020401 Jack in the Box Reports Same-Store Sales

San Diego, CA - Jack in the Box Inc., operator and franchiser of Jack in the Box restaurants, reported that sales from company restaurants opened more than a year decreased .7% during the sixth period compared with a 4% increase during the same period a year ago. Through the first six periods of fiscal 2002, same-store sales increased .2% on top of a 4.4% increase last year.

“We continue to be affected by certain economic conditions in some of our major markets, such as the Bay Area, Las Vegas and Austin, where sales remain softer than anticipated. As such, we are aggressively refocusing our marketing efforts and strengthening our promotional calendar for the remainder of the fiscal year,” said Chairman and CEO Robert J. Nugent.

“Given our recent trends, we now expect same-store sales for the second quarter to be down approximately .6%, with total restaurant sales at approximately $416 million compared with $420 million in our prior estimate. For the balance of fiscal 2002, we currently expect our same-store sales to increase approximately 1%,” he said.

“During the third quarter, we will advertise a new sandwich product and run a new promotion tie-in with several major league baseball teams. In the fourth quarter, we will roll out a significant new quality-improvement initiative for our sandwich line. And throughout the remainder of the year, we will continue to provide and promote strong value offerings for our customers, who have been particularly affected by this difficult economy,” Nugent added.

The company reported that it still expects to meet its current earnings per share estimates of 44 cents in the second quarter and $2.24 for the fiscal year. “In addition to our new initiatives, we continue to make progress with our new Profit Improvement Program,” Nugent explained.

“We are also continuing to convert a modest number of company restaurants to franchised restaurants. In the second quarter, we expect to convert six of our nearly 1,500 restaurants, three more than in the same quarter last year. As we have indicated previously, we expect franchising to play a greater role in our future growth. We will have more to say about the elements of our overall strategy later this summer. Consistent with our past practice, our approach will be measured and disciplined, focusing on quality and building long-term shareholder value.”

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