Jack in the Box’s profit rises in quarter

Hamburger chain Jack in the Box Inc. posted higher-than-expected quarterly profit Tuesday and said it would purchase as much as 15.5% of its stock in a tender offer.

Lower costs for labor and most foods, including beef, and proceeds from the sale of restaurants in Hawaii helped lift earnings, the San Diego-based company said.

Profit rose to $33.2 million, or 92 cents a share, in the fiscal fourth quarter ended Oct. 1, from $21.5 million, or 59 cents, a year earlier. The sale of the Hawaiian restaurants to a franchisee added 25 cents a share to earnings in the latest quarter, Jack in the Box said.

Excluding the gain from the sale of the restaurants and a charge to write down assets at six restaurants in the Southeast, earnings were 73 cents a share.

A lower-than-expected state income tax rate added 2 cents a share to earnings. Analysts on average looked for 66 cents a share, according to Reuters Estimates.

Revenue rose 11.2% to $670.7 million. Sales at Jack in the Box company-owned restaurants open at least a year were up 5.9%, while systemwide same-restaurant sales at its Qdoba Mexican Grill chain increased 4.5%. Jack in the Box forecast earnings of 78 cents to 81 cents a share for its fiscal first quarter. Analysts were expecting 78 cents, according to Reuters Estimates.

Jack in the Box rose $2.82, or 4.8%, to $61.39.