JACKASS OR JACKPOT?

After the bell, JACK is due to report earnings. It can go either way. On one hand, their murder burger division may follow along the road to riches that SONC traveled on. However, the other road may lead it to a dark Mexican city, the same path traveled by CMG, and get eaten by cartel sewer rats.

To be frank, I have no idea how it will play out. I leave it to the Gods, to either smile upon me or smite me into embarrassment.

I look at JACK in the Box and I wind it up. When the JACK pops out tonight, it will either knife me in the face, or bestow great treasures to me. There will be no middle ground. By tonight I will either be a giant JACKASS or I will be swimming in a Knight Capital-esque JACKPOT.

Separately, the market is flat; but I am getting absolutely poleaxed into submission. My boat had small holes in it earlier, superficial in nature and substance. I opted to ignore them and eat sandwiches instead. Now those small, baby bitch, holes have grown in size and threaten to capsize the HMS Fly Will Fuck Your Shit Up battleship. At the present, despite my 15% cash position, I am down 1.6% for the day, led by asshole action in VHC, TEA, EXK, DECK and CTRP.

I’m having my cock-gobbled off by killer Turkeys. There are zombies everywhere and I don’t have any weapons to defend myself with, only the shards from my own broken bones. If need be, I will snap my arm off and use the shard to impale invading zombies. However, I am hoping to make it out of this fucking rakish city with limbs intact.

Calming down, thinking clearly, I have another play setting up, something that may offer significant upside, soon to be revealed upon confirmation by the celestial overlords.

Until then, I’m all about that JACK-ass lifestyle.

63 Responses to “JACKASS OR JACKPOT?”

  1. Dr. Fly,
    Who in the iBC network has the greatest potential to become a ‘tabbed’ blogger?

  2. Why do you gamble? It’s so un-Fly…

  3. Hi George,

    I wish you would consider reconnecting with Stocktwits. You were much easier to follow on Stocktwits. On the IBC site your twitter comments get lost in the crowd and that’s a shame.

    My 2cents worth.

  4. Your losses in JACK and VHC will be canceled out by wins in TEA and CPST. CALM up…

  5. TLT is cooperating

  6. See you in 20 minutes.

  7. Could be Jack-on or Jackoff.

  8. I bot me some ZZZZZzzzzzzzzzzzzzzzzzzzz’s

  9. I would not buy jack. In and Out Burger, or 5Guys…. but you can’t get those.

  10. Attention All…I just blogged the greatest blog of all blogged content ever. Fly would you please honour {sic} my blog and respond…It is my last one “Damn you John Mayer”…thks

  11. I like the CPST longterm story.

    That said, holding for earnings but not expecting much

  12. JACK OFF

    Jack In The Box misses by $0.09, misses on revs; guides FY12 EPS in-line (26.06 -0.49)
    Reports Q3 (Jun) GAAP earnings of $0.26 per share, $0.09 worse than the Capital IQ Consensus Estimate of $0.35 (also reports non GAAP EPS of $0.38); revenues fell 3.4% year/year to $501.8 mln vs the $509.97 mln consensus. Co issues in-line guidance for FY12, sees GAAP EPS of $1.12-1.22 vs. $1.14 Capital IQ Consensus Estimate. FY12 same-store sales are expected to increase approximately 4.0 to 4.5 percent at Jack in the Box company restaurants. Same-store sales are expected to increase approximately 2.5 to 3.0 percent at Qdoba system restaurants, with company restaurant same-store sales growth expected to be higher than franchise restaurants.

    • Donald Flamenco

      I could’ve told you this by all the Locos Tacos I’ve been eating at Taco Bell

  13. Corporate ProfileFranchisingInvestorsCareersPress RoomCorporate ResponsibilityContact UsJackInTheBox.comQdoba Mexican Grill®
    ——————————————————————————–
    OverviewCorporate GovernanceNews ReleasesStock InformationFinancial ReportsSEC FilingsPresentations & WebcastsAnalyst CoverageCalendar of EventsInvestor FAQInformation Request
    ——————————————————————————–

    << Back
    Jack in the Box Inc. Reports Third Quarter FY 2012 Earnings; Updates Guidance for FY 2012
    SAN DIEGO–(BUSINESS WIRE)–Aug. 8, 2012– Jack in the Box Inc. (NASDAQ: JACK) today reported net earnings of $11.6 million, or $0.26 per diluted share, for the third quarter ended July 8, 2012, compared with net earnings of $18.7 million, or $0.38 per diluted share, for the third quarter of fiscal 2011.

    Gains from refranchising contributed approximately $0.05 per diluted share for the quarter as compared with approximately $0.13 per diluted share in the prior year quarter.

    Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges, were $0.37 per diluted share compared with $0.25 per diluted share in the prior year quarter. A reconciliation of non-GAAP measurements to GAAP results is attached to this release.

    During fiscal 2012, the company has been engaged in a comprehensive review of its organization structure, including evaluating opportunities for outsourcing, restructuring of certain functions and workforce reductions. As a result, restructuring charges of $11.3 million, or approximately $0.16 per diluted share, were recorded during the third quarter which relate primarily to costs resulting from employees electing to participate in the company’s voluntary early retirement program. These charges are included in “impairment and other charges, net” in the accompanying consolidated statement of earnings. The company expects to incur additional restructuring charges during the fourth quarter of 2012 relating to this review.

    Subsequent to the end of the third quarter, the company entered into an agreement to outsource its distribution business, and expects the transition to be completed by the end of the first quarter of fiscal 2013, subject to the anticipated completion of certain closing conditions. The company expects that the distribution business, including exit costs, will be reflected as discontinued operations beginning in the fourth quarter of 2012.

    Increase in same-store sales:

    12 Weeks Ended 12 Weeks Ended 40 Weeks Ended 40 Weeks Ended
    July 8, 2012
    July 10, 2011
    July 8, 2012
    July 10, 2011

    Jack in the Box®:
    Company 3.4% 4.7% 4.9% 2.4%
    Franchise 2.6% 2.4% 3.0% 0.9%
    System 2.8% 3.2% 3.5% 1.4%
    Qdoba®:
    Company 3.3% 5.3% 3.5% 5.4%
    Franchise 0.9% 5.0% 2.5% 6.1%
    System 2.1% 5.1% 3.0% 5.8%

    Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 3.4 percent in the third quarter, driven by a combination of traffic growth and an increase in average check. Four weeks into the fourth quarter, our same-store sales are tracking above our third quarter results. We believe the same-store sales increases we’ve experienced over the last seven quarters reflect the investments we have made to drive sustainable growth by enhancing the entire guest experience at the Jack in the Box brand.

    “Qdoba’s same-store sales in the third quarter increased 3.3 percent for company restaurants and 2.1 percent system-wide. Importantly, company restaurant operating margin at Qdoba improved to 18.7 percent in the third quarter from 16.0 percent in the year-ago quarter,” Lang said.

    Consolidated restaurant operating margin was 16.5 percent of sales in the third quarter of 2012, compared with 12.5 percent of sales in the year-ago quarter.

    Food and packaging costs in the quarter were 160 basis points lower than prior year. The decrease resulted from the benefit of price increases and favorable product mix as well as a greater proportion of Qdoba company restaurants which combined to more than offset commodity inflation. Overall commodity costs were approximately 1 percent higher in the quarter.

    Payroll and employee benefits costs were 100 basis points lower than the year-ago quarter, reflecting leverage from same-store sales increases, the benefits of refranchising Jack in the Box restaurants, and the favorable impact of recent acquisitions of Qdoba franchised restaurants.

    Occupancy and other costs decreased 140 basis points in the third quarter due primarily to leverage from same-store sales increases, the benefits of refranchising Jack in the Box restaurants, the favorable impact of recent acquisitions of Qdoba franchised restaurants, and a reduction of approximately 50 basis points due to costs associated with the rollout of new menu boards and uniforms during the prior year quarter at Jack in the Box restaurants. These decreases were partially offset by higher debit card fees and higher depreciation expense related to the Jack in the Box re-image program.

    SG&A expense for the third quarter increased by $1.2 million and was 10.5 percent of revenues as compared to 9.9 percent in the prior year quarter. The increase in SG&A was attributable primarily to higher incentive compensation accruals, increased G&A related to Qdoba growth, higher pension and pre-opening costs which were partially offset by lower advertising and overhead costs resulting from the company’s refranchising strategy. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans had no impact on SG&A in either quarter.

    Gains on the sale of 18 company-operated Jack in the Box restaurants to franchisees totaled $3.7 million in the third quarter, or approximately $0.05 per diluted share, compared with $10.2 million, or approximately $0.13 per diluted share in the year-ago quarter from the sale of 112 restaurants. For the third quarter of 2012, average gains were $207,000 per restaurant, and total proceeds related to refranchising were $7.3 million, or an average of $405,000 per restaurant.

    Impairment and other charges increased in the quarter to $15.2 million from $2.1 million a year ago. This increase related primarily to restructuring charges of $11.3 million discussed above and an increase in costs associated with closed restaurants.

    The company acquired 9 franchised Qdoba restaurants in one market during the third quarter of 2012 for $9.1 million. This acquisition is expected to be accretive to fiscal 2012 restaurant operating margin and earnings per share.

    In November 2011, the company’s board of directors approved a new $100 million stock-buyback program that expires in November 2013. The company did not repurchase any shares of its common stock during the third quarter, and as of July 8, 2012, $100 million remains available under this authorization.

    Restaurant openings

    Seven new Jack in the Box restaurants opened in the third quarter, including 2 franchised locations, compared with 5 new restaurants opened system-wide during the same quarter last year, of which 1 was franchised.

    In the third quarter, 11 Qdoba restaurants opened, including 5 franchised locations, versus 17 new restaurants in the year-ago quarter, of which 11 were franchised.

    At July 8, 2012, the company’s system total comprised 2,247 Jack in the Box restaurants, including 1,661 franchised locations, and 614 Qdoba restaurants, including 310 franchised locations.

    Guidance

    The following guidance and underlying assumptions reflect the company’s current expectations for the fourth quarter and fiscal year ending September 30, 2012. Fiscal 2012 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.

    Fourth quarter fiscal year 2012 guidance

    •Same-store sales are expected to increase approximately 2 to 3 percent at Jack in the Box company restaurants versus a 5.8 percent increase in the year-ago quarter.
    •Same-store sales are expected to increase approximately 1 to 2 percent at Qdoba system restaurants versus a 3.7 percent increase in the year-ago quarter, with company restaurant same-store sales growth expected to be higher than franchise restaurants.
    Fiscal year 2012 guidance

    •Same-store sales are expected to increase approximately 4.0 to 4.5 percent at Jack in the Box company restaurants.
    •Same-store sales are expected to increase approximately 2.5 to 3.0 percent at Qdoba system restaurants, with company restaurant same-store sales growth expected to be higher than franchise restaurants.
    •Overall commodity costs are now expected to increase by approximately 3.5 percent for the full year.
    •Restaurant operating margin for the full year is expected to be approximately 15.0 percent, depending on same-store sales and commodity inflation.
    •Approximately 35 new Jack in the Box restaurants are expected to open, including approximately 20 company locations.
    •Approximately 60 new Qdoba restaurants are expected to open, of which approximately 25 to 30 are expected to be company locations.
    •The company expects to sell approximately 100 Jack in the Box restaurants to franchisees with expected gains of approximately $25 million and total proceeds of approximately $45 million resulting from the sales.
    •Capital expenditures are expected to be $80 to $90 million.
    •SG&A is expected to be in the mid-10 percent range.
    •Impairment and other charges are expected to be approximately 70 basis points, excluding restructuring charges.
    •The tax rate is expected to be approximately 35 to 36 percent.
    •Diluted earnings per share are expected to range from $1.48 to $1.58, excluding restructuring charges. Operating earnings per share, which the company defines as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges, are expected to range from $1.12 to $1.22 per diluted share, as compared to the company’s previous guidance of $1.02 to $1.17 (excluding $0.02 of restructuring charges recorded in the second quarter). Gains from refranchising are expected to contribute approximately $0.36 to diluted earnings per share, as compared to $0.78 in fiscal 2011.
    •Diluted earnings per share includes approximately $0.10 to $0.11 of re-image incentive payments to Jack in the Box franchisees in fiscal 2012 to complete the re-image program as compared to $0.11 in fiscal 2011.
    Conference call

    The company will host a conference call for financial analysts and investors on Thursday, August 9, 2012, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on August 9.

    About Jack in the Box Inc.

    Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 20 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 600 restaurants in 42 states and the District of Columbia. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit http://www.jackinthebox.com or http://www.qdoba.com.

    Safe harbor statement

    This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the success of new products and marketing initiatives, the impact of competition, unemployment, trends in consumer spending patterns, commodity costs, the timing of sales of Jack in the Box restaurants to franchisees, and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://www.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

    JACK IN THE BOX INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
    (Unaudited)

    Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers, but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

    Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share:

    12 Weeks Ended 40 Weeks Ended
    July 8, July 10, July 8, July 10,
    2012 2011 2012 2011
    Diluted earnings per share – GAAP $0.26 $0.38 $1.01 $1.13
    Plus: Restructuring charges 0.16 ? 0.19 ?
    Less: Gains from refranchising (0.05) (0.13) (0.28) (0.49)
    Operating earnings per share – Non-GAAP $0.37 $0.25 $0.92 $0.64

    JACK IN THE BOX INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

    (In thousands, except per share data)

    (Unaudited)

    Quarter Year-to-Date
    July 8, July 10, July 8, July 10,
    2012 2011 2012 2011

    Revenues:
    Company restaurant sales $ 285,376 $ 326,033 $ 940,281 $ 1,084,182
    Distribution sales 138,839 125,704 473,779 393,753
    Franchise revenues 77,605 67,542 247,105 211,194
    501,820 519,279 1,661,165 1,689,129
    Operating costs and expenses, net:
    Company restaurant costs:
    Food and packaging 92,155 110,596 309,172 359,725
    Payroll and employee benefits 81,806 96,723 274,875 329,235
    Occupancy and other 64,316 78,100 214,751 259,896
    Total company restaurant costs 238,277 285,419 798,798 948,856
    Distribution costs 138,839 126,063 473,779 395,242
    Franchise costs 38,604 31,589 126,459 101,268
    Selling, general and administrative expenses 52,566 51,344 172,780 170,854
    Impairment and other charges, net 15,181 2,101 24,606 10,191
    Gains on the sale of company-operated restaurants (3,733 ) (10,190 ) (18,933 ) (38,940 )
    479,734 486,326 1,577,489 1,587,471

    Earnings from operations 22,086 32,953 83,676 101,658

    Interest expense, net 4,371 4,016 14,962 12,573

    Earnings before income taxes 17,715 28,937 68,714 89,085

    Income taxes 6,123 10,192 23,540 31,138

    Net earnings $ 11,592 $ 18,745 $ 45,174 $ 57,947

    Net earnings per share:
    Basic $ 0.26 $ 0.39 $ 1.03 $ 1.15
    Diluted $ 0.26 $ 0.38 $ 1.01 $ 1.13

    Weighted-average shares outstanding:
    Basic 44,156 48,498 43,975 50,435
    Diluted 45,153 49,252 44,892 51,225

    JACK IN THE BOX INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (Dollars in thousands, except per share data)

    (Unaudited)

    July 8, October 2,
    2012 2011

    ASSETS
    Current assets:
    Cash and cash equivalents $ 10,815 $ 11,424
    Accounts and other receivables, net 84,899 86,213
    Inventories 36,997 38,931
    Prepaid expenses 32,175 18,737
    Deferred income taxes 44,166 45,520
    Assets held for sale and leaseback 62,400 51,793
    Other current assets 517 1,793
    Total current assets 271,969 254,411

    Property and equipment, at cost 1,532,655 1,518,799
    Less accumulated depreciation and amortization (707,105 ) (663,373 )
    Property and equipment, net 825,550 855,426
    Goodwill 140,470 105,872
    Other assets, net 241,099 216,613
    $ 1,479,088 $ 1,432,322

    LIABILITIES AND STOCKHOLDERS’ EQUITY

    Current liabilities:
    Current maturities of long-term debt $ 21,400 $ 21,148
    Accounts payable 67,541 94,348
    Accrued liabilities 176,766 167,487
    Total current liabilities 265,707 282,983

    Long-term debt, net of current maturities 430,441 447,350

    Other long-term liabilities 340,376 290,723

    Deferred income taxes 5,310 5,310

    Stockholders’ equity:
    Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued – –
    Common stock $0.01 par value, 175,000,000 shares authorized, 75,600,656 and 74,992,487 issued, respectively
    756 750
    Capital in excess of par value 215,539 202,684
    Retained earnings 1,108,194 1,063,020
    Accumulated other comprehensive loss, net (115,776 ) (95,940 )
    Treasury stock, at cost, 31,072,631 and 30,746,099 shares, respectively (771,459 ) (764,558 )
    Total stockholders’ equity 437,254 405,956
    $ 1,479,088 $ 1,432,322

    JACK IN THE BOX INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Dollars in thousands)

    (Unaudited)

    Year-to-Date
    July 8, July 10,
    2012 2011

    Cash flows from operating activities:
    Net earnings $ 45,174 $ 57,947
    Adjustments to reconcile net earnings to net cash provided by operating activities:
    Depreciation and amortization 74,210 74,342
    Deferred finance cost amortization 2,068 1,954
    Deferred income taxes (2,314 ) (7,771 )
    Share-based compensation expense 5,001 6,755
    Pension and postretirement expense 26,853 18,343
    Gains on cash surrender value of company-owned life insurance (8,781 ) (8,287 )
    Gains on the sale of company-operated restaurants (18,933 ) (38,940 )
    Gains on the acquisition of franchised-operated restaurants – (426 )
    Losses on the disposition of property and equipment, net 3,762 6,084
    Impairment charges 2,765 1,684
    Changes in assets and liabilities, excluding acquisitions and dispositions:
    Accounts and other receivables (2,891 ) (14,198 )
    Inventories 1,934 (754 )
    Prepaid expenses and other current assets (12,346 ) 2,453
    Accounts payable (5,395 ) (3,071 )
    Accrued liabilities 13,210 4,950
    Pension and postretirement contributions (9,998 ) (3,522 )
    Other (2,737 ) (5,527 )
    Cash flows provided by operating activities 111,582 92,016

    Cash flows from investing activities:
    Purchases of property and equipment (56,205 ) (99,485 )
    Purchases of assets held for sale and leaseback (31,565 ) (17,442 )
    Proceeds from the sale of assets held for sale and leaseback 18,457 25,753
    Proceeds from the sale of company-operated restaurants 29,253 76,915
    Collections on notes receivable 10,198 20,014
    Disbursements for loans to franchisees (3,976 ) (7,582 )
    Acquisitions of franchise-operated restaurants (48,262 ) (22,077 )
    Other 315 2,170
    Cash flows used in investing activities (81,785 ) (21,734 )

    Cash flows from financing activities:
    Borrowings on revolving credit facility 444,380 543,000
    Repayments of borrowings on revolving credit facility (445,104 ) (453,000 )
    Principal repayments on debt (15,933 ) (8,549 )
    Debt issuance costs (741 ) (989 )
    Proceeds from issuance of common stock 7,096 4,260
    Repurchases of common stock (6,901 ) (138,050 )
    Excess tax benefits from share-based compensation arrangements 525 883
    Change in book overdraft (13,728 ) (16,418 )
    Cash flows used in financing activities (30,406 ) (68,863 )

    Net increase (decrease) in cash and cash equivalents (609 ) 1,419
    Cash and cash equivalents at beginning of period 11,424 10,607
    Cash and cash equivalents at end of period $ 10,815 $ 12,026

    JACK IN THE BOX INC. AND SUBSIDIARIES

    SUPPLEMENTAL INFORMATION

    (Unaudited)

    The following table presents certain income and expense items included in the company’s condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

    Quarter Year-to-Date
    July 8, July 10, July 8, July 10,
    2012 2011 2012 2011
    Revenues:
    Company restaurant sales 56.9 % 62.8 % 56.6 % 64.2 %
    Distribution sales 27.7 % 24.2 % 28.5 % 23.3 %
    Franchise revenues 15.5 % 13.0 % 14.9 % 12.5 %
    Total revenues 100.0 % 100.0 % 100.0 % 100.0 %

    Operating costs and expenses, net:
    Company restaurant costs:
    Food and packaging (1) 32.3 % 33.9 % 32.9 % 33.2 %
    Payroll and employee benefits (1) 28.7 % 29.7 % 29.2 % 30.4 %
    Occupancy and other (1) 22.5 % 24.0 % 22.8 % 24.0 %
    Total company restaurant costs (1) 83.5 % 87.5 % 85.0 % 87.5 %
    Distribution costs (1) 100.0 % 100.3 % 100.0 % 100.4 %
    Franchise costs (1) 49.7 % 46.8 % 51.2 % 48.0 %
    Selling, general and administrative expenses 10.5 % 9.9 % 10.4 % 10.1 %
    Impairment and other charges, net 3.0 % 0.4 % 1.5 % 0.6 %
    Gains on the sale of company-operated restaurants (0.7 %) (2.0 %) (1.1 %) (2.3 %)
    Earnings from operations 4.4 % 6.3 % 5.0 % 6.0 %

    Income tax rate (2) 34.6 % 35.2 % 34.3 % 35.0 %

    (1) As a percentage of the related sales and/or revenues.
    (2) As a percentage of earnings before income taxes.

    The following table summarizes the year-to-date changes in the number of Jack in the Box and Qdoba company and franchise restaurants:

    July 8, 2012 July 10, 2011
    Company Franchise Total Company Franchise Total
    Jack in the Box:
    Beginning of year 629 1,592 2,221 956 1,250 2,206
    New 14 16 30 11 10 21
    Refranchised (55 ) 55 – (226 ) 226 –
    Closed (2 ) (2 ) (4 ) (6 ) (1 ) (7 )
    End of period 586 1,661 2,247 735 1,485 2,220
    % of system 26 % 74 % 100 % 33 % 67 % 100 %
    Qdoba:
    Beginning of year 245 338 583 188 337 525
    New 14 20 34 17 30 47
    Acquired from franchisees 45 (45 ) – 24 (24 ) –
    Closed – (3 ) (3 ) – (8 ) (8 )
    End of period 304 310 614 229 335 564
    % of system 50 % 50 % 100 % 41 % 59 % 100 %

    Consolidated:
    Total system 890 1,971 2,861 964 1,820 2,784
    % of system 31 % 69 % 100 % 35 % 65 % 100 %

    Source: Jack in the Box Inc.
    Jack in the Box Inc.
    Investor Contact:
    Carol DiRaimo, 858-571-2407
    or
    Media Contact:
    Brian Luscomb, 858-571-2291

    • Was that good or bad?

    • Seriously? Was that necessary?

    • Use a fucking link douchebag.

    • Just post a fuckin’ LINK, asshole. We don’t need the whole bible here.

    • Apologies and a big Fuck ya all to ya bunch of whiny yallops… didn’t mean to put all this shinola up but during the cut and paste on my iPhone, that fucked up auto-drop down widget for yields and futures fuck everything up and i guess i hit the post button… and we can’t edit or delete after either…

  14. What about the e coli write offs?

  15. Does anyone else think the auto drop down of futures/yields/etc widget is annoying?

    I like the rolling headline feature but do not like the mouseover auto drop. I think a clickable arrow or something on the top left to make it drop down would be less browser intrusive.

    Fly what do you think?

  16. Nefarious Rapscallion

    Fly…bubula….you know you got it all…now stop “jjackin around” and put your ass back into YELP for fucksakes Fly

  17. Nefarious Rapscallion

    And I am not pumping it as I don’t own just returning the favor for RAX

  18. Started day with $SODA ,sold and made some coin. Feeling Cocky….Then $MCD…$VHC…$JACK.To quote that great trader Jerome “Curly” Howard.”were not stupid…were morons”.

  19. Sur Platonic Platueu Du Tecnocrats, B.R.A., D.J.D. upon Rookness.

    Is anyone round these hallowed halls knowledgeable enough to inform the Blind Man as to the causes that creates after hour spikes such as $JACK (NO “I’m lovin’ it”)?

    Obviously disclosure of accountant’s earnings is the issue, but is anyone here an after hours market expert? (this line of inquiry is hideous – I LIKE bebes – thank you).

    Merci.

  20. After hours is not a real market. Just a few traders pushing a stock around randomly, buying a bit and selling a bit. Unless the percentage gains or losses are huge, it is meaningless. You find out the next day what the real market really thinks of a stock.

  21. If JACK remains green throughout tomorrow, that might mean it’s one of those stocks with bad earnings, after which traders believe the worst news is in, and the company and stock are at a bottom, and it’s all up from here.

  22. Seriously? You are a day or two from calling a top…..go back to 60% cash. Just sayin

  23. Dffpa, who knows?

    Maybe Fly’s “another play setting up, something that may offer significant upside, soon to be revealed ” involves shorting a top, for all we know.

    Whatever the new play may be, I await it with bated breath.

  24. Never short a boring market and gosh darn it if this isn’t exactly that.

    SNOOZE-FEST

    Tiny melt-ups day after day in “anticipation” or in “hopes of” usually lead to a nice fat kick to the nuts when reality sets back in.

    Be safe my trading friends.

  25. VHC GOING TO MAKE New LOWS

  26. If it does who cares I’m not short or long on this non sense , just telling you that your balls are going to get punched in the next week or so .

  27. http://news.yahoo.com/mars-crater-where-rover-landed-looks-earth-201913389–finance.html
    Rover “landing” filmed in Mojave desert, tax payer dollars wired to all the biggest campaign supporters

  28. Hilarious post.

  29. where is FLY this am???

  30. I’m betting Fly caught a nice trade in Jack and didn’t wait for extra cheese and double fries. Got Jack on before Jack off.

  31. DICK LOVER

    One more DMND short pump and you are exiled.

  32. Nice try loser

  33. I ask that you please toss this fucker into the hoosegow without waiting for another one of his retarded DMND short calls. The stock is up over 8% since he first made this call and he hasn’t shut up about it. You are giving him one more chance as a gentleman would but you’ve already been acting like a gentleman of the highest order long enough by putting up with his shit for as long as you have.

  34. Make that up 12% now lol

Comments are closed.
2014 iBankCoin Investors Conference
Previous Posts by The Fly

JACKASS OR JACKPOT?

After the bell, JACK is due to report earnings. It can go either way. On one hand, their murder burger division may follow along the road to riches that SONC traveled on. However, the other road may lead it to a dark Mexican city, the same path traveled by CMG, and get eaten by cartel sewer rats.

To be frank, I have no idea how it will play out. I leave it to the Gods, to either smile upon me or smite me into embarrassment.

I look at JACK in the Box and I wind it up. When the JACK pops out tonight, it will either knife me in the face, or bestow great treasures to me. There will be no middle ground. By tonight I will either be a giant JACKASS or I will be swimming in a Knight Capital-esque JACKPOT.

Separately, the market is flat; but I am getting absolutely poleaxed into submission. My boat had small holes in it earlier, superficial in nature and substance. I opted to ignore them and eat sandwiches instead. Now those small, baby bitch, holes have grown in size and threaten to capsize the HMS Fly Will Fuck Your Shit Up battleship. At the present, despite my 15% cash position, I am down 1.6% for the day, led by asshole action in VHC, TEA, EXK, DECK and CTRP.

I’m having my cock-gobbled off by killer Turkeys. There are zombies everywhere and I don’t have any weapons to defend myself with, only the shards from my own broken bones. If need be, I will snap my arm off and use the shard to impale invading zombies. However, I am hoping to make it out of this fucking rakish city with limbs intact.

Calming down, thinking clearly, I have another play setting up, something that may offer significant upside, soon to be revealed upon confirmation by the celestial overlords.

Until then, I’m all about that JACK-ass lifestyle.

63 Responses to “JACKASS OR JACKPOT?”

  1. Dr. Fly,
    Who in the iBC network has the greatest potential to become a ‘tabbed’ blogger?

  2. Why do you gamble? It’s so un-Fly…

  3. Hi George,

    I wish you would consider reconnecting with Stocktwits. You were much easier to follow on Stocktwits. On the IBC site your twitter comments get lost in the crowd and that’s a shame.

    My 2cents worth.

  4. Your losses in JACK and VHC will be canceled out by wins in TEA and CPST. CALM up…

  5. TLT is cooperating

  6. See you in 20 minutes.

  7. Could be Jack-on or Jackoff.

  8. I bot me some ZZZZZzzzzzzzzzzzzzzzzzzzz’s

  9. I would not buy jack. In and Out Burger, or 5Guys…. but you can’t get those.

  10. Attention All…I just blogged the greatest blog of all blogged content ever. Fly would you please honour {sic} my blog and respond…It is my last one “Damn you John Mayer”…thks

  11. I like the CPST longterm story.

    That said, holding for earnings but not expecting much

  12. JACK OFF

    Jack In The Box misses by $0.09, misses on revs; guides FY12 EPS in-line (26.06 -0.49)
    Reports Q3 (Jun) GAAP earnings of $0.26 per share, $0.09 worse than the Capital IQ Consensus Estimate of $0.35 (also reports non GAAP EPS of $0.38); revenues fell 3.4% year/year to $501.8 mln vs the $509.97 mln consensus. Co issues in-line guidance for FY12, sees GAAP EPS of $1.12-1.22 vs. $1.14 Capital IQ Consensus Estimate. FY12 same-store sales are expected to increase approximately 4.0 to 4.5 percent at Jack in the Box company restaurants. Same-store sales are expected to increase approximately 2.5 to 3.0 percent at Qdoba system restaurants, with company restaurant same-store sales growth expected to be higher than franchise restaurants.

    • Donald Flamenco

      I could’ve told you this by all the Locos Tacos I’ve been eating at Taco Bell

  13. Corporate ProfileFranchisingInvestorsCareersPress RoomCorporate ResponsibilityContact UsJackInTheBox.comQdoba Mexican Grill®
    ——————————————————————————–
    OverviewCorporate GovernanceNews ReleasesStock InformationFinancial ReportsSEC FilingsPresentations & WebcastsAnalyst CoverageCalendar of EventsInvestor FAQInformation Request
    ——————————————————————————–

    << Back
    Jack in the Box Inc. Reports Third Quarter FY 2012 Earnings; Updates Guidance for FY 2012
    SAN DIEGO–(BUSINESS WIRE)–Aug. 8, 2012– Jack in the Box Inc. (NASDAQ: JACK) today reported net earnings of $11.6 million, or $0.26 per diluted share, for the third quarter ended July 8, 2012, compared with net earnings of $18.7 million, or $0.38 per diluted share, for the third quarter of fiscal 2011.

    Gains from refranchising contributed approximately $0.05 per diluted share for the quarter as compared with approximately $0.13 per diluted share in the prior year quarter.

    Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges, were $0.37 per diluted share compared with $0.25 per diluted share in the prior year quarter. A reconciliation of non-GAAP measurements to GAAP results is attached to this release.

    During fiscal 2012, the company has been engaged in a comprehensive review of its organization structure, including evaluating opportunities for outsourcing, restructuring of certain functions and workforce reductions. As a result, restructuring charges of $11.3 million, or approximately $0.16 per diluted share, were recorded during the third quarter which relate primarily to costs resulting from employees electing to participate in the company’s voluntary early retirement program. These charges are included in “impairment and other charges, net” in the accompanying consolidated statement of earnings. The company expects to incur additional restructuring charges during the fourth quarter of 2012 relating to this review.

    Subsequent to the end of the third quarter, the company entered into an agreement to outsource its distribution business, and expects the transition to be completed by the end of the first quarter of fiscal 2013, subject to the anticipated completion of certain closing conditions. The company expects that the distribution business, including exit costs, will be reflected as discontinued operations beginning in the fourth quarter of 2012.

    Increase in same-store sales:

    12 Weeks Ended 12 Weeks Ended 40 Weeks Ended 40 Weeks Ended
    July 8, 2012
    July 10, 2011
    July 8, 2012
    July 10, 2011

    Jack in the Box®:
    Company 3.4% 4.7% 4.9% 2.4%
    Franchise 2.6% 2.4% 3.0% 0.9%
    System 2.8% 3.2% 3.5% 1.4%
    Qdoba®:
    Company 3.3% 5.3% 3.5% 5.4%
    Franchise 0.9% 5.0% 2.5% 6.1%
    System 2.1% 5.1% 3.0% 5.8%

    Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 3.4 percent in the third quarter, driven by a combination of traffic growth and an increase in average check. Four weeks into the fourth quarter, our same-store sales are tracking above our third quarter results. We believe the same-store sales increases we’ve experienced over the last seven quarters reflect the investments we have made to drive sustainable growth by enhancing the entire guest experience at the Jack in the Box brand.

    “Qdoba’s same-store sales in the third quarter increased 3.3 percent for company restaurants and 2.1 percent system-wide. Importantly, company restaurant operating margin at Qdoba improved to 18.7 percent in the third quarter from 16.0 percent in the year-ago quarter,” Lang said.

    Consolidated restaurant operating margin was 16.5 percent of sales in the third quarter of 2012, compared with 12.5 percent of sales in the year-ago quarter.

    Food and packaging costs in the quarter were 160 basis points lower than prior year. The decrease resulted from the benefit of price increases and favorable product mix as well as a greater proportion of Qdoba company restaurants which combined to more than offset commodity inflation. Overall commodity costs were approximately 1 percent higher in the quarter.

    Payroll and employee benefits costs were 100 basis points lower than the year-ago quarter, reflecting leverage from same-store sales increases, the benefits of refranchising Jack in the Box restaurants, and the favorable impact of recent acquisitions of Qdoba franchised restaurants.

    Occupancy and other costs decreased 140 basis points in the third quarter due primarily to leverage from same-store sales increases, the benefits of refranchising Jack in the Box restaurants, the favorable impact of recent acquisitions of Qdoba franchised restaurants, and a reduction of approximately 50 basis points due to costs associated with the rollout of new menu boards and uniforms during the prior year quarter at Jack in the Box restaurants. These decreases were partially offset by higher debit card fees and higher depreciation expense related to the Jack in the Box re-image program.

    SG&A expense for the third quarter increased by $1.2 million and was 10.5 percent of revenues as compared to 9.9 percent in the prior year quarter. The increase in SG&A was attributable primarily to higher incentive compensation accruals, increased G&A related to Qdoba growth, higher pension and pre-opening costs which were partially offset by lower advertising and overhead costs resulting from the company’s refranchising strategy. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans had no impact on SG&A in either quarter.

    Gains on the sale of 18 company-operated Jack in the Box restaurants to franchisees totaled $3.7 million in the third quarter, or approximately $0.05 per diluted share, compared with $10.2 million, or approximately $0.13 per diluted share in the year-ago quarter from the sale of 112 restaurants. For the third quarter of 2012, average gains were $207,000 per restaurant, and total proceeds related to refranchising were $7.3 million, or an average of $405,000 per restaurant.

    Impairment and other charges increased in the quarter to $15.2 million from $2.1 million a year ago. This increase related primarily to restructuring charges of $11.3 million discussed above and an increase in costs associated with closed restaurants.

    The company acquired 9 franchised Qdoba restaurants in one market during the third quarter of 2012 for $9.1 million. This acquisition is expected to be accretive to fiscal 2012 restaurant operating margin and earnings per share.

    In November 2011, the company’s board of directors approved a new $100 million stock-buyback program that expires in November 2013. The company did not repurchase any shares of its common stock during the third quarter, and as of July 8, 2012, $100 million remains available under this authorization.

    Restaurant openings

    Seven new Jack in the Box restaurants opened in the third quarter, including 2 franchised locations, compared with 5 new restaurants opened system-wide during the same quarter last year, of which 1 was franchised.

    In the third quarter, 11 Qdoba restaurants opened, including 5 franchised locations, versus 17 new restaurants in the year-ago quarter, of which 11 were franchised.

    At July 8, 2012, the company’s system total comprised 2,247 Jack in the Box restaurants, including 1,661 franchised locations, and 614 Qdoba restaurants, including 310 franchised locations.

    Guidance

    The following guidance and underlying assumptions reflect the company’s current expectations for the fourth quarter and fiscal year ending September 30, 2012. Fiscal 2012 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.

    Fourth quarter fiscal year 2012 guidance

    •Same-store sales are expected to increase approximately 2 to 3 percent at Jack in the Box company restaurants versus a 5.8 percent increase in the year-ago quarter.
    •Same-store sales are expected to increase approximately 1 to 2 percent at Qdoba system restaurants versus a 3.7 percent increase in the year-ago quarter, with company restaurant same-store sales growth expected to be higher than franchise restaurants.
    Fiscal year 2012 guidance

    •Same-store sales are expected to increase approximately 4.0 to 4.5 percent at Jack in the Box company restaurants.
    •Same-store sales are expected to increase approximately 2.5 to 3.0 percent at Qdoba system restaurants, with company restaurant same-store sales growth expected to be higher than franchise restaurants.
    •Overall commodity costs are now expected to increase by approximately 3.5 percent for the full year.
    •Restaurant operating margin for the full year is expected to be approximately 15.0 percent, depending on same-store sales and commodity inflation.
    •Approximately 35 new Jack in the Box restaurants are expected to open, including approximately 20 company locations.
    •Approximately 60 new Qdoba restaurants are expected to open, of which approximately 25 to 30 are expected to be company locations.
    •The company expects to sell approximately 100 Jack in the Box restaurants to franchisees with expected gains of approximately $25 million and total proceeds of approximately $45 million resulting from the sales.
    •Capital expenditures are expected to be $80 to $90 million.
    •SG&A is expected to be in the mid-10 percent range.
    •Impairment and other charges are expected to be approximately 70 basis points, excluding restructuring charges.
    •The tax rate is expected to be approximately 35 to 36 percent.
    •Diluted earnings per share are expected to range from $1.48 to $1.58, excluding restructuring charges. Operating earnings per share, which the company defines as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges, are expected to range from $1.12 to $1.22 per diluted share, as compared to the company’s previous guidance of $1.02 to $1.17 (excluding $0.02 of restructuring charges recorded in the second quarter). Gains from refranchising are expected to contribute approximately $0.36 to diluted earnings per share, as compared to $0.78 in fiscal 2011.
    •Diluted earnings per share includes approximately $0.10 to $0.11 of re-image incentive payments to Jack in the Box franchisees in fiscal 2012 to complete the re-image program as compared to $0.11 in fiscal 2011.
    Conference call

    The company will host a conference call for financial analysts and investors on Thursday, August 9, 2012, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on August 9.

    About Jack in the Box Inc.

    Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 20 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 600 restaurants in 42 states and the District of Columbia. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit http://www.jackinthebox.com or http://www.qdoba.com.

    Safe harbor statement

    This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the success of new products and marketing initiatives, the impact of competition, unemployment, trends in consumer spending patterns, commodity costs, the timing of sales of Jack in the Box restaurants to franchisees, and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://www.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

    JACK IN THE BOX INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
    (Unaudited)

    Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers, but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

    Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share:

    12 Weeks Ended 40 Weeks Ended
    July 8, July 10, July 8, July 10,
    2012 2011 2012 2011
    Diluted earnings per share – GAAP $0.26 $0.38 $1.01 $1.13
    Plus: Restructuring charges 0.16 ? 0.19 ?
    Less: Gains from refranchising (0.05) (0.13) (0.28) (0.49)
    Operating earnings per share – Non-GAAP $0.37 $0.25 $0.92 $0.64

    JACK IN THE BOX INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

    (In thousands, except per share data)

    (Unaudited)

    Quarter Year-to-Date
    July 8, July 10, July 8, July 10,
    2012 2011 2012 2011

    Revenues:
    Company restaurant sales $ 285,376 $ 326,033 $ 940,281 $ 1,084,182
    Distribution sales 138,839 125,704 473,779 393,753
    Franchise revenues 77,605 67,542 247,105 211,194
    501,820 519,279 1,661,165 1,689,129
    Operating costs and expenses, net:
    Company restaurant costs:
    Food and packaging 92,155 110,596 309,172 359,725
    Payroll and employee benefits 81,806 96,723 274,875 329,235
    Occupancy and other 64,316 78,100 214,751 259,896
    Total company restaurant costs 238,277 285,419 798,798 948,856
    Distribution costs 138,839 126,063 473,779 395,242
    Franchise costs 38,604 31,589 126,459 101,268
    Selling, general and administrative expenses 52,566 51,344 172,780 170,854
    Impairment and other charges, net 15,181 2,101 24,606 10,191
    Gains on the sale of company-operated restaurants (3,733 ) (10,190 ) (18,933 ) (38,940 )
    479,734 486,326 1,577,489 1,587,471

    Earnings from operations 22,086 32,953 83,676 101,658

    Interest expense, net 4,371 4,016 14,962 12,573

    Earnings before income taxes 17,715 28,937 68,714 89,085

    Income taxes 6,123 10,192 23,540 31,138

    Net earnings $ 11,592 $ 18,745 $ 45,174 $ 57,947

    Net earnings per share:
    Basic $ 0.26 $ 0.39 $ 1.03 $ 1.15
    Diluted $ 0.26 $ 0.38 $ 1.01 $ 1.13

    Weighted-average shares outstanding:
    Basic 44,156 48,498 43,975 50,435
    Diluted 45,153 49,252 44,892 51,225

    JACK IN THE BOX INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (Dollars in thousands, except per share data)

    (Unaudited)

    July 8, October 2,
    2012 2011

    ASSETS
    Current assets:
    Cash and cash equivalents $ 10,815 $ 11,424
    Accounts and other receivables, net 84,899 86,213
    Inventories 36,997 38,931
    Prepaid expenses 32,175 18,737
    Deferred income taxes 44,166 45,520
    Assets held for sale and leaseback 62,400 51,793
    Other current assets 517 1,793
    Total current assets 271,969 254,411

    Property and equipment, at cost 1,532,655 1,518,799
    Less accumulated depreciation and amortization (707,105 ) (663,373 )
    Property and equipment, net 825,550 855,426
    Goodwill 140,470 105,872
    Other assets, net 241,099 216,613
    $ 1,479,088 $ 1,432,322

    LIABILITIES AND STOCKHOLDERS’ EQUITY

    Current liabilities:
    Current maturities of long-term debt $ 21,400 $ 21,148
    Accounts payable 67,541 94,348
    Accrued liabilities 176,766 167,487
    Total current liabilities 265,707 282,983

    Long-term debt, net of current maturities 430,441 447,350

    Other long-term liabilities 340,376 290,723

    Deferred income taxes 5,310 5,310

    Stockholders’ equity:
    Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued – –
    Common stock $0.01 par value, 175,000,000 shares authorized, 75,600,656 and 74,992,487 issued, respectively
    756 750
    Capital in excess of par value 215,539 202,684
    Retained earnings 1,108,194 1,063,020
    Accumulated other comprehensive loss, net (115,776 ) (95,940 )
    Treasury stock, at cost, 31,072,631 and 30,746,099 shares, respectively (771,459 ) (764,558 )
    Total stockholders’ equity 437,254 405,956
    $ 1,479,088 $ 1,432,322

    JACK IN THE BOX INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Dollars in thousands)

    (Unaudited)

    Year-to-Date
    July 8, July 10,
    2012 2011

    Cash flows from operating activities:
    Net earnings $ 45,174 $ 57,947
    Adjustments to reconcile net earnings to net cash provided by operating activities:
    Depreciation and amortization 74,210 74,342
    Deferred finance cost amortization 2,068 1,954
    Deferred income taxes (2,314 ) (7,771 )
    Share-based compensation expense 5,001 6,755
    Pension and postretirement expense 26,853 18,343
    Gains on cash surrender value of company-owned life insurance (8,781 ) (8,287 )
    Gains on the sale of company-operated restaurants (18,933 ) (38,940 )
    Gains on the acquisition of franchised-operated restaurants – (426 )
    Losses on the disposition of property and equipment, net 3,762 6,084
    Impairment charges 2,765 1,684
    Changes in assets and liabilities, excluding acquisitions and dispositions:
    Accounts and other receivables (2,891 ) (14,198 )
    Inventories 1,934 (754 )
    Prepaid expenses and other current assets (12,346 ) 2,453
    Accounts payable (5,395 ) (3,071 )
    Accrued liabilities 13,210 4,950
    Pension and postretirement contributions (9,998 ) (3,522 )
    Other (2,737 ) (5,527 )
    Cash flows provided by operating activities 111,582 92,016

    Cash flows from investing activities:
    Purchases of property and equipment (56,205 ) (99,485 )
    Purchases of assets held for sale and leaseback (31,565 ) (17,442 )
    Proceeds from the sale of assets held for sale and leaseback 18,457 25,753
    Proceeds from the sale of company-operated restaurants 29,253 76,915
    Collections on notes receivable 10,198 20,014
    Disbursements for loans to franchisees (3,976 ) (7,582 )
    Acquisitions of franchise-operated restaurants (48,262 ) (22,077 )
    Other 315 2,170
    Cash flows used in investing activities (81,785 ) (21,734 )

    Cash flows from financing activities:
    Borrowings on revolving credit facility 444,380 543,000
    Repayments of borrowings on revolving credit facility (445,104 ) (453,000 )
    Principal repayments on debt (15,933 ) (8,549 )
    Debt issuance costs (741 ) (989 )
    Proceeds from issuance of common stock 7,096 4,260
    Repurchases of common stock (6,901 ) (138,050 )
    Excess tax benefits from share-based compensation arrangements 525 883
    Change in book overdraft (13,728 ) (16,418 )
    Cash flows used in financing activities (30,406 ) (68,863 )

    Net increase (decrease) in cash and cash equivalents (609 ) 1,419
    Cash and cash equivalents at beginning of period 11,424 10,607
    Cash and cash equivalents at end of period $ 10,815 $ 12,026

    JACK IN THE BOX INC. AND SUBSIDIARIES

    SUPPLEMENTAL INFORMATION

    (Unaudited)

    The following table presents certain income and expense items included in the company’s condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

    Quarter Year-to-Date
    July 8, July 10, July 8, July 10,
    2012 2011 2012 2011
    Revenues:
    Company restaurant sales 56.9 % 62.8 % 56.6 % 64.2 %
    Distribution sales 27.7 % 24.2 % 28.5 % 23.3 %
    Franchise revenues 15.5 % 13.0 % 14.9 % 12.5 %
    Total revenues 100.0 % 100.0 % 100.0 % 100.0 %

    Operating costs and expenses, net:
    Company restaurant costs:
    Food and packaging (1) 32.3 % 33.9 % 32.9 % 33.2 %
    Payroll and employee benefits (1) 28.7 % 29.7 % 29.2 % 30.4 %
    Occupancy and other (1) 22.5 % 24.0 % 22.8 % 24.0 %
    Total company restaurant costs (1) 83.5 % 87.5 % 85.0 % 87.5 %
    Distribution costs (1) 100.0 % 100.3 % 100.0 % 100.4 %
    Franchise costs (1) 49.7 % 46.8 % 51.2 % 48.0 %
    Selling, general and administrative expenses 10.5 % 9.9 % 10.4 % 10.1 %
    Impairment and other charges, net 3.0 % 0.4 % 1.5 % 0.6 %
    Gains on the sale of company-operated restaurants (0.7 %) (2.0 %) (1.1 %) (2.3 %)
    Earnings from operations 4.4 % 6.3 % 5.0 % 6.0 %

    Income tax rate (2) 34.6 % 35.2 % 34.3 % 35.0 %

    (1) As a percentage of the related sales and/or revenues.
    (2) As a percentage of earnings before income taxes.

    The following table summarizes the year-to-date changes in the number of Jack in the Box and Qdoba company and franchise restaurants:

    July 8, 2012 July 10, 2011
    Company Franchise Total Company Franchise Total
    Jack in the Box:
    Beginning of year 629 1,592 2,221 956 1,250 2,206
    New 14 16 30 11 10 21
    Refranchised (55 ) 55 – (226 ) 226 –
    Closed (2 ) (2 ) (4 ) (6 ) (1 ) (7 )
    End of period 586 1,661 2,247 735 1,485 2,220
    % of system 26 % 74 % 100 % 33 % 67 % 100 %
    Qdoba:
    Beginning of year 245 338 583 188 337 525
    New 14 20 34 17 30 47
    Acquired from franchisees 45 (45 ) – 24 (24 ) –
    Closed – (3 ) (3 ) – (8 ) (8 )
    End of period 304 310 614 229 335 564
    % of system 50 % 50 % 100 % 41 % 59 % 100 %

    Consolidated:
    Total system 890 1,971 2,861 964 1,820 2,784
    % of system 31 % 69 % 100 % 35 % 65 % 100 %

    Source: Jack in the Box Inc.
    Jack in the Box Inc.
    Investor Contact:
    Carol DiRaimo, 858-571-2407
    or
    Media Contact:
    Brian Luscomb, 858-571-2291

    • Was that good or bad?

    • Seriously? Was that necessary?

    • Use a fucking link douchebag.

    • Just post a fuckin’ LINK, asshole. We don’t need the whole bible here.

    • Apologies and a big Fuck ya all to ya bunch of whiny yallops… didn’t mean to put all this shinola up but during the cut and paste on my iPhone, that fucked up auto-drop down widget for yields and futures fuck everything up and i guess i hit the post button… and we can’t edit or delete after either…

  14. What about the e coli write offs?

  15. Does anyone else think the auto drop down of futures/yields/etc widget is annoying?

    I like the rolling headline feature but do not like the mouseover auto drop. I think a clickable arrow or something on the top left to make it drop down would be less browser intrusive.

    Fly what do you think?

  16. Nefarious Rapscallion

    Fly…bubula….you know you got it all…now stop “jjackin around” and put your ass back into YELP for fucksakes Fly

  17. Nefarious Rapscallion

    And I am not pumping it as I don’t own just returning the favor for RAX

  18. Started day with $SODA ,sold and made some coin. Feeling Cocky….Then $MCD…$VHC…$JACK.To quote that great trader Jerome “Curly” Howard.”were not stupid…were morons”.

  19. Sur Platonic Platueu Du Tecnocrats, B.R.A., D.J.D. upon Rookness.

    Is anyone round these hallowed halls knowledgeable enough to inform the Blind Man as to the causes that creates after hour spikes such as $JACK (NO “I’m lovin’ it”)?

    Obviously disclosure of accountant’s earnings is the issue, but is anyone here an after hours market expert? (this line of inquiry is hideous – I LIKE bebes – thank you).

    Merci.

  20. After hours is not a real market. Just a few traders pushing a stock around randomly, buying a bit and selling a bit. Unless the percentage gains or losses are huge, it is meaningless. You find out the next day what the real market really thinks of a stock.

  21. If JACK remains green throughout tomorrow, that might mean it’s one of those stocks with bad earnings, after which traders believe the worst news is in, and the company and stock are at a bottom, and it’s all up from here.

  22. Seriously? You are a day or two from calling a top…..go back to 60% cash. Just sayin

  23. Dffpa, who knows?

    Maybe Fly’s “another play setting up, something that may offer significant upside, soon to be revealed ” involves shorting a top, for all we know.

    Whatever the new play may be, I await it with bated breath.

  24. Never short a boring market and gosh darn it if this isn’t exactly that.

    SNOOZE-FEST

    Tiny melt-ups day after day in “anticipation” or in “hopes of” usually lead to a nice fat kick to the nuts when reality sets back in.

    Be safe my trading friends.

  25. VHC GOING TO MAKE New LOWS

  26. If it does who cares I’m not short or long on this non sense , just telling you that your balls are going to get punched in the next week or so .

  27. http://news.yahoo.com/mars-crater-where-rover-landed-looks-earth-201913389–finance.html
    Rover “landing” filmed in Mojave desert, tax payer dollars wired to all the biggest campaign supporters

  28. Hilarious post.

  29. where is FLY this am???

  30. I’m betting Fly caught a nice trade in Jack and didn’t wait for extra cheese and double fries. Got Jack on before Jack off.

  31. DICK LOVER

    One more DMND short pump and you are exiled.

  32. Nice try loser

  33. I ask that you please toss this fucker into the hoosegow without waiting for another one of his retarded DMND short calls. The stock is up over 8% since he first made this call and he hasn’t shut up about it. You are giving him one more chance as a gentleman would but you’ve already been acting like a gentleman of the highest order long enough by putting up with his shit for as long as you have.

  34. Make that up 12% now lol

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