US-based restaurant chain Jack in the Box, also owner of the Del Taco restaurant brand, has reported net earnings of $29.16m for the third quarter of fiscal year (FY) 2023.
This is an increase of 27.6% compared to $22.85m a year ago.
For the quarter that ended 9 July 2023, total revenues were $396.94m. This is almost flat compared to the $398.3m reported a year earlier.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter was $79.4m compared with $73.2m in the prior year’s quarter.
The company’s adjusted earnings per share (EPS) were $1.45 against $1.34 a year ago.
During the quarter, Jack in the Box’s same-store sales rose by 7.9%, franchise same-store sales grew by 8% and company-operated same-store sales rose by 6.9%.
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The company noted that its systemwide sales rose by 8% during the period.
It reported a growth in the net restaurant count in Q3, with six new restaurant openings and two franchisee closures.
Jack in the Box’s subsidiary Del Taco reported a growth of 1.7% in its same-store sales in the Q3 of 2023.
During the period under review, Del Taco’s franchise same-store sales registered a growth of 1.8% and the company-operated same-store sales grew by 1.7%.
Its systemwide sales for the Q3 of FY23 grew by 1.6% due to positive results in both franchise and company-operated same-store sales.
During the quarter, the company refranchised 50 Del Taco restaurants.
Jack in the Box plans to franchise 90-120 Del Taco restaurants in FY23, up from previous guidance of 65-85 restaurants.
Jack in the Box CEO Darin Harris said: “I am pleased to see strong results to begin the second half of 2023, highlighted by a record-breaking opening in Salt Lake City, as our strategic focus areas are beginning to take shape and sustain
“Relentless focus on execution is supporting our momentum, which includes progress on gross openings and net unit growth, improving restaurant margins and franchisee profitability and outstanding sales performance led by late night.
“We are also making progress on the integration and refranchising of Del Taco, which is delivering incremental development commitments, as well as further progress toward net new unit growth and an asset-light company.”