Jack in the Box Inc., owner of the namesake hamburger chain and Qdoba Mexican Grill, said fiscal first-quarter profit fell 2.2% from the previous year as food costs rose.
Net income for the quarter that ended Jan. 20 fell to $36.5 million, or 60 cents a share, from $37.4 million, or 52 cents, the San Diego company said.
Sales rose 5.6% to $904.9 million, including an increase of 1.5% at Jack in the Box restaurants open at least a year and 4.5% at Qdoba locations in the same period. Operating costs climbed 5.6% to $837.4 million, fueled by higher costs for cheese, eggs and shortening. Produce costs also rose because of bad weather.
Jack in the Box said it expected full-year profit of $1.98 to $2.08 a share, including the effect of a higher tax rate, costs to upgrade restaurants and kitchen enhancements.
Shares rose $2.03, or 7.6%, to $28.64.