Jack In The Box (JACK) Q1 Earnings Lag, Revenues Top Estimates
Zacks Investment Research | Feb 19, 2020 09:51PM ET
Jack in the Box Inc. (NASDAQ:JACK) reported first-quarter fiscal 2020 results, wherein earnings missed the Zacks Consensus Estimate, while revenues beat the same. Following the quarterly results, shares of the company declined 1.8% in after-hours trading on Feb 19.
Adjusted earnings from continuing operations came in at $1.17 per share, missing the Zacks Consensus Estimate of $1.37 and declined 13.3% on a year-over-year basis. However, total revenues of $307.7 million surpassed the consensus mark of $296 million and improved 5.8% year over year.
Comps Discussion
Comps at Jack in the Box’s stores improved 2.9% compared with the prior-year quarter’s 0.5% growth. This upside can be attributed to average check and transactions growth of 2.6% and 0.3%, respectively. In fourth-quarter fiscal 2019, the company had reported 3.5% comps growth.
Same-store sales at franchised stores increased 1.6% compared with a 0.1% decline in the prior-year quarter. In the last reported quarter, the metric was up 3%. Meanwhile, system-wide same-store sales improved 1.7% against a decline of 0.1% in the year-ago quarter. In fourth-quarter fiscal 2019, system-wide same-store sales rose 3%.
Operating Highlights
Restaurant-level adjusted margin contracted 140 bps in the first quarter from the year-ago quarter to 24.8%. The downside was primarily due to wage and commodity inflation, which offset benefits from decline in maintenance and repair expenses. Further, food and packaging costs increased 100 basis points owing to higher ingredient costs. Franchise level margin was 38.5% compared with 42.6% in the prior-year quarter.
Jack In The Box Inc. Price, Consensus and EPS Surprise
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