Jack in the Box Inc. | $JACK Stock | Shares Soar After Positive Q3 Results

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Jack in the Box Inc. (NASDAQ: JACK)


Jack in the Box Inc. reported better than expected third quarter earnings and revenue that sent its shares up on Thursday morning.

During the third quarter, adjusted earnings per share increased by one cent but revenue went down by decreased about $60 million from the year-ago period.

In the final minutes of regular trading, JACK stock added $7.12, or 8.29% to trade at $92.97. The shares are down 10.2% over the last twelve months.

JACK Earnings & Outlook

Jack in the box posted adjusted earnings per share of $1 surpassing the consensus estimate of $0.88 per share. The firm posted adjusted earnings per share of $0.99 in the same period last year.

Jack in the Box has topped analyst EPS estimates two times over the last four quarters. The current Wall Street earnings per share estimate for the fourth quarter is $0.90 and $3.85 for the full year.

During the third quarter, revenue stood at $187.89 million compared to revenue of $246 million in the year-ago period.

Analysts had estimated revenue of $185 million. Over the last four quarters, the company has surpassed the consensus revenue estimates two times.

The current analyst revenue estimate for the current quarter is $175.26 million and $864.10 million for the full year.

Jack in the Box CEO Comments

Our third quarter operating results were in line with our expectations, with system same-store sales returning to positive territory. We are pleased that this momentum has continued into the fourth quarter without resorting to deep discounting that we believe is not in the best interests of the long-term health of the brand,” said Lenny Comma, Jack in the box chief executive.

With the refranchising of 42 Jack in the Box® restaurants in the third quarter and 7 thus far in the fourth quarter, our franchise mix now stands at approximately 94 percent. We expect to sell one additional restaurant in the fourth quarter which will complete our refranchising initiative.”

We remain firmly committed to returning cash to shareholders with the purchase of $100 million of stock in the quarter and $200 million thus far this year. Following the completion of our longer-term financing plans, we plan to increase our leverage up to 5.0 times EBITDA and expect to return more than $1 billion over the next four years to our shareholders in the form of share repurchases and dividends,” Mr. Comma continued.

Jack in the box Inc. Company profile

Jack in the Box, Inc. engages in operating and franchising a chain of quick-service and fast-casual restaurants. It operates through the Jack in the Box Restaurant and Qdoba Restaurant business segments.

The Jack in the Box Restaurant segment offers a broad selection of distinctive products including burgers like Jumbo Jack burgers, and product lines such as Buttery Jack burgers including the Brunchfast menu.

The Qdoba Restaurant segment features Mexican-themed food items including burritos, tacos, salads, and quesadillas. The company was incorporated in 1999 and is headquartered in San Diego.

Jack in the box competes with Papa John’s International, Inc., Texas Roadhouse, Inc., and Dave & Buster’s Entertainment, Inc. –CNN