Jack in the Box profit falls 2.2%

Jack in the Box Inc., owner of the namesake hamburger chain and Qdoba Mexican Grill, said fiscal first-quarter profit fell 2.2% from the previous year as food costs rose.

Net income for the quarter that ended Jan. 20 fell to $36.5 million, or 60 cents a share, from $37.4 million, or 52 cents, the San Diego company said.

Sales rose 5.6% to $904.9 million, including an increase of 1.5% at Jack in the Box restaurants open at least a year and 4.5% at Qdoba locations in the same period. Operating costs climbed 5.6% to $837.4 million, fueled by higher costs for cheese, eggs and shortening. Produce costs also rose because of bad weather.

Jack in the Box said it expected full-year profit of $1.98 to $2.08 a share, including the effect of a higher tax rate, costs to upgrade restaurants and kitchen enhancements.

Shares rose $2.03, or 7.6%, to $28.64.

Toy maker Jakks’ earnings up 48%

Toy maker Jakks Pacific Inc. said its fourth-quarter profit climbed 48% because of strong sales of Disney toys, action figures and electronic and video games.

Net income increased to $34.4 million, or $1.06 a share, from $23.2 million, or 73 cents, a year earlier, the Malibu-based company said. Revenue grew 20% to $285.1 million.

Analysts polled by Thomson Financial expected a profit of 74 cents a share on revenue of $246.8 million.

Shares closed up $1.15, or 4.3%, at $28.

Drug maker swings to profit

Generic drug maker Watson Pharmaceuticals Inc. reported a fourth-quarter profit that beat analysts’ estimates, compared with a year-earlier loss tied to research costs.

Net income was $38.4 million, or 34 cents a share, the Corona-based company said. A year ago, Watson reported a loss of $489 million, or $4.80. Earnings excluding one-time items beat by 4 cents the 31-cent-a-share estimate of analysts surveyed by Bloomberg.

Revenue increased about 1% to $627.3 million, as a new distribution business made up for a drop in both generic and brand-name drug sales.

Investors have waited for Watson to introduce new products as sales of older drugs decline, and analysts say its plans to recertify a Florida manufacturing plant this year and submit three new brand-name drugs to regulators are steps in the right direction. The company has also hired executives from rivals to help ignite growth.

Watson predicted that 2008 revenue would be little changed at about $2.5 billion and adjusted earnings would rise to $1.90 to $2 a share, from $1.37 a share in 2007.

Shares fell 11 cents to $28.21.

From Times Wire Services