Updated sales guidance implies that Jack in the Box trends are at least stabilizing.
Management stated at an investor conference this morning that it does not expect to see a significant improvement in Jack in the Box top-line trends until the unemployment picture improves in its key regions. That being said, with less than one week left in the company’s fiscal 4Q10, management said that same-store sales are tracking slightly better the company’s most recent quarterly guidance. For reference, JACK guided to a 4.5% to 5.5% decline in comp sales at Jack in the Box. A -4.5% comp implies two-year average trends that are relatively stable with 3Q10. The company attributed the better-than-expected trends to its strong promotional calendar and better service execution.