JACK – REAL-TIME COMMENTS

09/29/10 09:33AM EDT

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

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