Jack in the Box Profit Up Despite Higher Food Costs
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Jack in the Box Inc. (JBX) Wednesday reported higher quarterly earnings, as improved sales on new products like a chicken ciabatta sandwich offset higher beef and produce prices, sparking a 7.5 percent jump in its shares.
Net income for the fiscal second quarter ended April 17 rose to $20.7 million, or 55 cents per share, from $18.7 million, or 51 cents per share, a year ago.
Wall Street analysts had expected earnings of between 49 cents and 50 cents per share, with an average view of 50 cents, according to Reuters Estimates.
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Revenue rose 11.5 percent to $577 million. Sales at its namesake restaurants open at least a year rose 3.1 percent, higher than the 1 percent increase the company had forecast.
The company, which has more than 2,000 restaurants and franchises in 17 states, said compliance with the Sarbanes-Oxley guidelines for corporate accountability and other expenses cut 5 cents a share from earnings.
For the year, Jack in the Box raised its earnings forecast 3 cents a share to $2.46. Analysts on average forecast $2.43 a share for the fast-food chain.
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For the third quarter, the company forecast 60 cents a share, while analysts, on average forecast 63 cents a share, according to Reuters Estimates.
Jack in the Box shares were up $2.80 at $39.50 on Wednesday on the New York Stock Exchange (search).