Jack in the Box Lifts Profit Forecast Thanks to Gourmet Sandwich Line

Jack in the Box Inc., the operator of more than 1,900 hamburger restaurants, on Thursday raised its forecast for fiscal second-quarter earnings because a line of gourmet sandwiches is boosting sales.

Jack in the Box said it would earn 42 cents to 44 cents a share in the second quarter ending April 11. The company, which also operates more than 130 Qdoba Mexican Grill restaurants, had said in February that it expected profit to fall to 28 cents a share from 44 cents a year earlier.

The San Diego-based company said its Pannido sandwiches were helping increase same-store sales by about 7.5% for the quarter, compared with a previous forecast of 4% to 4.5% growth. Lower food and labor costs and a decrease in the estimated annual income tax rate also will contribute, Jack in the Box said.

“While we are extremely excited about our second-quarter same-store sales performance, we recognize that we will be facing tougher comparisons for the balance of the year,” Chief Executive Robert Nugent said in the statement.

The company’s shares jumped $3.86, or 15%, to $28.83 on the New York Stock Exchange. They have risen 35% this year. Jack in the Box will report second-quarter results May 12.

The company said capital expenditures in the second-quarter would be about $22 million to $24 million, less than the $29 million forecast, because of its decision to open fewer Qdoba restaurants and spend less on new Jack in the Box restaurants.

In March, the company opened two of its remodeled Jack in the Box restaurants in San Diego. The restaurants are part of the company’s plan to attract more women as well as more older customers by improving customer service and adding higher-quality food.

Same-store sales are an important measure of a retailer’s performance because they exclude results from new and closed locations.