A burrito bowl by another name: Qdoba traffic gains as Chipotle wanes

NEW YORK-- Chipotle's woes could be Jack in the Box's gains. Well, Qdoba's to be exact.

Jack in the Box (JACK), may be known for its burgers, but its Qdoba division, which serves some of the same kinds of fare as Chipotle -- including tacos, burritos and burrito bowls -- was the star in a quarterly report that beat Wall Street's expectations.

"We were pleased with the solid sales performance at Qdoba company restaurants, which was driven by traffic growth, as well as with the improvement in labor costs and margins as compared to the first quarter," CEO Lenny Comma said in a statement accompanying its second-quarter results, which were released late Wednesday.

Sales at company-owned Qdoba locations open at least a year rose 3.1% in the second quarter helping to offset a 1% decline in the same measure at company-owned Jack in the Box stores. Total revenue rose to $361.15 million, slightly higher than the $358.12 million it made in the same quarter last year. Profit increased to $28.7 million, or 84 cents per share, up from $23 million, or 60 cents a year earlier. Analysts polled by S&P Global Market Intelligence expected earnings of 70 cents per share.

Qdoba's gains comes amid struggles for rival Chipotle (CMG), which reported its first quarterly loss in its history last month as the company tries to recover from several incidents of customers being sickened after eating at the chain.

Jack in the Box plans to open 50 to 60 more Qdobas this year. Half are expected to be company-owned. The company's shares rose nearly 15% to $74.88 in midday trading Thursday.

Follow Eli Blumenthal on Twitter @eliblumenthal