010407 Jack in the Box at Low End of Earnings Forecast

New York - Jack in the Box Inc., operator and franchiser of Jack in the Box restaurants, announced that it expected to achieve the lower end of its second quarter earnings forecast of 46-to-50 cents per share primarily due to higher than expected utility costs.

At a Banc of America-hosted presentation to securities analysts, Robert J. Nugent, chairman and CEO of Jack in the Box, added that the company expected to achieve the lower end of its annual earnings forecast of $2.20 to $2.30 per share. Nugent said although the restaurant chain's same-store sales had slightly exceeded forecasts, those sales were not expected to result in increased earnings due primarily to higher utility costs that are anticipated for the remainder of the fiscal year.

Founded in 1951, Jack in the Box is the nation's first major drive-thru hamburger chain. With fiscal-year 2000 systemwide sales of nearly $2 billion, the San Diego-based company operates or franchises more than 1,670 quick-service restaurants in 16 states and has more than 40,000 employees.

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