.70 $ 2.26 Net earnings per share - diluted:
Earnings from continuing operations $ 0.93 $ 0.75 $ 2.72 $ 2.30
Losses from discontinued operations (0.02 ) (0.04 ) (0.05 ) (0.08 )
Net earnings per share (1) $ 0.91 $ 0.71 $ 2.67
$ 2.22 Weighted-average shares outstanding:
Basic 32,642 37,106 34,073 37,980 Diluted 33,016 37,661 34,469
38,630 Cash dividends declared per common share $ 0.30 $
0.30 $ 0.90 $ 0.70
___________________________
(1) Earnings per share may not add due to rounding.
JACK IN THE BOX INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share and per
share data)
(Unaudited)
July 3, 2016 September 27,
2015 ASSETS Current assets: Cash and cash equivalents $
6,647 $ 17,743 Accounts and other receivables, net 61,990 47,975
Inventories 7,933 7,376 Prepaid expenses 38,064 16,240 Assets held
for sale 19,546 15,516 Other current assets 2,073 3,106
Total current assets 136,253 107,956 Property
and equipment, at cost 1,592,049 1,563,377 Less accumulated
depreciation and amortization (874,562 ) (835,114 ) Property and
equipment, net 717,487 728,263 Intangible assets, net
14,177 14,765 Goodwill 149,007 149,027 Other assets, net 274,590
303,968 $ 1,291,514 $ 1,303,979
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities:
Current maturities of long-term debt $ 26,286 $ 26,677 Accounts
payable 21,289 32,137 Accrued liabilities 173,764 170,575
Total current liabilities 221,339 229,389
Long-term debt, net of current maturities 869,982 688,579 Other
long-term liabilities 367,668 370,058 Stockholders’ (deficit)
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, 81,428,150 and 81,096,156 issued,
respectively 814 811 Capital in excess of par value 421,195 402,986
Retained earnings 1,377,565 1,316,119 Accumulated other
comprehensive loss (145,616 ) (132,530 ) Treasury stock, at cost,
48,765,738 and 45,314,529 shares, respectively (1,821,433 )
(1,571,433 ) Total stockholders’ (deficit) equity (167,475 ) 15,953
$ 1,291,514 $ 1,303,979
JACK IN THE BOX INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
(Unaudited)
40 Weeks Ended July 3, 2016
July 5, 2015 Cash flows from operating activities:
Net earnings $ 92,092 $ 85,671 Adjustments to reconcile net
earnings to net cash provided by operating activities: Depreciation
and amortization 70,314 68,205 Deferred finance cost amortization
2,049 1,690 Excess tax benefits from share-based compensation
arrangements (3,822 ) (17,781 ) Deferred income taxes 15,672 (4,046
) Share-based compensation expense 9,220 10,041 Pension and
postretirement expense 10,374 14,423 Gains on cash surrender value
of company-owned life insurance (5,008 ) (1,960 ) (Gains) losses on
the sale of company-operated restaurants (1,224 ) 4,353 Losses on
the disposition of property and equipment 2,295 1,074 Impairment
charges and other 2,928 4,813 Changes in assets and liabilities:
Accounts and other receivables (16,333 ) (6,895 ) Inventories (557
) 33 Prepaid expenses and other current assets (7,677 ) 20,760
Accounts payable (7,466 ) 690 Accrued liabilities 1,534 4,215
Pension and postretirement contributions (14,700 ) (14,359 ) Other
(2,992 ) (5,782 ) Cash flows provided by operating activities
146,699 165,145 Cash flows from investing activities:
Purchases of property and equipment (74,971 ) (54,832 ) Purchases
of assets intended for sale and leaseback (5,593 ) (8,323 )
Proceeds from the sale and leaseback of assets 7,748 — Proceeds
from the sale of company-operated restaurants 1,434 2,651
Collections on notes receivable 3,237 5,648 Acquisition of
franchise-operated restaurants 324 — Other 51 1,888
Cash flows used in investing activities (67,770 ) (52,968 ) Cash
flows from financing activities: Borrowings on revolving credit
facilities 576,000 742,000 Repayments of borrowings on revolving
credit facilities (376,000 ) (698,000 ) Proceeds from issuance of
debt — 300,000 Principal repayments on debt (19,651 ) (198,217 )
Debt issuance costs — (1,942 ) Dividends paid on common stock
(30,513 ) (26,556 ) Proceeds from issuance of common stock 5,093
14,590 Repurchases of common stock (250,000 ) (254,668 ) Excess tax
benefits from share-based compensation arrangements 3,822 17,781
Change in book overdraft 1,213 — Cash flows used in
financing activities (90,036 ) (105,012 ) Effect of exchange rate
changes on cash and cash equivalents 11 (37 ) Net (decrease)
increase in cash and cash equivalents (11,096 ) 7,128 Cash and cash
equivalents at beginning of period 17,743 10,578 Cash
and cash equivalents at end of period $ 6,647 $ 17,706
JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
The following table presents certain
income and expense items included in our condensed
consolidated statements of earnings as a
percentage of total revenues, unless otherwise indicated.
Percentages may not add due to
rounding.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA
(Unaudited) 12 Weeks Ended 40 Weeks
Ended July 3, 2016 July 5,
2015 July 3, 2016 July 5,
2015 Revenues: Company restaurant sales 75.6 % 75.3 % 75.3 %
75.1 % Franchise rental revenues 14.3 % 14.6 % 14.6 % 14.7 %
Franchise royalties and other 10.1 % 10.1 % 10.1 % 10.2 % Total
revenues 100.0 % 100.0 % 100.0 % 100.0 % Operating costs and
expenses, net: Company restaurant costs: Food and packaging (1)
29.3 % 30.5 % 30.2 % 31.4 % Payroll and employee benefits (1) 27.6
% 26.9 % 27.8 % 27.1 % Occupancy and other (1) 21.2 % 20.7 % 21.7 %
21.0 % Total company restaurant costs (1) 78.1 % 78.2 % 79.7 % 79.5
% Franchise occupancy expenses (2) 73.5 % 74.6 % 73.3 % 75.2 %
Franchise support and other costs (3) 9.8 % 9.5 % 10.2 % 9.9 %
Selling, general and administrative expenses 11.6 % 14.2 % 13.0 %
14.0 % Impairment and other charges, net 2.9 % 1.0 % 1.2 % 0.7 %
(Gains) losses on the sale of company-operated restaurants (0.1 )%
0.1 % (0.1 )% 0.4 % Earnings from operations 15.1 % 14.0 % 14.2 %
13.1 % Income tax rate (4) 36.0 % 38.2 % 36.8 % 37.3 %
____________________________
(1) As a percentage of company restaurant sales.(2) As a
percentage of franchise rental revenues.(3) As a percentage of
franchise royalties and other.(4) 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 margin, and restaurant costs and margin
as a percentage of the related sales. Percentages may not add due
to rounding.
SUPPLEMENTAL COMPANY RESTAURANT
OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
12 Weeks Ended 40 Weeks Ended July
3, 2016 July 5, 2015 July 3, 2016
July 5, 2015
Jack in the Box:
Company restaurant sales
$ 179,458 $ 179,451 $ 595,401
$ 605,786 Company restaurant costs:
Food and packaging
51,893 28.9 % 55,218 30.8 % 179,142 30.1 % 192,906 31.8 % Payroll
and employee benefits 50,654 28.2 % 49,599 27.6 % 167,744 28.2 %
167,227 27.6 % Occupancy and other 36,446 20.3 % 35,115
19.6 % 121,522 20.4 % 119,797 19.8 % Total
company restaurant costs 138,993 77.5 % 139,932 78.0
% 468,408 78.7 % 479,930 79.2 % Restaurant margin $
40,465 22.5 % $ 39,519 22.0 % $ 126,993 21.3 %
$ 125,856 20.8 %
Qdoba: Company restaurant sales $
99,371 $ 91,204 $ 308,441 $ 285,669 Company restaurant costs: Food
and packaging 29,932 30.1 % 27,431 30.1 % 93,660 30.4 % 86,884 30.4
% Payroll and employee benefits 26,256 26.4 % 23,297 25.5 % 83,210
27.0 % 74,421 26.1 % Occupancy and other 22,672 22.8 %
20,988 23.0 % 74,822 24.3 % 67,805 23.7 %
Total company restaurant costs 78,860 79.4 % 71,716
78.6 % 251,692 81.6 % 229,110 80.2 % Restaurant
margin $ 20,511 20.6 % $ 19,488 21.4 % $ 56,749
18.4 % $ 56,559 19.8 %
The following table presents franchise revenues, costs and
margin in each period:
SUPPLEMENTAL FRANCHISE OPERATIONS
DATA
(Dollars in thousands)
(Unaudited)
12 Weeks Ended 40 Weeks Ended July
3, 2016 July 5, 2015 July 3,
2016 July 5, 2015 Franchise rental
revenues $ 52,878 $ 52,375 $ 175,218 $ 174,036 Royalties
36,554 35,936 119,338 117,659 Franchise fees and other 677
540 2,514 3,099 Franchise royalties and other
37,231 36,476 121,852 120,758 Total
franchise revenues 90,109 88,851 297,070
294,794 Rental expense 31,595 31,431 103,783 105,336
Depreciation and amortization 7,253 7,656 24,692
25,485 Franchise occupancy expenses 38,848 39,087
128,475 130,821 Franchise support and other costs 3,654
3,449 12,423 11,915 Total franchise costs
42,502 42,536 140,898 142,736 Franchise
margin $ 47,607 $ 46,315 $ 156,172 $ 152,058
Franchise margin as a % of franchise revenues 52.8 % 52.1 %
52.6 % 51.6 %
The following table provides information related to our
operating segments in each period:
SUPPLEMENTAL SEGMENT REPORTING
INFORMATION
(In thousands)
(Unaudited)
12 Weeks Ended 40 Weeks Ended July
3, 2016 July 5, 2015 July 3,
2016 July 5, 2015 Revenues by
segment: Jack in the Box restaurant operations $ 264,493 $
263,339 $ 876,138 $ 884,734 Qdoba restaurant operations 104,445
96,167 324,774 301,515 Consolidated
revenues $ 368,938 $ 359,506 $ 1,200,912 $
1,186,249
Earnings from operations by segment: Jack
in the Box restaurant operations $ 69,528 $ 62,355 $ 218,364 $
207,523 Qdoba restaurant operations 14,172 13,805 33,532 37,265
Shared services and unallocated costs (28,404 ) (25,582 ) (82,115 )
(84,936 ) Gains (losses) on the sale of company-operated
restaurants 409 (183 ) 1,224 (4,353 ) Consolidated
earnings from operations 55,705 50,395 171,005 155,499 Interest
expense, net 7,613 4,504 22,699 13,937
Consolidated earnings from continuing operations and before income
taxes $ 48,092 $ 45,891 $ 148,306 $ 141,562
Total depreciation expense by segment: Jack in the
Box restaurant operations $ 14,877 $ 14,737 $ 50,409 $ 49,051 Qdoba
restaurant operations 4,536 3,864 14,403 13,179 Shared services and
unallocated costs 1,401 1,573 4,936 5,445
Consolidated depreciation expense $ 20,814 $ 20,174
$ 69,748 $ 67,675 The following table
summarizes the year-to-date changes in the number and mix of Jack
in the Box ("JIB") and Qdoba company and franchise restaurants:
SUPPLEMENTAL RESTAURANT ACTIVITY
INFORMATION
(Unaudited)
July 3, 2016 July 5, 2015
Company Franchise Total
Company Franchise Total Jack
in the Box: Beginning of year 413 1,836 2,249 431 1,819 2,250
New 2 9 11 2 12 14 Refranchised (1 ) 1 — (21 ) 21 — Acquired from
franchisees 1 (1 ) — 7 (7 ) — Closed — (6 ) (6 ) (6 ) (10 )
(16 ) End of period 415 1,839 2,254 413
1,835 2,248 % of JIB system 18 % 82 % 100 % 18 % 82 %
100 %
Qdoba: Beginning of year 322 339 661 310 328 638 New
26 11 37 8 15 23 Closed (4 ) (6 ) (10 ) (4 ) (9 ) (13 ) End of
period 344 344 688 314 334 648
% of Qdoba system 50 % 50 % 100 % 48 % 52 % 100 %
Consolidated:
Total system 759 2,183 2,942 727 2,169
2,896 % of consolidated system 26 % 74 % 100 % 25 %
75 % 100 %
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Jack in the Box Inc.Investor Contact:Carol DiRaimo, (858)
571-2407orMedia Contact:Brian Luscomb, (858) 571-2291
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