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FOODMAKER ANNOUNCES SECOND QUARTER RESULTS

 SAN DIEGO, May 13 /PRNewswire/ -- Foodmaker Inc. (NYSE: FM), the operator and franchisor of JACK IN THE BOX and CHI-CHI'S Mexican restaurant chains, today announced that, as expected, the company had a net loss of $29.3 million, or 75 cents a share, for the second fiscal quarter ended April 11, 1993, compared with earnings, before an extraordinary loss, of $3 million, or 10 cents a share, for the same quarter of 1992.
 System-wide sales fell 15.6 percent in the second quarter of 1993 to $285.4 million, compared with $338.0 million in 1992's second quarter. Total revenues were $244.9 million in the second quarter of 1993, compared with $277.4 million in the like quarter of 1992.
 "The second-quarter loss, which is consistent with the company's earlier projections, reflects the impact of the recent outbreak of food-borne illness in the Pacific Northwest," said Jack Goodall, Foodmaker president and chief executive officer. "Although sales were substantially depressed in the initial weeks of the outbreak in January, we have subsequently witnessed a strong overall sales rebound."
 Aggressive Marketing Successful
 The chain implemented an aggressive marketing program during the quarter, which featured a heavy advertising schedule and attractive promotions tied to


popular menu items. In addition, JACK IN THE BOX introduced a new menu offering, The Smoked Chicken, Cheddar & Bacon Sandwich, in late March.
 For the quarter, JACK IN THE BOX comparable restaurant sales averages were 22.2 percent below the same period one year ago. For the four weeks following the end of the second quarter, comparable restaurant sales averages were 8.4 percent below the same weeks a year ago, reflecting the chain's continuing sales improvement.
 "Based on our swift response to the crisis, our financial resources and our successful JACK IN THE BOX marketing strategies, we believe that our sales will continue to improve and that our business will recover," said Goodall.
 During the quarter, JACK IN THE BOX extended special financial assistance to franchisees following the outbreak. This assistance, along with reduced franchise rents and royalties, accounted for approximately $8 million of the loss in the quarter.
 New Restaurants Added
 The number of company-operated JACK IN THE BOX restaurants grew to 715 at the end of the second quarter, compared with 681 at the end of 1992's second quarter. Franchised JACK IN THE BOX restaurants stood at 450 units at the end of the second quarter, compared with 426 for the same time one year ago.
 The number of company-operated CHI-CHI'S restaurants grew to 207 at the end of the second quarter, compared with 179 at the end of 1992's second quarter. Franchised CHI-CHI'S restaurants stood at 29 units at the end of the second quarter, compared with 52 for the same time one year ago. CHI-CHI'S comparable restaurant average sales declined 6.1 percent in the second quarter compared to one year ago, primarily because of the negative impact of the severe weather in the Midwest and East Coast markets.
 Promotion Expenses Impact SG&A
 Costs of revenues in the second quarter totalled $230.9 million, compared with $231.1 million in 1992's second quarter. Selling, general and administrative expenses were $33.7 million for the second quarter, compared with $22.5 million for the same quarter of 1992. This change was due primarily to a $5.9 million increase in advertising and promotion expenses and a $4.6 million increase in other expenses resulting primarily from write-offs, accruals and administrative costs related to the outbreak.
 Interest expense in 1993's second quarter fell to $12.9 million, from $18.3 million in the second quarter of 1992, due to the continuing benefits of the company's 1992 recapitalization efforts.
 JACK IN THE BOX owns, operates and franchises 1,165 restaurants throughout the western and southwestern United States, as well as in Mexico and Hong Kong. CHI-CHI'S, the nation's largest full-service Mexican restaurant chain with 236 units, is located primarily in the Midwest and Mid-Atlantic states.
 FOODMAKER INC. AND SUBSIDIARIES
 Unaudited Consolidated Statements of Operations
 (In thousands, except per share data)
 12 Weeks Ended 28 Weeks Ended
 April 11, April 12, April 11, April 12,
 1993 1992 1993 1992
 Revenues:
 Restaurant sales $217,319 $241,376 $569,004 $560,862
 Distribution sales 20,273 23,858 55,087 55,208
 Franchise rents and
 royalties 5,944 9,031 18,544 20,718
 Other 1,373 3,110 5,605 7,463
 Total 244,909 277,375 648,240 644,251
 Costs and expenses:
 Costs of revenues:
 Restaurant costs 201,200 204,003 492,753 472,091
 Cost of distribution
 sales 19,620 22,318 52,973 51,851
 Franchised restaurant
 costs 10,092 4,793 16,989 11,149
 Selling, general and
 administrative 33,688 22,473 69,913 53,353
 Interest expense 12,915 18,261 30,085 45,892
 Total 277,515 271,848 662,713 634,336
 Earnings (loss) before
 income taxes and
 extraordinary item (32,606) 5,527 (14,473) 9,915
 Income taxes (benefit) (3,353) 2,487 3,900 4,461
 Earnings (loss) before
 extraordinary item (29,253) 3,040 (18,373) 5,454
 Extraordinary item - loss
 on early extinguishment
 of debt, net of taxes --- (60,462) --- (60,462)
 Net loss ($29,253) ($57,422) ($18,373) ($55,008)
 Earnings (loss) per
 share - primary and
 fully diluted:
 Earnings (loss) before
 extraordinary item ($.75) $.10 ($.47) $.21
 Extraordinary item --- (2.03) --- (2.31)
 Net loss per share ($.75) ($1.93) ($.47) ($2.10)
 Weighted average shares
 outstanding 39,086 29,737 39,143 26,224
 -0- 5/13/93
 /CONTACT: Sheree Zizzi of Foodmaker, 619-571-2248/
 (FM)


CO: Foodmaker Inc. ST: California IN: LEI SU: ERN

LS-JL -- LA015 -- 7900 05/13/93 08:06 EDT
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Date:May 13, 1993
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