Jack in the Box To Close 50 Restaurants

San Diego

San Diego-based Jack in the Box Inc. plans to close 40 of its company-operated restaurants prior to the end of its current fiscal year, which ends on Oct. 3, 2010. The restaurants are located across seven states, primarily in the Southeast and Texas. System-wide, there are more than 2,200 Jack in the Box restaurants in 18 states. The decision to close the restaurants was the result of a comprehensive analysis performed during the company’s fiscal fourth quarter that examined restaurants not meeting acceptable levels of return on investment and other key operating performance metrics. Linda A. Lang, chairman, chief executive officer and president, points out that “These restaurant closures are expected to have a positive impact on our future earnings, cash flow and return on invested capital. The decision to close underperforming restaurants reflects the company’s commitment to disciplined capital allocation and to ensuring we are maximizing both our physical assets and people resources.” The company currently expects pre-tax charges for the fourth quarter of fiscal 2010 to include approximately $8.5 to $9.5 million in non-cash impairment charges and approximately $21.0 to $25.0 million in lease-related costs.