Revenue during the quarter went up marginally by 2.28 percent to $369.39 million from $361.15 million in the previous year period. Gross margin for the quarter contracted 174 basis points over the previous year period to 26.53 percent. Total expenses were 82.23 percent of quarterly revenues, down from 85.38 percent for the same period last year. This has led to an improvement of 316 basis points in operating margin to 17.77 percent.

Operating income for the quarter was $65.65 million, compared with $52.79 million in the previous year period.

Lenny Comma, chairman and chief executive officer, said, "While operating earnings per share increased 15 percent versus last year, driven primarily by lower G&A, our second quarter performance was below our expectations. After a sluggish start to the quarter, which we believe was attributable to delayed tax refunds and record rainfall in California, Jack in the Box® system same-store sales improved to positive territory as these transitory issues passed and we pivoted our advertising towards value messages. However, same-store sales at Qdoba® company restaurants worsened in the latter two months of the quarter, as we lapped more aggressive discounting in last year's second quarter. While margins at Qdoba were still disappointing, they improved to over 16 percent in the final month of the quarter as we were able to manage labor and food costs more effectively than in the first quarter, despite the larger decline in same-store sales. We are also encouraged that Qdoba company same-store sales have improved thus far in the third quarter."

For financial year 2017, Jack in the Box Inc. forecasts diluted earnings per share from continuing operations to be in the range of $4.10 to $4.30.

Cash flow from investing activities was $1.75 million for the first half as against cash outgo of $45.16 million in the last year period. It has incurred net capital expenditure of $30.67 million on net basis during the first six months, down 37.57 percent or $18.46 million from year ago period.

The company has spent $138.58 million cash to carry out financing activities during the first six months as against cash outgo of $44.25 million in the last year period.

Cash and cash equivalents stood at $6.36 million as on Apr. 16, 2017, down 27.74 percent or $2.44 million from $8.80 million on Apr. 10, 2016.

Working capital remains negative
Working capital of Jack in the Box Inc. was negative $126.43 million on Apr. 16, 2017 compared with negative $83.75 million on Apr. 10, 2016. Current ratio was at 0.47 as on Apr. 16, 2017, down from 0.62 on Apr. 10, 2016.

Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 5 days for the last year period. Days sales outstanding went down to 5 days for the quarter compared with 8 days for the same period last year.

Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 7 days for the quarter from 5 for the same period last year.