Jeff Smith 2:30 p.m., March 13
Jack in the Box: More Burgers, Fewer Bucks
Local fast food burger peddler Jack in the Box announced third quarter earnings today. For the company’s fiscal quarter ended July 10, overall earnings were down $5.5 million over the same quarter in 2010, dropping to $18.7 million from $24.2 million.
The drops come even as same-store sales at Jack in the Box are up 3.2%. Sales at Qdoba Mexican Grill, the company’s other property, are up 5.1%. None of Qdoba’s 550+ restaurants are in the company’s home market of San Diego.
Employee benefits and payroll costs were down 0.8%, and could have decreased further if it weren’t for some states’ decision to increase unemployment taxes due to the state of the economy.
Some explanation for lower returns could be found in rising commodities prices, as higher costs for beef, cheese, eggs, and other products contributed to a 6.5% cost increase.