Jack in the Box feels slump in discretionary spending.(Financial report)(Brief article)

Jack in the Box reported reduced profits and sales for its third quarter in a press statement Aug. 4.

The company said for the third quarter that ended July 5 it had a net profit of $19.6 million compared to net profit of $29.9 million for the like quarter of 2008.

Revenue for the period was $575.7 million, compared to $591.9 million for the like quarter of 2008.

CEO Linda Lang said the ongoing recession, higher unemployment and higher gas prices in the quarter resulted in consumers cutting back on their discretionary spending. Lang also mentioned stiff competition and price cuts by other fast-food chains, and other restaurants.

Jack in the Box said it recorded an after-tax loss of $14 million based on the pending sale of 61 Quick Stuff convenience stores in a series of cash transactions that are expected to be completed by the end of its fiscal year.

Stock in Jack in the Box, traded under JACK on Nasdaq, has ranged from $11.82 to $30.35 over the past 52 weeks.

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