010638 Jack in the Box Reports Growth

San Diego, CA - Jack in the Box Inc., operator and franchiser of Jack in the Box restaurants, announced a 3.6% year-to-year increase in same-store sales for the recent four-week period, which ended June 10.

“Jack in the Box today leads major hamburger chains in same-store sales improvements, with growth in the last 25 consecutive quarters,” said CEO Robert J. Nugent. “I continue to be pleased with the fundamentals of our business and the long-term outlook for our company. Considerable pressure from the rising cost of utilities face our industry and our nation, and while it's not hard for successful companies to report sales and earnings improvements during normal environments, in more challenging times, they must focus on clear-cut strategies to move their business forward.

“Though Jack in the Box won't earn as much as we anticipated earlier in the year primarily due to rising utility costs, we're still growing because of our commitment to the Jack in the Box brand and delivering a great restaurant experience.

“In addition to rising utility costs, the recent tropical storm in southeastern Texas will negatively impact our third quarter. We now expect our third-quarter earnings to range from 53-to-55 cents per diluted share including a tax rate adjustment that will benefit the quarter by approximately three cents,” he said. “Still, I expect Jack in the Box to achieve our sixth consecutive year of record net earnings, excluding unusual items in prior years.”

Nugent announced a new energy initiative that would reach beyond more typical conservation efforts that are currently underway. “We will investigate how energy impacts every aspect of our business, including how we purchase energy supplies. We will remain a growing company, and a more energy-efficient one.”

On June 4, the company entered its fourth new market in the Southeast, opening its first Jack in the Box restaurant in the Greenville/Spartanburg, S.C., area.

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 1,700 quick-serve restaurants in 16 states, and has more than 41,000 employees.

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