Jack in the Box's 2Q profit jumps 19 percent

SAN DIEGO (AP) -- Jack in the Box Inc.'s second-quarter profit jumped 19 percent as the restaurant operator cut costs to offset slower sales.

The San Diego-based company said that it benefited from stronger sales at its Qdoba Mexican Grill chain and lower costs at its namesake chain.

Its revenue from sites open at least a year increased 0.7 percent at Jack in the Box and 7 percent at Qdoba during the quarter. That metric is considered a key indicator of a retailer's financial health as it strips away the impact of recently opened or closed sites.

Jack in the Box said after the market closed Wednesday that it earned $15.8 million, or 37 cents per share, for the quarter that ended April 13. That is up from $13.3 million, or 29 cents per share, in the same quarter last year. On an adjusted basis, it earned 51 cents a share. Revenue slipped to $340.9 million from $347.2 million.

Analysts polled by FactSet were anticipating adjusted earnings of 52 cents per share on revenue of $338.9 million for the period.

Jack in the Box said it expects its sales from established sites to increase 2 to 3 percent at its namesake chain and 3 to 4 percent at Qdoba during the third quarter. For the full year, the company expects this measure will increase 1.5 to 2.5 percent at Jack in the Box and 3 to 4 percent at Qdoba.

The company also said it expects its adjusted earnings per share between $2.25 and $2.35 per share for 2014; analysts are forecasting $2.35 per share.

Jack in the Box also said that it will start paying a regular quarterly dividend due to its more stable cash flow. The dividend of 20 cents per share will be paid June 9 to shareholders of record as of May 27.

The company's stock slipped 75 cents to $53.26 in after-hours trading.

Jack in the Box owns or franchises more than 2,250 restaurants in 21 states.