1Q97 earnings nearly doubled from year ago, up 91%. Systemwide restaurant
sales up 8.7%. Revenues down 2% due to reduction of very low margin
distribution portion of their business:
Foodmaker, Inc. Nearly Doubles First Quarter Earnings From a Year Ago
Reports Earnings of $9 Million, or 23 Cents Per Share
SAN DIEGO--(BUSINESS WIRE)--Feb. 6, 1997--Building on its momentum from
brand-building advertising and product quality improvements, Foodmaker Inc ,
operator and franchiser of Jack in the Box(R) restaurants, today reported
first quarter earnings of $9 million, or 23 cents per share, nearly double
the earnings of $4.7 million, or 12 cents per share, reported in the first
quarter a year ago.
At company restaurants, sales grew 9.5 percent to $291 million in the first
quarter, compared with $266 million in the same quarter a year ago.
Systemwide, sales improved to $401 million for the quarter, or 8.7 percent.
Per store average (PSA) sales at comparable company restaurants increased
6.5 percent in the first quarter on top of the 10.9 percent increase
experienced in the first quarter last year.
Customer visits to Jack in the Box restaurants increased 7.5 percent, more
than offsetting the impact of discounting that led to an average check
decline of 1 percent.
First quarter revenues were down 2 percent to $323 million, compared with
the first quarter a year ago, reflecting a decline in distribution sales,
primarily as a result of franchisees choosing to form their own purchasing
cooperative. Citing the low-margin nature of the distribution business, the
overall financial impact is minimal, the company reported.
"Jack in the Box continues to capitalize on its niche, bringing
adult-oriented, favorite foods to a fast-food environment, with
brand-building advertising and product quality improvements to distinguish
us from competitors," said Robert J. Nugent, Foodmaker's president and chief
executive officer.
The company's two-tier marketing strategy of competing on value while
offering premium sandwiches continued to produce results. A new line
extension, the Bacon Ultimate Cheeseburger, along with the reintroduction of
the Philly Cheesesteak, led premium offerings, while the Jumbo Jack(R) and
two tacos, each at 99 cents, showcased the value menu.
Foodmaker operates and franchises 1,259 Jack in the Box restaurants,
primarily in the West and Southwest. With more than $1 billion in annual
revenues, the company has 25,000 employees and is headquartered in San
Diego.
FOODMAKER, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Sixteen Weeks Ended
January 19, January 21,
1997 1996
Revenues:
Restaurant sales $291,212 $266,065
Distribution sales 20,575 52,600
Franchise rents and royalties 10,670 10,389
Other 1,026 1,576
323,483 330,630
Costs and expenses:
Costs of revenues:
Restaurant costs of sales 98,197 86,382
Restaurant operating costs 150,329 143,106
Costs of distribution sales 20,351 51,938
Franchised restaurant costs 6,479 6,236
Selling, general and administrative 23,894 20,630
Interest expense 12,606 14,649
311,856 322,941
Earnings before income taxes 11,627 7,689
Income taxes 2,600 2,999
Net earnings $ 9,027 $ 4,690
Net earnings per share
-- primary and fully diluted $ 0.23 $ 0.12
Weighted average shares outstanding 39,494 39,190
CONTACT: Foodmaker, Inc., San Diego
Karen Bachmann, 619/571-2182 |
