Jack in the Box Earns $25M

The first quarter also marked the expansion of the company's fast-casual JBX Grill concept to Boise, ID and Bakersfield, where nine locations are now operating. It says that early response to the new concept has been positive, and that it plans to a new menu, design changes and other tests for the new format, which it plans to expand with additional locations in 2006, although it did not specify how many new locations.

The chain opened 22 new company and franchised Qdoba Mexican Grill sites in the quarter, compared with 20 in the comparable quarter last year, along with 11 new company and franchised Jack in the Box restaurants, versus 13 in the same quarter of 2004. That brings the total of Jack in the Box and JBX Grill restaurants to 2,014, of which 198 are Qdobas. New stores in the quarter also included three new Quick Stuff convenience stores for a total of 32 in the chain. Robert Nugent, chairman and CEO, noted that the Qdoba Mexican Grill brand posted "same-store sales increasing in the double-digit range on top of a double-digit increase last year."

For the second quarter, Jack in the Box plans to open 12 new company and franchised and JBX Grill restaurants, along with 15 new company and franchised Qdoba restaurants, and 3 new Quick Stuff convenience stores. Its expansion plans will include a focus on expanding its franchising program, which is says will improve operating margins and accelerate cash flows. Along with the expansion plans, the chain said it will begin testing new interior and exterior designs for its restaurants during the quarter. The new designs are intended to create "a more contemporary, upscale atmosphere and promote more in-restaurant dining," it said. Approximately 50 restaurants will test the new designs in fiscal 2005, and assuming results are successful, the company expects to remodel approximately 200 restaurants each year following.