Foodmaker, Inc., Operator and Franchisor of Jack in the Box Restaurants, Reports 56 Percent Earnings Growth as Same-Store Sales Climb 9.1 Percent.SAN DIEGO--(BUSINESS WIRE)--May 3, 1999-- Achieving the highest second quarter results in its history before unusual items, Foodmaker, Inc. (NYSE NYSE See: New York Stock Exchange :FM), operator and franchisor of Jack in the Box(R) restaurants, today reported net earnings of $13.6 million, or 35 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. The new record is more than 56 percent higher than second quarter earnings a year ago of $8.7 million, or 22 cents per diluted share, excluding unusual items. "These strong results tell us that our strategy of improving the overall restaurant experience is resonating res·o·nate v. res·o·nat·ed, res·o·nat·ing, res·o·nates v.intr. 1. To exhibit or produce resonance or resonant effects. 2. with our customers, resulting in both more customer visits and higher check amounts," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Nugent, Foodmaker's president and chief executive officer. The company is benefiting from such initiatives as new, easier-to-read menu boards that showcase combo meals and feature an order confirmation system, as well as an assemble-to-order program where sandwiches are prepared only after the customer orders them, he added. During the second quarter, the company reduced accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. and restaurant operating costs operating costs npl → gastos mpl operacionales by approximately $18 million, primarily due to a change in estimates resulting from improvements to its loss prevention and risk management programs, which have been more successful than anticipated. This unusual item increased net earnings by approximately $11 million, net of taxes, resulting in net earnings for the quarter of $25 million, or 64 cents per diluted share. Unusual items in last year's second quarter, including income from the settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with meat suppliers and a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc various writeoffs, resulted in second quarter net earnings of $34.3 million, or 85 cents per diluted share in fiscal 1998. Sales at company-operated restaurants during the quarter reached $304 million, a 22 percent improvement compared with the second quarter a year ago. Systemwide sales improved about 19 percent, to $389 million. Total revenues reached $322 million, or nearly 22 percent more than in last year's second quarter, excluding the settlement income. Per store average sales (PSAs) at comparable company restaurants increased 9.1 percent during the quarter compared with last year, representing the 17th consecutive quarter of PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. growth. Of that amount, 5.5 percent was achieved through increased customer visits and 3.6 percent was through increases in average check amounts. The company's restaurant operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: exclusive of the reported change in estimate in 1999 grew to 19.5 percent of restaurant sales during the quarter, nearly a full percentage point higher than a year ago. During the quarter, the company added 26 new company-operated restaurants for a total of 1,129 company-operated units. With 57 new company-operated restaurants year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , Foodmaker is more than half way toward achieving its goal of 110 new company units in fiscal 1999. Foodmaker operates and franchises 1,469 Jack in the Box restaurants, primarily in the West. With more than $1.2 billion in annual revenues, the company has 35,000 employees. Foodmaker is headquartered in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . Foodmaker's plans are subject to risks and uncertainties that could cause actual results to differ materially. Risk factors relating to Foodmaker's business are described in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . -0-
Foodmaker, Inc. and Subsidiaries
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
Twelve Weeks Ended Twenty-eight Weeks Ended
April 11, April 12, April 11, April 12,
1999 1998 1999 1998
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Revenues:
Restaurant Sales $303,666 $249,505 $688,106 $574,838
Distribution
and other sales 8,893 5,578 19,190 12,351
Franchise rents
and royalties 8,899 8,029 20,600 18,963
Other 515 46,797 1,211 47,531
------- ------- ------- -------
321,973 309,909 729,107 653,683
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Costs and expenses:
Cost of revenues:
Restaurant costs
of sales 97,177 79,504 220,773 184,576
Restaurant
operating costs 129,252 123,480 316,593 282,627
Costs of distribution
and other sales 8,711 5,432 18,881 12,057
Franchised
restaurant costs 5,786 5,480 12,940 12,455
Selling, general
and administrative 34,906 37,406 79,811 75,141
Interest expense 6,454 8,160 15,471 19,206
------- ------- ------- -------
282,286 259,462 664,469 586,062
------- ------- ------- -------
Earnings before
income taxes 39,687 50,447 64,638 67,621
Income taxes 14,700 16,100 23,900 21,600
------- ------- ------- -------
Net earnings $ 24,987 $ 34,347 $ 40,738 $ 46,021
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Net earnings
per share:
Basic $ 0.66 $ 0.88 $ 1.07 $ 1.17
Diluted $ 0.64 $ 0.85 $ 1.04 $ 1.14
Weighted average
shares outstanding:
Basic 38,138 39,226 38,059 39,178
Diluted 39,329 40,327 39,136 40,252
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