Jack in the Box Posts Upbeat Q1 Earnings, Lifts FY15 Forecast

reported better-than-expected results for the fiscal second quarter and lifted its earnings outlook for the year. The San Diego, California-based company reported quarterly earnings from continuing operations of $23.4 million, or $0.61 per share, versus earnings from continuing operations of $18.3 million, or $0.43 per share, in the year-ago period. Excluding items, the company's operating earnings rose to $0.69 per share from $0.51 per share. Its revenue rose to $358.1 million from $340.9 million. However, analysts were expecting a profit of $0.67 per share on revenue of $356.14 million. The average estimate among 15 Estimize users was for earnings of $0.67 per share and revenue of $356.49 million. Jack in the Box system same-store sales rose 8.9 percent for the quarter, while company same-store sales jumped 7.4 percent. Qdoba same-store sales climbed 8.3 percent system-wide during the quarter. Consolidated restaurant operating margin rose 210 basis points to 20.6 percent of sales, from 18.5 percent of sales. Franchise costs for the second quarter shrank to 48.3 percent of franchise revenue, compared to 50.5 percent in the year-ago quarter. During the second quarter, Jack in the Box repurchased around 777,000 shares of its common stock for an aggregate cost of $75.0 million. The company also lifted its quarterly cash dividend by 50 percent to $0.30 per share. Lenny Comma, chairman and chief executive officer, said, "We're pleased with our second quarter performance, which culminated in a 35 percent increase in operating earnings per share resulting from strong same-store sales growth and margin expansion at both Jack in the Box® and Qdoba Mexican Grill®." Jack in the Box now expects FY15 adjusted earnings of $2.90 to $3 per share, versus earlier outlook of $2.85 to $2.97 per share. Jack In The Box shares rose 0.02 percent to $91.80 in after-hours trading.