Jack in the Box Reports $32M in Net Earnings in First Quarter

Jack in the Box Inc. reported net earnings of $32.4 million for the first quarter Wednesday.

The first quarter, which ended on Jan. 23, results in 61 cents per diluted share compared to 43 cents for the year-ago period.

Linda A. Lang, chairman, chief executive officer and president, said the company's refranchising strategy and planned overhead reductions resulted in lower general and administrative costs of approximately $4.3 million.

"Refranchising is a critical element in transforming the company to a business model that is less capital intensive and not as susceptible to cost fluctuations,'' Lang said. At the end of the first quarter, the Jack in the Box system was more
than 60 percent franchised. We are ahead of our plan to achieve our goal to increase the percentage of franchise ownership in the Jack in the Box system to 70 to 80 percent by the end of fiscal year 2013.''

Gains from refranchising contributed 34 cents per diluted share for the quarter, compared with 11 cents in the prior-year quarter, according to the San Diego-based fast-food chain,   

As of Jan. 23, the company was comprised of 2,213 Jack in the Box restaurants in 19 states, including 1,340 franchised locations, and 542 Qdoba Mexican Grill restaurants in 43 states and the District of Columbia, including 348 franchised eateries.

There is one Jack in the Box in the city on Poway Road.

City News Service contributed to this report.