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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.

Howard Penney

Managing Director