The re-imaging program includes a complete redesign of the dining room and common areas. The company has been adding interior finishes like ceramic tile floors, a mix of seating styles ranging from booths and bars to high-top round tables, decorative pendant lighting and graphics, and wall collages. The program also includes music, uniforms, menu boards and packaging, along with new paint schemes, landscaping and other exterior enhancements. The company remains on track to re-image 150 to 200 restaurants in fiscal 2007 and expects to complete the program in four to five years.

The plans for the rest of the year follow a first quarter in which the chain opened 10 company and franchised Jack in the Box restaurants, along with two new Quick Stuff convenience stores, compared with four new restaurants and two Quick Stuff sites opened in the same quarter a year ago. Qdoba opened 29 company and franchised restaurants in the first quarter compared with 23 locations opened in the same quarter a year ago.

Linda Lang, chairman and chief executive officer, pointed out in the conference call that same-store sales at Jack in the Box company restaurants increased 5.6% in the first quarter, with an increase in both average check and transactions, compared with a year-ago increase of 5.5%. System same-store sales at Qdoba Mexican Grill increased 4.1% in the first quarter on top of a 7.9% increase in the first quarter of 2006.

The record earnings for the first quarter ended Jan. 21 totaled $37.4 million, or $1.03 per diluted share, compared with $25.2 million, or 70 cents per diluted share, in the same quarter a year ago. First quarter earnings exceeded the high end of the range previously forecast by the company and also exceeded analysts' forecasts. The company attributed the improvement to higher sales and restaurant operating margins, a lower tax rate and other expenses that were lower than expected, principally the prices paid for beef, chicken, cheese and produce–as well as lower utility costs. Jack in the Box operates 2,088 company and franchised restaurants, including 57 with Quick Stuff convenience stores, and 344 company and franchised Qdoba restaurants.