The company is continuing its strategy of growth via the addition of new, company-operated restaurants, says Chairman and CEO Robert J. Nugent. Jack in the Box opened 26 new company restaurants during the second quarter for a total of 1,371. The company expects to open 130 new units during the fiscal year, including about 30 in its new, southeastern region.
Restaurant operating margins declined 1.2 percentage points to 18.6% of sales in the second quarter compared with a year ago, primarily due to substantially higher utility costs, and to a lesser extent, labor. "We continue to reach a growing number of customers, and our business fundamentals remain sound,'' says Nugent. "That said, as we reported earlier, rising utility costs will affect our fiscal 2001 results."
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