New Products Help Bolster Results at Jack in the Box

Restaurant operator Jack in the Box Inc. reported Wednesday that net income for its fiscal first quarter fell 26%, but profit from continuing operations beat Wall Street estimates, boosted by new products and better industry trends, sending its shares up 6%.

Including a charge related to debt refinancing, net income was $15.6 million, or 43 cents a share, down from $21.2 million, or 56 cents, a year earlier.

For the quarter ended Jan. 18, the San Diego company said earnings from continuing operations were 58 cents a share, beating the average estimate of 52 cents a share among analysts polled by Reuters.

Revenue rose 9.2% to $669.9 million. Sales at restaurants open at least a year rose 3.1%.

Shares of Jack in the Box, which operates about 2,000 namesake restaurants and the Qdoba Mexican Grill chain, rose $1.45 to $25.85 -- the highest level in 18 months.

Jack in the Box also said it was evaluating a new restaurant concept, which features an upgraded menu and new decorations.

For fiscal 2004, the company expects to earn $1.74 a share, excluding the refinancing charge, up from its previous estimate of $1.68. For the second quarter, it forecast 28 cents a share.

Analysts expect full-year profit of $1.69 a share and second-quarter profit of 32 cents.