Jack in the Box Sees 2011 EPS of $1.41 to $1.68

Jack in the Box Inc. JACK updates guidance:

First quarter fiscal year 2011 guidance

• Same-store sales are expected to range from down 1 percent to up 1 percent at Jack in the Box company restaurants versus an 11.1 percent decrease in the year-ago quarter.
• Same-store sales are expected to increase approximately 4 to 6 percent at Qdoba system restaurants versus a 1.7 percent decrease in the year-ago quarter.

Fiscal year 2011 guidance

• Same-store sales are expected to range from down 2 percent to up 2 percent at Jack in the Box company restaurants.
• Same-store sales are expected to increase approximately 2 to 4 percent at Qdoba system restaurants.
• Overall commodity costs are expected to increase by 1 to 2 percent for the full year, with higher inflation in the first half of the fiscal year.
• Restaurant operating margin for the full year is expected to range from 14.0 to 14.5 percent, depending on same-store sales and commodity inflation.
• Diluted earnings per share of $1.41 to $1.68, with the range reflecting uncertainty in the timing of anticipated refranchising transactions as well as same-store sales volatility. Gains from refranchising are expected to contribute from $0.66 to $0.78 to diluted earnings per share, as compared to $0.65 in fiscal 2010. Operating earnings per share, which the company defines as diluted earnings per share on a GAAP basis less gains from refranchising, are expected to range from $0.75 to $0.90 per diluted share. Diluted earnings per share includes approximately $0.10 to $0.12 of incremental re-image incentive payments to franchisees in fiscal 2011 as compared to fiscal 2010.