Foodmaker, Inc. operator and franchiser of Jack in the Box restaurants, reported earnings of $10 million, or 25 cents per share in the third quarter, compared with $5.5 million, or 14 cents per share, reported in the third quarter a year ago.
The company also reported its 10th consecutive quarter of improved per store average (PSA) sales at comparable company restaurants. PSA sales grew 7.7%, in addition to the 5.2% improvement in the same quarter a year ago.
"In an industry that continues to be fiercely competitive, Jack in the Box has been able to grow our business by meeting the wants and needs of our customers," said Robert J. Nugent, Foodmaker's president and chief executive officer. "Our product improvements have resulted in significant sales increases that clearly reflect consumer expectations of quality. We are committed to standing out among our competitors in quality and service."
Sales at company-operated restaurants grew 12.3% to nearly $235 million during the third quarter compared with the same quarter a year earlier, while systemwide sales improved 10.5% to $317.1 million. Total revenues increased 3.5% to $251.7 million in spite of a decline in distribution sales.
Average check amounts rose 2.2% in the third quarter compared with a decline of 1.6% during the same period a year ago. Simultaneously, customer visits grew 5.5% beyond the 6.8% growth experienced in the third quarter last year.
In addition to a renewed commitment to product and service improvements, the company showcased its signature sandwich, the Sourdough Jack hamburger. It was promoted with specially developed advertising utilizing the company's popular antenna balls featuring the likeness of "founder" and "company spokesperson," 'Jack.' The company has sold nearly three million Jack antenna balls since the original advertising campaign began. In the commercials, each antenna ball has a distinctive personality.
Also during the quarter, the company introduced new Jack Vehicles as a kid's meal promotion, a series of five toy vehicles featured in the Jack's Back television commercials.
The company continued its growth plans, which call for opening up to 80 new Jack in the Box units by the end of the fiscal year. At the end of the third quarter, there were 920 company-operated restaurants, an increase of 53 restaurants from a year ago.
Foodmaker operates and franchises 1,280 Jack in the Box restaurants, primarily in the West. With more than $1 billion in annual revenues, the company has 26,000 employees and is headquartered in San Diego.
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