Jack In The Box's (JACK) Stock Down Post Q4 Earnings Miss
Zacks Investment Research | Nov 29, 2017 08:56PM ET
Jack in the Box Inc. (NASDAQ:JACK) reported fourth-quarter fiscal 2017 results, with earnings and revenues missing the Zacks Consensus Estimate.
Consequently, the company’s shares lost more than 5% in after-hours trading on Nov 29 owing to disappointing comparable-store sales (comps) at the Qdoba brand.
Meanwhile, Morgan Stanley & Co (NYSE:MS). LLC continues to assist the board in its assessment of possible alternatives with respect to the Qdoba brand coupled with other ways to boost shareholders’ value.
Notably, there is no assurance that the evaluation process will result in any transaction and the company has also not set a timeline for conclusion of the evaluation process.
Earnings and Revenue Discussion
Adjusted earnings per share of 73 cents lagged the Zacks Consensus Estimate of 89 cents by 18%. Further, the bottom line declined 24.3% year over year primarily due to lower revenues and restaurant operating margins.
Revenues of $338.7 million missed the Zacks Consensus Estimate of $342.5 million by 1.1%. Moreover, the top line fell 15% on a year-over-year basis owing to lower Jack in the Box and Qdoba brand sales.
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