Jack In The Box Q4 Profit Rises

(RTTNews) - Jack in the Box Inc. (JACK) Wednesday reported a surge in profit for the fourth quarter, helped by lower costs and smaller losses from discontinued operations, which erased a decline in revenues.

The San Diego, California-based company's fourth-quarter profit rose to $24.1 million or $0.54 per share from $19.2 million or $0.42 per share last year.

Excluding restructuring charges and gains/losses from refranchising, operating earnings were $0.45 per share compared to $0.31 per share last year.

On average, 13 analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter dropped to $337.98 million from $348.90 million last year. Jack in the Box operates namesake quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants.

Eleven analysts had a consensus revenue estimate of $336.28 million for the quarter.

System wide same-store sales at Jack in the Box restaurants declined 1.4 percent in the quarter, while Qdoba Mexican restaurants improved 2.0 percent.

"Jack in the Box company same-store sales decreased 0.2 percent for the quarter. After a slow start, however, sales accelerated and were positive for each of the last six weeks of the quarter," Chief Executive Linda Lang said.

"We refranchised 78 Jack in the Box restaurants in fiscal 2013, including 56 in the fourth quarter. Our system is now approximately 79 percent franchised, and we're near our goal of franchise ownership in the 80 to 85 percent range."

Operating costs for the quarter dropped to $301.3 million from $317.8 million last year.

Looking forward to the first quarter, the company expects same-store sales to increase about 1.5 to 2.5 percent at Jack in the Box company restaurants, and around 1.5 to 2.5 percent at Qdoba company restaurants.

For the fiscal year 2014, the company sees operating earnings from continuing operations between $2.15 and $2.30 per share. Analysts currently expect the company to earn $1.76 per share for 2014.

JACK closed Wednesday's trading at $44.70, up $0.12 or 0.27%, on the Nasdaq. The stock further gained $1.72 or 3.85% in after-hours trade.