Exhibit 99.1

Jack in the Box Inc. Reports Second Quarter FY 2011 Earnings; Updates Guidance for FY 2011

SAN DIEGO--(BUSINESS WIRE)--May 18, 2011--Jack in the Box Inc. (NASDAQ: JACK) today reported net earnings of $6.8 million, or $0.13 per diluted share, for the second quarter ended April 17, 2011, compared with net earnings of $17.7 million, or $0.32 per diluted share, for the second quarter of fiscal 2010.

Gains from refranchising contributed approximately $0.01 per diluted share for the quarter as compared with approximately $0.04 per diluted share in the prior year quarter. Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share on a GAAP basis less gains from refranchising, were $0.12 per diluted share compared with $0.28 per diluted share in the prior year quarter.

Increase (decrease) in same-store sales:

Linda A. Lang, chairman, chief executive officer and president, said, “Jack in the Box company same-store sales increased 0.8 percent in the second quarter, ahead of our expectations, as sales and traffic rebounded after severe weather impacted many of our major markets in the first four weeks of the quarter. On a two-year basis, we’re continuing to see sequential improvement in same-store sales with three consecutive quarters of improving trends. We believe the investments we have made in the business to enhance the entire guest experience, along with employment growth, will drive improved sales results at the Jack in the Box brand.

“Qdoba’s same-store sales momentum continued in the second quarter with an increase of 6.0 percent system-wide, driven largely by transaction growth as well as higher catering sales,” Lang said.

Consolidated restaurant operating margin was 12.3 percent of sales in the second quarter of 2011, compared with 15.2 percent of sales in the year-ago quarter.

Food and packaging costs in the quarter were 190 basis points higher than prior year. Overall commodity costs were approximately 5.0 percent higher in the quarter, driven by higher costs for beef, produce, cheese, pork, dairy and shortening. These increases were partially offset by lower costs for bakery and poultry and the benefit of higher prices.

Payroll and employee benefits costs were 30.5 percent of restaurant sales versus 30.2 percent in the year-ago quarter, reflecting higher levels of staffing designed to improve the guest experience. In addition, higher unemployment taxes resulting from rate increases in several states negatively impacted payroll and employee benefit costs.

Occupancy and other costs increased 70 basis points in the second quarter due to additional costs relating to guest service initiatives and higher rent expense as a percentage of sales resulting from a greater proportion of company-operated Qdoba restaurants versus the prior year. These costs were partially offset by lower utilities expense.

SG&A expense for the second quarter decreased by $2.1 million and was 10.4 percent of revenues compared with 10.3 percent last year. The decrease in SG&A was attributable primarily to the following:

• The company’s refranchising strategy and planned overhead reductions resulted in lower general and administrative costs of approximately $0.7 million.
• Advertising costs were $4.2 million lower, as the impact of refranchising of Jack in the Box restaurants was partially offset by higher advertising expense due to more Qdoba company restaurants.
• Pension expense decreased by approximately $1.2 million due primarily to the company’s previously announced decision to sunset its pension plan, whereby participants will no longer accrue benefits after December 31, 2015.
• Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $1.3 million in the second quarter as compared to a positive impact of $0.7 million in last year’s second quarter, resulting in a year-over-year decrease in SG&A of $0.6 million.

These decreases were partially offset by the following:

• Incentive compensation accruals were $1.7 million higher in the quarter.
• Qdoba G&A increased by $1.6 million due primarily to higher pre-opening costs, overhead to support the recently acquired Boston and Indianapolis markets, and new unit growth.

Gains on the sale of 26 company-operated Jack in the Box restaurants to franchisees totaled $0.9 million in the second quarter, or approximately $0.01 per diluted share, compared with $3.0 million, or approximately $0.04 cents per diluted share, in the year-ago quarter from the sale of 30 restaurants. For the second quarter of 2011, average gains were $34,000 per restaurant, and total proceeds related to refranchising were $5.5 million, or an average of $212,000 per restaurant. The restaurants sold in the second quarter included 22 restaurants in one market that had lower-than-average sales volumes and cash flows; however, the company expects the sale of these restaurants to be accretive to future operating earnings. The company did not provide any additional financing during the quarter related to refranchising. As of the end of the second quarter, notes receivable from franchisees related to refranchising activities totaled $10.9 million.

The tax rate for the second quarter was 32.8 percent compared with 35.2 percent in the prior year. The tax rate for the second quarter was lower than prior year and the company’s most recent guidance due primarily to the market performance of insurance investment products used to fund certain non-qualified retirement plans. Changes in the cash value of the insurance products are not deductible or taxable.

The company repurchased approximately 1,125,000 shares of its common stock in the second quarter of 2011 at an average price of $22.23 per share. Through the first two quarters of fiscal 2011, the company repurchased approximately 3,476,000 shares of its common stock at an average price of $21.58 per share. In November 2010, the company’s board of directors authorized a $100 million stock-buyback program that expires in November 2011, of which $25 million remained available as of the end of the second quarter. In May 2011, the company’s board of directors authorized an additional $100 million stock-buyback program that expires in November 2012.

Restaurant openings

Eight new Jack in the Box restaurants opened in the second quarter, including 6 franchised locations, compared with 11 new restaurants opened system-wide during the same quarter last year, of which 4 were franchised. In the second quarter, 10 Qdoba restaurants opened, including 5 franchised locations, versus 4 new restaurants in the year-ago quarter, of which 3 were franchised. At April 17, 2011, the company’s system total comprised 2,220 Jack in the Box restaurants, including 1,372 franchised locations, and 549 Qdoba restaurants, including 328 franchised locations.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 10, 2011, and the fiscal year ending Oct. 2, 2011. Fiscal 2011 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters. Fiscal 2010 was a 53-week year, with the additional week occurring in the fourth quarter.

Third quarter fiscal year 2011 guidance

• Same-store sales are expected to increase approximately 2 to 4 percent at Jack in the Box company restaurants versus a 9.4 percent decrease in the year-ago quarter.
• Same-store sales are expected to increase approximately 4 to 6 percent at Qdoba system restaurants versus a 4.6 percent increase in the year-ago quarter.
• Same-store sales guidance reflects trends experienced during the first four weeks of the third quarter.
• Commodity costs for the quarter are currently expected to increase by 6 to 7 percent, driven by higher costs for most commodities other than poultry and potatoes.
• Refranchising gains are expected to be lower than the third quarter of 2010.

Fiscal year 2011 guidance

• Same-store sales are expected to increase approximately 1 to 3 percent at Jack in the Box company restaurants.
• Same-store sales are expected to increase approximately 4 to 6 percent at Qdoba system restaurants.
• Overall commodity costs are now expected to increase by 4.5 to 5.5 percent for the full year.
• Restaurant operating margin for the full year is expected to range from 12.5 to 13.5 percent, depending on same-store sales and commodity inflation.
• 30 to 35 new Jack in the Box restaurants, including approximately 18 company locations.
• 60 to 70 new Qdoba restaurants, including approximately 25 company locations.
• $55 to $65 million in gains on the sale of 175 to 225 Jack in the Box restaurants to franchisees, with $85 to $95 million in total proceeds resulting from the sales.
• Capital expenditures of $125 to $135 million.
• SG&A expense in the mid-10 percent range, excluding impairment and other charges of 70 to 80 basis points.
• Tax rate of approximately 35 percent.
• Diluted earnings per share of $1.40 to $1.65, with the range reflecting uncertainty in the timing of anticipated refranchising transactions as well as same-store sales volatility and commodity inflation. Gains from refranchising are expected to contribute from $0.70 to $0.83 to diluted earnings per share, as compared to $0.65 in fiscal 2010. Operating earnings per share, which the company defines as diluted earnings per share on a GAAP basis less gains from refranchising, are expected to range from $0.70 to $0.82 per diluted share. Diluted earnings per share includes approximately $0.10 to $0.12 of incremental re-image incentive payments to franchisees in fiscal 2011 as compared to fiscal 2010.

Conference call

The company will host a conference call for financial analysts and investors on Thursday, May 19, 2011, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:00 a.m. PT on May 19.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box^® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 19 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill^®, a leader in fast-casual dining, with more than 500 restaurants in 42 states and the District of Columbia. For more information, visit www.jackinthebox.com.

Safe harbor statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the success of new products and marketing initiatives, the impact of competition, unemployment, trends in consumer spending patterns, and timing of sales of Jack in the Box restaurants to franchisees. These factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at www.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(Unaudited)

The following table presents certain income and expense items included in the company’s condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding:

The following table summarizes the year-to-date changes in the number of Jack in the Box and Qdoba company-operated and franchise restaurants:

CONTACT:
Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, 858-571-2407
Media Contact:
Brian Luscomb, 858-571-2291