(Reuters) - Hamburger chain Jack in the Box Inc (JACK.O) reported a lower-than-expected profit as fewer customers visited its restaurants, making it the latest chain to be hit by a price war sparked by McDonald’s Corp’s (MCD.N) launch of all-day breakfasts.
Shares of Jack in the Box, which also reported lower-than-expected sales at established restaurants, were down about 20 percent at $61.77 in extended trading on Wednesday.
Jack in the Box said a competitor’s promotions of its all-day breakfast also hurt sales, particularly in the 10:30 a.m. to noon period.
McDonald’s Corp (MCD.N) launched all-day breakfasts in October, a move that was a big hit with diners and helped the company post its biggest quarterly U.S. same-store sales growth in nearly four years.
Jack in the Box’s system-wide same-store sales grew 1.4 percent in the quarter ended Jan. 17, compared with the 2.8 percent increase analysts had expected, according to Consensus Metrix.
Jack in the Box said its net income fell to $33.2 million from $35.8 million a year earlier.
On a per share basis, net income rose by a cent to 92 cents per share from 91 cents.
Revenue rose slightly to $470.8 million.
Analysts on average had expected profit of $1.03 per share and revenue of $475.5 million, according to Thomson Reuters I/B/E/S.
The company also said it planned to increase franchise ownership for its Jack in the Box restaurants to at least 90 percent in the next two years.
Reporting by Ramkumar Iyer in Bengaluru; Editing by Saumyadeb Chakrabarty