Jack in Box Parent Posts Record Profit

Foodmaker Inc., whose Jack in the Box fast-food unit has been linked to a wave of food poisonings in the West, reported record earnings, up 354%, for the first quarter of fiscal 1993.

However, the company said comparable-restaurant sales for Jack in the Box plunged 30% to 35% during the second and third week after media attention focused on the food poisonings. The company stopped product advertising during that time.

Foodmaker earned $10.9 million, or 28 cents a share, in the quarter ended Jan. 17, up from $2.4 million, or 10 cents, on 66% more shares outstanding.

Revenue increased 7.2% to $479.4 million from $447.1 million in the year-earlier period.

The company exceeded estimates by three analysts surveyed by Zacks Investment Research by 12%. They predicted earnings of 25 cents for the quarter.

More than 600 cases of food poisoning or secondary infection cases caused by the E. coli bacteria have been reported in Washington and Nevada, officials said, with two deaths linked to Jack in the Box.

At least 93% of the Washington cases and all the Nevada cases have been linked by officials to Jack in the Box.

“We are confident that our quick response, our financial resources and our insurance coverage are sufficient to protect the long-term viability of the company,” said Jack Goodall, president, chairman and chief executive of Foodmaker.

Foodmaker took a $750,000-charge for the quarter to cover the deductible on its general liability insurance policy, the company said.