New lines boost US burger chain
Hamburger chain Jack in the Box Inc posted a better-than-expected quarterly profit, helped by a rise in revenue on addition of new products to its menu, and raised the top end of its 2008 earnings forecast, sending its shares up more than 5 percent.
The company, whose products range from burgers and fries to salads, tacos, and breakfast items, said same-store sales rose 1.5 percent at its namesake restaurants for the first quarter.
Same-store sales at the San-Diego based chain were slightly hurt by the California rain storm in January, analyst Brian Moore of Wedbush Morgan Securities said by phone.
"The company has tremendous product momentum and I expect new products (like smoothies) to drive same-store sales growth," Moore added.
Jack in the Box launched several products such as sirloin steak melt, grilled chicken strips, chicken fajita pita and a value-priced combo meal, The Big Deal, in the first quarter.
The company, which competes with McDonald's Corp, Burger King Holdings Inc and Yum! Brands Inc, plans to roll out three flavors of real fruit smoothies in partnership with Coca-Cola Co in the third quarter.
For the second quarter, the company sees a 1 percent to 2 percent rise in same-store sales at Jack in the Box company restaurants and a 3 percent to 5 percent increase at Qdoba system restaurants.
For the year ending Sept 30, 2008, it sees earnings of $1.98 to $2.08 a share, including charges of 17 cents a share related to its restaurant re-image program and higher tax rate. It had previously forecast earnings of $1.98 to $2.06 a share, including charges of 15 cents a share.
Analysts were expecting a profit of $2.06 a share, before items, according to Reuters Estimates.
Agencies
(China Daily 02/22/2008 page17)
