021114 Jack in the Box Fourth-Quarter Net Falls

San Diego, CA - Fast-food restaurant operator Jack In The Box Inc. said fourth-quarter net income fell 32%, hurt by previously announced charges to close several restaurants and settle a lawsuit filed by employees. It also warned that soft sales would continue, and cut its earnings outlook for next year.

The San Diego-based chain, which ranks No. 4 among the nation's hamburger chains, reported net income for the quarter ended Sept. 29 of $14 million, or 35 cents a share, compared with $20.7 million, or 52 cents a share, in the year-earlier period. On Sept. 10, the company halved its quarterly earnings forecast to a profit of 34 cents a share, citing softer-than-expected sales and the various charges.

Excluding one-time items totaling $15.7 million, the company posted earnings of $24.4 million, or 61 cents per share. The results beat by a penny Wall Street's consensus forecast of 60 cents a share, excluding charges, which was the average estimate of 10 analysts polled by market research firm Thomson First Call.

Total revenue rose 4.7% to $463.3 million from the year-ago quarter, while restaurant sales increased 3.1% to $424.1 million. Sales at company restaurants open for more than a year -- a key measure known as same-store sales -- fell 2.7% in the quarter, and declined 0.8% for the year, the company said.

Chief Executive Robert Nugent said in a statement he was "disappointed" in the chain's declining sales, which he attributed to the competitive fast-food market and the weak economy.

Looking ahead, Jack In The Box pegged 2003 earnings of $2.42 a diluted share -- down from its earlier estimate of $2.46 a share -- on restaurant sales of about $1.93 billion, versus its earlier projection of $1.95 billion. This year, its full-year earnings forecast is $2.25 a share.

The company also said it expected same-store sales to increase about 1.5% to 2%, down from its earlier estimate of a 3% increase.

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