Jack in the Box Pares Forecast

Jack in the Box Inc. on Thursday cut its profit outlook for fiscal 2005 and said it would restate results from the last three years because of a change in the way it accounts for leases.

The San Diego-based burger chain said it now expected to earn 66 cents a share for its fiscal first quarter and $2.33 a share for the year. The company had previously forecast earnings of 69 cents a share for the quarter and $2.43 a share for the year.

Earnings for the quarter and the year are still expected to be up compared with the previous year’s periods, the company said.

In a statement, Jack in the Box said it began a review of its accounting policies after reading a November regulatory filing by CKE Restaurants Inc., the parent of the rival Carl’s Jr. fast-food chain. In that filing, CKE said it didn’t correctly account for certain restaurant property leases.

Jack in the Box said that as a result of the accounting change, it would now accelerate depreciation and amortization for buildings and other assets that were the subject of its leases.

The adjustment will result in a total increase of $38.8 million in its depreciation and amortization expenses for the three fiscal years, the company said.

The news was released after the markets closed. Jack in the Box shares fell 18 cents in after-hours trading after falling 30 cents to $38.50 on the New York Stock Exchange.