GENERAL
All comparisons between 2012 and 2011 refer to the 12-weeks ("quarter") and 28-weeks ("year-to-date") ended April 15, 2012 and April 17, 2011, respectively, unless otherwise indicated.
For an understanding of the significant factors that influenced our performance during the quarterly periods ended April 15, 2012 and April 17, 2011, our Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with the Condensed Consolidated Financial Statements and related Notes included in this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended October 2, 2011.
Our MD&A consists of the following sections:
• Overview - a general description of our business and fiscal 2012 highlights.

• Results of operations - an analysis of our consolidated statements of earnings for the periods presented in our condensed consolidated financial statements.

• Liquidity and capital resources - an analysis of our cash flows including capital expenditures, share repurchase activity, known trends that may impact liquidity and the impact of inflation.

• Discussion of critical accounting estimates - a discussion of accounting policies that require critical judgments and estimates.

• New accounting pronouncements - a discussion of new accounting pronouncements, dates of implementation and the impact on our consolidated financial position or results of operations, if any.

• Cautionary statements regarding forward-looking statements - a discussion of the risks and uncertainties that may cause our actual results to differ materially from any forward-looking statements made by management.

OVERVIEW
As of April 15, 2012, we operated and franchised 2,242 Jack in the Box quick-service restaurants, primarily in the western and southern United States, and 605 Qdoba Mexican Grill ("Qdoba") fast-casual restaurants throughout the United States.
Our primary source of revenue is from retail sales at Jack in the Box and Qdoba company-operated restaurants. We also derive revenue from Jack in the Box and Qdoba franchise restaurants, including royalties (based upon a percent of sales), rents, franchise fees and distribution sales of food and packaging commodities. In addition, we recognize gains from the sale of company-operated restaurants to franchisees, which are presented as a reduction of operating costs and expenses, net in the accompanying condensed consolidated statements of earnings.
The following summarizes the most significant events occurring in fiscal 2012 and certain trends compared to a year ago:
• Restaurant Sales - Sales at restaurants open more than one year ("same-store sales") increased (decreased) as follows:

                                                            Quarter                             Year-to-Date
                                               April 15, 2012     April 17, 2011     April 15, 2012      April 17, 2011
Jack in the Box:
Company                                               5.6 %             0.8  %             5.5 %                1.2 %
Franchise                                             3.6 %            (0.3 )%             3.1 %                0.4 %
System                                                4.2 %             0.1  %             3.8 %                0.7 %
Qdoba:
Company                                               3.8 %             5.1  %             3.7 %                5.5 %
Franchise                                             2.2 %             6.4  %             3.2 %                6.5 %
System                                                3.0 %             6.0  %             3.4 %                6.2 %

• Commodity Costs - Commodity costs increased approximately 1.8% and 6.7%, at our Jack in the Box and Qdoba restaurants, respectively, in the quarter and 4.7% and 10.2%, respectively, year-to-date compared to a year ago. We expect our overall commodity costs to increase approximately 3%-4% in fiscal 2012.

• New Unit Development - We continued to grow our brands with the opening of new company-operated and franchise-operated restaurants. Year-to-date, we opened 23 Jack in the Box locations and 23 Qdoba locations system-wide.

• Franchising Program - Qdoba and Jack in the Box franchisees opened a total of 29 restaurants year-to-date. Our Jack in the Box system was approximately 73% franchised at the end of the second quarter and we plan to further increase franchise ownership to approximately 80% over the next couple of years.