Jack In The Box Conference Call Highlights

reported its fourth quarter earnings on Tuesday. Shares of the company are up 3 percent. Below are some key highlights form its conference call. • Jack in the Box reported another solid quarter yesterday, better than expected same-store sales growth, margin expansion at both Jack in the Box and Qdoba brands. • 10% reduction in our share count drove a 20% increase in operating EPS versus the year ago quarter. • This performance capped a terrific year for the company with operating EPS of 35% of our third consecutive year of growth in excess of 30%. • Our business model transformation is essentially complete. • We've reached our targeted franchise ownership levels for the Jack in the Box brand of 80% to 85%. • We refranchised 37 restaurants during the year including two of our three remaining Southeast markets. • During the year, we completed our comprehensive review of the Qdoba brand strategy, and began implementing several initiatives to differentiate us from the competition. • Although, we're still in very early stages of executing in our brand positioning work. • Company's same-store sales increased 5.7% for the year, including same-store sales growth in excess of 7% over the last three quarters. • Qdoba restaurant operating margin improved 40 basis points for the year to 18.3% and systemwide sales increased 13% for the year due same-store sales growth and new opening. • On the Jack in the Box side, company's same-store sales increased 2% for fiscal 2014, outpacing the QSR industry each quarter. • The benefit of same-store sales growth and our refranchising strategy contributed to higher Jack in the Box restaurant margin. • During the year, 38 new Qdoba restaurants and 12 new Jack in the Box restaurants opened system-wide. • We also returned a significant amount of cash to our shareholders during the year to the repurchase of nearly $320 million of common stock, well over 10% of our market cap. • Over the last five years, we've returned more than $775 million in cash to shareholders to stock buybacks at an average price $31.39. • Now, turning to our fourth quarter results, same-store sales at Jack in the Box Company restaurants increased 3.1%. • System wide, we continued to outperform the industry with same-store sales growth, 330 basis points higher than the QSR sandwich segment. • Breakfast and late-night remained our strongest dayparts in the quarter, driven by products like our new breakfast burrito and jalapeno burger that we added to our late-night menu in June. • We also promoted two extensions of our signature Ultimate Cheeseburger along with an affordable $4.99 combo meal featuring Jack's Spicy Chicken Club sandwich, fries and a drink. • Our menu marketing strategy continues to emphasize a mix of premium products and limited time offers as well as value priced combos, strategically we've chosen not to pursue deep discounting at the expense of margins. • We don't believe that's the way for us to effectively compete in the segment and we're willing to sacrifice some of that low margin traffic to others. • Turning to Qdoba, same-store sales in the fourth quarter increased 7.1% for the company operated restaurants and 7.7% system wide. • Our third consecutive quarter of sales growth above 7%. • Those performance reflected solid transaction growth to benefit the continued menu innovation less discounting and another quarter of double-digit growth in catering sales.

• Our 20% growth in operating EPS in the quarter, and three consecutive years of operating EPS growth in excess of 30%. • With positive same-store sales growth at both brands and the benefit of refranchising, we were able to drive significant margin improvement and return a substantial lot of cash to shareholders. • We refranchised 23 Jack in the Box restaurants, in two of the three remaining Southeast markets, during the fourth quarter. • This leaves us with roughly 20 restaurants that we expect to refranchise in the second quarter of 2015, for which we have a signed letter of intent. • For the fourth quarter, consolidated restaurant operating margins improved 190 basis points to 18% of sales as same-store sales growth translated into May's margin expansion at both brands.

• Operating earnings per share are expected to range from $2.73 to $2.88 in fiscal 2015 compared to operating earnings per share of $2.45 in fiscal 2014. • We now estimate EPS sensitivity as follows; every 1% change in Jack in the Box system same-store sales. • We estimate the annual impact to earnings is about $0.10 per share, approximately $0.04 of which relates to company operations depending on flow. • The impact of a 1% change in Qdoba company same-store sales is approximately $2.5 and for every 10 basis points.