Jack in the Box Inc. Reports Second Quarter FY 2016 Earnings; Updates Guidance for FY 2016; Declares Quarterly Cash Dividend

SAN DIEGO--()--Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $29.0 million, or $0.85 per diluted share, for the second quarter ended April 10, 2016, compared with $23.4 million, or $0.61 per diluted share, for the second quarter of fiscal 2015.

Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, were $0.85 in the second quarter of fiscal 2016 compared with $0.69 in the prior year quarter.

A reconciliation of non-GAAP measurements to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.

  12 Weeks Ended   28 Weeks Ended
April 10,
2016
  April 12,
2015
April 10,
2016
  April 12,
2015
Diluted earnings per share from
continuing operations – GAAP
$ 0.85 $ 0.61 $ 1.78 $ 1.55
Losses (gains) from refranchising   0.08   (0.01 ) 0.07
Operating earnings per share – Non-GAAP $ 0.85   $ 0.69   $ 1.77   $ 1.62

Lenny Comma, chairman and chief executive officer, said, “Operating earnings per share for the second quarter exceeded our expectations and guidance, and resulted primarily from healthy margins and cost controls combined with mark-to-market adjustments and a lower tax rate. We were pleased with the solid sales performance at Qdoba® company restaurants, which was driven by traffic growth, as well as with the improvement in labor costs and margins as compared to the first quarter.

"At the Jack in the Box® brand, system same-store sales were flat for the quarter as compared to an increase of 8.9 percent in the prior year. In late January, we introduced multiple upgrades to the core menu at our Jack in the Box restaurants system-wide, and in the latter half of the quarter, we featured the improved products in marketing messages at price points conveying both value and quality.

"We look forward to sharing our growth plans and strategies to enhance shareholder value at our upcoming investor meeting."

Increase (decrease) in same-store sales:

    12 Weeks Ended   28 Weeks Ended
April 10,
2016
  April 12,
2015
April 10,
2016
  April 12,
2015
Jack in the Box:
Company (1.0 )% 7.4 % (0.2 )% 5.3 %
Franchise 0.3 % 9.4 % 1.1 % 6.7 %
System 0.0 % 8.9 % 0.8 % 6.3 %
Qdoba:
Company 3.1 % 7.0 % 2.2 % 10.2 %
Franchise 1.2 % 9.6 % 1.8 % 12.6 %
System 2.1 % 8.3 % 2.0 % 11.4 %
 

Jack in the Box system same-store sales were flat for the quarter, and lagged the QSR sandwich segment by 2.7 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 10, 2016. Included in this segment are 16 of the top QSR sandwich and burger chains in the country. Company same-store sales decreased 1.0 percent, with average check up 1.4 percent.

Qdoba same-store sales increased 2.1 percent system-wide and 3.1 percent for company restaurants in the second quarter. Company same-store sales reflected a 3.7 percent increase in transactions as well as growth in catering sales.

Consolidated restaurant operating margin decreased by 70 basis points to 19.9 percent of sales in the second quarter of 2016, compared with 20.6 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box company restaurants decreased 70 basis points to 20.7 percent of sales. The decrease was due primarily to minimum wage increases in California that went into effect in January 2016 and higher costs related to equipment upgrades which were partially offset by favorable food and packaging costs. The decrease in food and packaging costs as a percentage of sales resulted from the benefit of commodity deflation of approximately 2.9 percent in the quarter, favorable product mix changes and menu price increases. Restaurant operating margin for Qdoba company restaurants decreased 50 basis points to 18.3 percent of sales, as costs associated with a greater number of new restaurant openings and higher promotional activity more than offset the sales growth and benefits from commodity deflation of approximately 4.6 percent in the quarter.

Franchise margin as a percentage of total franchise revenues improved to 53.8 percent in the second quarter from 51.7 percent in the prior year quarter. The improvement was due primarily to higher net rental income of $1.9 million recognized in the quarter related to previously refranchised Jack in the Box markets. This annual adjustment resulted from higher sales over the last year.

SG&A expense for the second quarter decreased by $5.6 million and was 13.0 percent of revenues as compared to 14.7 percent in the prior year quarter. The decrease reflects a $3.9 million decrease in incentive compensation and a $1.2 million decrease in pension and postretirement benefits related to the sunsetting of the company's qualified pension plan on December 31, 2015. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $2.3 million in the second quarter of 2016 as compared to a positive impact of $1.6 million in the second quarter of 2015, resulting in a year-over-year decrease in SG&A of $0.7 million. These decreases were partially offset by a $2.0 million increase in advertising costs at Qdoba due to the timing of promotional activities, and higher pre-opening costs of $0.6 million resulting from a greater number of Qdoba openings and restaurants under construction in the second quarter.

Interest expense, net, increased by $2.7 million in the second quarter due to increased leverage and a higher effective interest rate for 2016.

The tax rate for the second quarter of 2016 was 36.7 percent versus 37.9 percent for the second quarter of 2015. The lower tax rate in the second quarter of 2016 was due primarily to favorable adjustments on investments supporting the company's non-qualified retirement plans.

Capital Allocation

The company repurchased approximately 2,177,000 shares of its common stock in the second quarter of 2016 at an average price of $68.90 per share for an aggregate cost of $150.0 million. This leaves $50.0 million remaining under a stock-buyback program authorized by the company’s Board of Directors in February 2016 that expires in November 2017. In May 2016, the company’s Board of Directors authorized an additional $100 million stock buyback program that also expires in November 2017.

The company also announced today that on May 5, 2016, its Board of Directors declared a quarterly cash dividend of $0.30 per share on the company’s common stock. The dividend is payable on June 7, 2016, to shareholders of record at the close of business on May 24, 2016.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 3, 2016, and fiscal year ending October 2, 2016. Fiscal 2016 is a 53-week year, with 16 weeks in the first quarter, 12 weeks in each of the second and third quarters, and 13 weeks in the fourth quarter.

Third quarter fiscal year 2016 guidance

  • Same-store sales ranging from approximately down 2.0 percent to flat at Jack in the Box company restaurants versus a 5.5 percent increase in the year-ago quarter. The low end of the sales guidance range reflects trends through the first four weeks of the third quarter which have been negatively impacted by heavy rainfall and flooding in Houston where 17 percent of Jack in the Box company restaurants are located.
  • Same-store sales ranging from approximately down 1.0 percent to up 1.0 percent at Qdoba company restaurants versus a 6.6 percent increase in the year-ago quarter. Sales trends are tracking slightly below the low end of the guidance range due in part to adverse weather in key markets, but are expected to improve over the balance of the third quarter due to planned promotional activity.

Fiscal year 2016 guidance

  • Same-store sales of approximately flat to up 1.0 percent at Jack in the Box company restaurants.
  • Same-store sales increase of approximately 1.5 to 2.5 percent at Qdoba company restaurants.
  • Commodity deflation of approximately 2 to 3 percent for Jack in the Box and approximately 5 percent at Qdoba.
  • Consolidated restaurant operating margin of approximately 20.0 to 20.5 percent.
  • SG&A as a percentage of revenue of approximately 13.0 to 13.5 percent as compared to 14.4 percent in fiscal 2015.
  • Impairment and other charges as a percentage of revenue of approximately 80 basis points.
  • Approximately 20 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.
  • Approximately 50 to 60 new Qdoba restaurants, of which approximately half are expected to be company locations.
  • Capital expenditures of $100 million to $120 million.
  • Tax rate of approximately 38 percent.
  • Operating earnings per share, which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, ranging from $3.50 to $3.63 in fiscal 2016 as compared to operating earnings per share of $3.00 in fiscal 2015. The estimated benefit of the 53rd week in fiscal 2016 is approximately $0.08 per diluted share.

Conference call

The company will host a conference call for financial analysts and investors on Thursday, May 12, 2016, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box Inc. corporate website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on May 12.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Eats®, a leader in fast-casual dining, with more than 600 restaurants in 47 states, the District of Columbia and Canada. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.

Safe harbor statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the following: the success of new products and marketing initiatives; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company's ability to reduce G&A; the company's ability to execute its refranchising strategy; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, and risks relating to expansion into new markets; litigation risks; food safety incidents or negative publicity impacting the reputations of the company's brands; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)

Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.

  12 Weeks Ended   28 Weeks Ended
April 10,
2016
  April 12,
2015
April 10,
2016
  April 12,
2015
Diluted earnings per share from
continuing operations – GAAP
$ 0.85 $ 0.61 $ 1.78 $ 1.55
Losses (gains) from refranchising   0.08   (0.01 ) 0.07
Operating earnings per share – Non-GAAP $ 0.85   $ 0.69   $ 1.77   $ 1.62

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
       
12 Weeks Ended 28 Weeks Ended
April 10,
2016
    April 12,
2015
April 10,
2016
    April 12,
2015
Revenues:
Company restaurant sales $ 271,792 $ 268,904 $ 625,013 $ 620,800
Franchise rental revenues 52,602 52,215 122,340 121,661
Franchise royalties and other 36,757   37,003   84,621   84,282  
361,151   358,122   831,974   826,743  
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging 82,066 84,032 190,977 197,141
Payroll and employee benefits 76,137 73,073 174,044 168,752
Occupancy and other 59,527   56,468   137,226   131,499  
Total company restaurant costs 217,730 213,573 502,247 497,392
Franchise occupancy expenses 37,408 39,316 89,627 91,734
Franchise support and other costs 3,907 3,743 8,769 8,466
Selling, general and administrative expenses 46,895 52,472 112,767 115,567
Impairment and other charges, net 2,422 2,130 4,079 4,310
Losses (gains) on the sale of company-operated restaurants 3   5,020   (815 ) 4,170  
308,365   316,254   716,674   721,639  
Earnings from operations 52,786 41,868 115,300 105,104
Interest expense, net 6,911   4,220   15,086   9,433  
Earnings from continuing operations and before income taxes 45,875 37,648 100,214 95,671
Income taxes 16,847   14,286   37,289   35,211  
Earnings from continuing operations 29,028 23,362 62,925 60,460
Losses from discontinued operations, net of income tax benefit (346 ) (357 ) (1,022 ) (1,620 )
Net earnings $ 28,682   $ 23,005   $ 61,903   $ 58,840  
 
Net earnings per share - basic:
Earnings from continuing operations $ 0.86 $ 0.62 $ 1.81 $ 1.58
Losses from discontinued operations (0.01 ) (0.01 ) (0.03 ) (0.04 )
Net earnings per share (1) $ 0.85   $ 0.61   $ 1.78   $ 1.53  
Net earnings per share - diluted:
Earnings from continuing operations $ 0.85 $ 0.61 $ 1.78 $ 1.55
Losses from discontinued operations (0.01 ) (0.01 ) (0.03 ) (0.04 )
Net earnings per share (1) $ 0.84   $ 0.60   $ 1.76   $ 1.51  
 
Weighted-average shares outstanding:
Basic 33,656 37,970 34,686 38,353
Diluted 34,177 38,566 35,256 39,039
 
Cash dividends declared per common share $ 0.30 $ 0.20 $ 0.60 $ 0.40

____________________________

(1)   Earnings per share may not add due to rounding.
 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
       
April 10,
2016
September 27,
2015
ASSETS
Current assets:
Cash and cash equivalents $ 8,799 $ 17,743
Accounts and other receivables, net 71,948 47,975
Inventories 7,873 7,376
Prepaid expenses 24,786 16,240
Assets held for sale 19,682 15,516
Other current assets 2,616   3,106  
Total current assets 135,704   107,956  
Property and equipment, at cost 1,576,974 1,563,377
Less accumulated depreciation and amortization (862,552 ) (835,114 )
Property and equipment, net 714,422   728,263  
Intangible assets, net 14,364 14,765
Goodwill 149,012 149,027
Other assets, net 287,962   303,968  
$ 1,301,464   $ 1,303,979  
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt $ 26,272 $ 26,677
Accounts payable 28,095 32,137
Accrued liabilities 165,091   170,575  
Total current liabilities 219,458   229,389  
Long-term debt, net of current maturities 909,388 688,579
Other long-term liabilities 363,235 370,058
Stockholders’ (deficit) equity:
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued
Common stock $0.01 par value, 175,000,000 shares authorized, 81,306,567 and 81,096,156 issued, respectively 813 811
Capital in excess of par value 414,816 402,986
Retained earnings 1,357,178 1,316,119
Accumulated other comprehensive loss (141,991 ) (132,530 )
Treasury stock, at cost, 48,765,738 and 45,314,529 shares, respectively (1,821,433 ) (1,571,433 )
Total stockholders’ (deficit) equity (190,617 ) 15,953  
$ 1,301,464   $ 1,303,979  
 

 
JACK IN THE BOX INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
   
28 Weeks Ended
April 10,
2016
    April 12,
2015
Cash flows from operating activities:
Net earnings $ 61,903 $ 58,840
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 49,331 47,875
Deferred finance cost amortization 1,437 1,155
Excess tax benefits from share-based compensation arrangements (2,451 ) (17,073 )
Deferred income taxes (1,303 ) (2,785 )
Share-based compensation expense 7,901 7,367
Pension and postretirement expense 7,261 10,096
Gains on cash surrender value of company-owned life insurance (2,446 ) (3,635 )
(Gains) losses on the sale of company-operated restaurants (815 ) 4,170
Losses on the disposition of property and equipment 1,646 466
Impairment charges and other 858 2,180
Changes in assets and liabilities:
Accounts and other receivables (25,875 ) (21,841 )
Inventories (497 ) 146
Prepaid expenses and other current assets (2,149 ) 27,181
Accounts payable (1,847 ) (1,459 )
Accrued liabilities (3,464 ) (8,991 )
Pension and postretirement contributions (8,255 ) (8,113 )
Other (782 ) (4,659 )
Cash flows provided by operating activities 80,453   90,920  
Cash flows from investing activities:
Purchases of property and equipment (51,298 ) (32,959 )
Purchases of assets intended for sale and leaseback (5,581 ) (5,355 )
Proceeds from the sale and leaseback of assets 7,748
Proceeds from the sale of company-operated restaurants 1,021 2,630
Collections on notes receivable 2,614 5,314
Acquisition of franchise-operated restaurants 324
Other 14   1,786  
Cash flows used in investing activities (45,158 ) (28,584 )
Cash flows from financing activities:
Borrowings on revolving credit facilities 497,000 264,000
Repayments of borrowings on revolving credit facilities (264,000 ) (160,000 )
Principal repayments on debt (13,065 ) (7,996 )
Dividends paid on common stock (20,765 ) (15,395 )
Proceeds from issuance of common stock 1,432 13,894
Repurchases of common stock (250,000 ) (174,115 )
Excess tax benefits from share-based compensation arrangements 2,451 17,073
Change in book overdraft 2,695    
Cash flows used in financing activities (44,252 ) (62,539 )
Effect of exchange rate changes on cash and cash equivalents 13   11  
Net decrease in cash and cash equivalents (8,944 ) (192 )
Cash and cash equivalents at beginning of period 17,743   10,578  
Cash and cash equivalents at end of period $ 8,799   $ 10,386  
 

JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

The following table presents certain income and expense items included in our condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA
(Unaudited)
       
12 Weeks Ended 28 Weeks Ended
April 10,
2016
    April 12,
2015
April 10,
2016
    April 12,
2015
Revenues:
Company restaurant sales 75.3 % 75.1 % 75.1 % 75.1 %
Franchise rental revenues 14.6 % 14.6 % 14.7 % 14.7 %
Franchise royalties and other 10.2 % 10.3 % 10.2 % 10.2 %
Total revenues 100.0 % 100.0 % 100.0 % 100.0 %
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging (1) 30.2 % 31.2 % 30.6 % 31.8 %
Payroll and employee benefits (1) 28.0 % 27.2 % 27.8 % 27.2 %
Occupancy and other (1) 21.9 % 21.0 % 22.0 % 21.2 %
Total company restaurant costs (1) 80.1 % 79.4 % 80.4 % 80.1 %
Franchise occupancy expenses (2) 71.1 % 75.3 % 73.3 % 75.4 %
Franchise support and other costs (3) 10.6 % 10.1 % 10.4 % 10.0 %
Selling, general and administrative expenses 13.0 % 14.7 % 13.6 % 14.0 %
Impairment and other charges, net 0.7 % 0.6 % 0.5 % 0.5 %
Losses (gains) on the sale of company-operated restaurants % 1.4 % (0.1 )% 0.5 %
Earnings from operations 14.6 % 11.7 % 13.9 % 12.7 %
Income tax rate (4) 36.7 % 37.9 % 37.2 % 36.8 %

____________________________

(1)   As a percentage of company restaurant sales.
(2) As a percentage of franchise rental revenues.
(3) As a percentage of franchise royalties and other.
(4) As a percentage of earnings from continuing operations and before income taxes.
 

The following table presents Jack in the Box and Qdoba company restaurant sales, costs and margin, and restaurant costs and margin as a percentage of the related sales. Percentages may not add due to rounding.

 
SUPPLEMENTAL COMPANY RESTAURANT OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
       
12 Weeks Ended 28 Weeks Ended
April 10, 2016     April 12, 2015 April 10, 2016     April 12, 2015
Jack in the Box:                        
Company restaurant sales $ 179,664 $ 184,992 $ 415,943 $ 426,335
Company restaurant costs:
Food and packaging 54,116 30.1 % 58,495 31.6 % 127,249 30.6 % 137,688 32.3 %
Payroll and employee benefits 51,401 28.6 % 50,885 27.5 % 117,090 28.2 % 117,628 27.6 %
Occupancy and other 36,905   20.5 % 36,051   19.5 % 85,076   20.5 % 84,682   19.9 %
Total company restaurant costs 142,422   79.3 % 145,431   78.6 % 329,415   79.2 % 339,998   79.7 %
Restaurant margin $ 37,242   20.7 % $ 39,561   21.4 % $ 86,528   20.8 % $ 86,337   20.3 %
Qdoba:
Company restaurant sales $ 92,128 $ 83,912 $ 209,070 $ 194,465
Company restaurant costs:
Food and packaging 27,950 30.3 % 25,537 30.4 % 63,728 30.5 % 59,453 30.6 %
Payroll and employee benefits 24,736 26.8 % 22,188 26.4 % 56,954 27.2 % 51,124 26.3 %
Occupancy and other 22,622   24.6 % 20,417   24.3 % 52,150   24.9 % 46,817   24.1 %
Total company restaurant costs 75,308   81.7 % 68,142   81.2 % 172,832   82.7 % 157,394   80.9 %
Restaurant margin $ 16,820   18.3 % $ 15,770   18.8 % $ 36,238   17.3 % $ 37,071   19.1 %
 

The following table presents franchise revenues, costs and margin in each period:

 
SUPPLEMENTAL FRANCHISE OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
       
12 Weeks Ended 28 Weeks Ended
April 10,
2016
    April 12,
2015
April 10,
2016
    April 12,
2015
Franchise rental revenues $ 52,602 $ 52,215 $ 122,340 $ 121,661
 
Royalties 36,122 35,894 82,784 81,723
Franchise fees and other 635   1,109   1,837   2,559  
Franchise royalties and other 36,757   37,003   84,621   84,282  
Total franchise revenues 89,359   89,218   206,961   205,943  
 
Rental expense 30,016 31,707 72,188 73,905
Depreciation and amortization 7,392   7,609   17,439   17,829  
Franchise occupancy expenses 37,408 39,316 89,627 91,734
Franchise support and other costs 3,907   3,743   8,769   8,466  
Total franchise costs 41,315   43,059   98,396   100,200  
Franchise margin $ 48,044   $ 46,159   $ 108,565   $ 105,743  
Franchise margin as a % of franchise revenues 53.8 % 51.7 % 52.5 % 51.3 %
 

The following table provides information related to our operating segments in each period:

 
SUPPLEMENTAL SEGMENT REPORTING INFORMATION
(In thousands)
(Unaudited)
       
12 Weeks Ended 28 Weeks Ended
April 10,
2016
    April 12,
2015
April 10,
2016
    April 12,
2015
Revenues by segment:
Jack in the Box restaurant operations $ 264,062 $ 269,444 $ 611,645 $ 621,395
Qdoba restaurant operations 97,089   88,678   220,329   205,348  
Consolidated revenues $ 361,151   $ 358,122   $ 831,974   $ 826,743  
Earnings from operations by segment:
Jack in the Box restaurant operations $ 63,146 $ 64,313 $ 148,836 $ 145,168
Qdoba restaurant operations 10,623 8,778 19,360 23,460
Shared services and unallocated costs (20,980 ) (26,203 ) (53,711 ) (59,354 )
(Losses) gains on the sale of company-operated restaurants (3 ) (5,020 ) 815   (4,170 )
Consolidated earnings from operations 52,786 41,868 115,300 105,104
Interest expense, net 6,911   4,220   15,086   9,433  
Consolidated earnings from continuing operations and before income taxes $ 45,875   $ 37,648   $ 100,214   $ 95,671  
Total depreciation expense by segment:
Jack in the Box restaurant operations $ 15,059 $ 14,699 $ 35,532 $ 34,314
Qdoba restaurant operations 4,279 4,035 9,867 9,315
Shared services and unallocated costs 1,310   1,612   3,535   3,872  
Consolidated depreciation expense $ 20,648   $ 20,346   $ 48,934   $ 47,501  
 

The following table summarizes the year-to-date changes in the number and mix of Jack in the Box ("JIB") and Qdoba company and franchise restaurants:

 
SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION
(Unaudited)
       
April 10, 2016 April 12, 2015
Company     Franchise     Total Company     Franchise     Total
Jack in the Box:
Beginning of year 413 1,836 2,249 431 1,819 2,250
New 5 5 2 11 13
Refranchised (1 ) 1 (21 ) 21
Acquired from franchisees 1 (1 ) 6 (6 )
Closed   (3 ) (3 ) (6 ) (9 ) (15 )
End of period 413   1,838   2,251   412   1,836   2,248  
% of JIB system 18 % 82 % 100 % 18 % 82 % 100 %
Qdoba:
Beginning of year 322 339 661 310 328 638
New 19 10 29 3 11 14
Closed (3 ) (4 ) (7 ) (3 ) (5 ) (8 )
End of period 338   345   683   310   334   644  
% of Qdoba system 49 % 51 % 100 % 48 % 52 % 100 %
Consolidated:            
Total system 751   2,183   2,934   722   2,170   2,892  
% of consolidated system 26 % 74 % 100 % 25 % 75 % 100 %

Contacts

Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, 858-571-2407
or
Media Contact:
Brian Luscomb, 858-571-2291

Contacts

Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, 858-571-2407
or
Media Contact:
Brian Luscomb, 858-571-2291