020538 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, today reported that sales from company restaurants opened more than a year decreased 1.3% for the four-week period ended May 12, compared with a 4.1% increase during the same period a year ago. Through the first eight periods of fiscal 2002, same-store sales increased 0.1% on top of a 4.2% increase last year.

Robert J. Nugent, chairman and CEO, reaffirmed earnings per share estimates at 57 cents for the third quarter and $2.27 for fiscal 2002. "With the strength of our marketing calendar and advertising support in the latter part of the third quarter, and extending into the fourth quarter, we believe our same-store sales will improve," he said. "Additionally, we have several exciting initiatives and new product introductions which we feel will build the Jack in the Box brand, and, more importantly, provide a better experience for our guests."

Nugent said the company yesterday introduced its newest and very popular Jack in the Box antenna-ball promotion in seven major markets. Bearing the likeness of the company's fictional founder, Jack, wearing the batting helmet of local major-league baseball teams, the new antenna ball is available free with the purchase of a Sourdough JackŪ combo meal in San Diego, Los Angeles, Anaheim, Seattle, St. Louis, Houston and Dallas. The new antenna ball, which debuted in April in the San Francisco Bay area, has helped offset some of the sales softness in that market.

Later in the third quarter, the company will also introduce its new Ultimate Berry Shake, made with real ice cream, and will prepare for the fourth-quarter introduction of another new menu item that will be offered systemwide. The company will balance these offerings by re-emphasizing its value menu to continue reaching all segments of its customer base.

As previously stated, Jack in the Box will launch a major product-quality improvement program in the fourth quarter. Nugent said, "This systemwide initiative, which will be supported by an aggressive advertising and promotional campaign, will bring a new look to the chain's primary sandwich product line and will be the most significant quality improvement initiative we've undertaken since rolling out our Assemble-to-Order program in 1999."

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com