Jack In The Box (NASDAQ:JACK) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Jack In The Box (NASDAQ:JACK) issued its quarterly earnings results on Wednesday. The restaurant operator reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.02, FiscalAI reports. The firm had revenue of $254.26 million for the quarter, compared to analysts’ expectations of $256.55 million. Jack In The Box had a negative return on equity of 7.12% and a negative net margin of 8.69%.The firm’s revenue for the quarter was down 24.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.20 EPS.

Here are the key takeaways from Jack In The Box’s conference call:

• Same-store sales fell 3.8% in the second quarter, with transaction declines only partially offset by pricing and mix improvements.
• Margins were pressured by higher beef and other input costs, with restaurant-level margin dropping to 16.4% from 19.6% a year ago.
• Management said quarter-to-date sales are approaching flat and expects steady improvement through Q3, with Q4 planned to be the strongest quarter of the year.
• The company highlighted progress from its “barbell” strategy, combining value offers like Much Better Deals with premium items such as Smashed Jack sliders to lift transactions and checks.
• Jack in the Box is moving ahead with debt reduction and refinancing, including a planned early prepayment of about $99 million and expected real estate sale proceeds of $35 million-$45 million this year.

Jack In The Box Stock Down 11.6%

Shares of Jack In The Box stock traded down $1.48 during trading on Thursday, hitting $11.31. 1,193,126 shares of the company were exchanged, compared to its average volume of 745,074. Jack In The Box has a fifty-two week low of $8.91 and a fifty-two week high of $25.34. The stock has a market capitalization of $215.30 million, a price-to-earnings ratio of -1.84, a P/E/G ratio of 0.76 and a beta of 1.45. The firm has a 50 day moving average price of $12.28 and a 200 day moving average price of $16.74.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Invesco Ltd. raised its position in shares of Jack In The Box by 36.2% during the 4th quarter. Invesco Ltd. now owns 144,495 shares of the restaurant operator’s stock worth $2,738,000 after purchasing an additional 38,408 shares during the last quarter. Susquehanna Portfolio Strategies LLC raised its holdings in Jack In The Box by 19.4% in the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 107,267 shares of the restaurant operator’s stock valued at $2,033,000 after acquiring an additional 17,411 shares during the last quarter. Readystate Asset Management LP acquired a new position in Jack In The Box in the 4th quarter valued at $4,268,000. Inspire Investing LLC acquired a new position in Jack In The Box in the 4th quarter valued at $100,000. Finally, Janus Henderson Group PLC acquired a new position in Jack In The Box in the 4th quarter valued at $5,591,000. 99.79% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

JACK has been the topic of a number of analyst reports. Stifel Nicolaus lifted their price objective on Jack In The Box from $10.00 to $15.00 and gave the company a “hold” rating in a report on Thursday. The Goldman Sachs Group lifted their price objective on Jack In The Box from $15.00 to $17.00 and gave the company a “sell” rating in a report on Wednesday, January 28th. UBS Group set a $14.00 price objective on Jack In The Box in a report on Thursday. Piper Sandler lifted their price objective on Jack In The Box from $17.00 to $23.00 and gave the company a “neutral” rating in a report on Thursday, February 19th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $16.00 price objective (down from $17.00) on shares of Jack In The Box in a report on Thursday. Four analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Jack In The Box currently has a consensus rating of “Hold” and a consensus target price of $19.94.

Jack In The Box Company Profile

Jack in the Box (NASDAQ: JACK) is a publicly traded quick-service restaurant company best known for its Jack in the Box brand of fast-food restaurants. Founded in 1951 by Robert O. Peterson and headquartered in San Diego, California, the company has operated for decades as a franchisor and operator of drive-thru and dine-in restaurants. Its business model combines company-owned locations with franchise arrangements, and the company focuses on building brand recognition through menu innovation, marketing and service convenience.

The company’s core offerings center on a broad fast-food menu that includes hamburgers (notably the Jumbo Jack), tacos, breakfast items, sandwiches, salads, sides and specialty limited-time items.