We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jack in the Box (JACK) Q3 Earnings Lag Estimates, Revenues Top
Read MoreHide Full Article
Jack in the Box Inc. (JACK - Free Report) reported mixed third-quarter fiscal 2022 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The top line rose year over year, while the bottom line declined on a year-over-year basis. Revenues surpassed the consensus estimate for the second straight quarter. Following the results, the company’s shares rose 7.4% during the trading hours on Aug 10.
Let’s take a closer look at the numbers.
Earnings & Revenues Details
During the fiscal third quarter, adjusted earnings from continuing operations came in at $1.38 per share. The figure missed the Zacks Consensus Estimate of $1.43. The metric dropped 15.9% from $1.64 reported in the prior-year quarter.
Quarterly revenues of $398.3 million beat the Zacks Consensus Estimate of $394 million by 1.1%. The top line rallied 47.8% on a year-over-year basis. Franchise rental revenues fell 0.7% year over year to $80.1 million. Franchise royalties and other revenues increased 7.2% year over year to $52.1 million. Franchise contributions to advertising and other services revenues inched up 5.3% year over year to $50.9 million. Company restaurant sales increased to $215.2 million from $91.9 million reported in the prior-year quarter.
Comps Discussion
In the quarter under review, comps at Jack in the Box’s stores increased 3.5% year over year compared with 9% growth reported in the prior-year quarter. The upside in comps was primarily due to an increase in average checks partially offset by a decline in traffic.
Same-store sales at franchised stores fell 1% year over year against 10.3% growth reported in the prior-year quarter. System-wide same-store sales fell 0.6% year over year against a 10.2% gain reported in the year-ago quarter.
Del Taco Performance
During third-quarter 2022, same-store sales rose 3.5%, comprising of franchise same-store sales growth of 4.8% and company-operated same-store sales growth of 2.3%. During the quarter, the company closed five restaurants.
Operating Highlights
During the fiscal third quarter, restaurant-level adjusted margin came in at 15.8% compared with 25.4% reported in the prior-year quarter. The downside was driven by a rise in food and packaging costs, wage inflation of 13.2% and higher utilities and maintenance and repair costs.
Food and packaging costs (as a percentage of company restaurant sales) rose 120 bps year over year to 30.6%. Commodity costs during the quarter increased 16.8% year over year. The upside can be attributed to a rise in the price of proteins, sauces, oil and beverages.
The franchise level margin was 41.4% in the fiscal third quarter compared with 43.3% reported in the prior-year quarter.
During the quarter, selling, general and administrative expenses accounted for 10.1% of total revenues compared with 8.1% in the prior-year quarter.
Balance Sheet
As of July 10, 2022, cash totaled $65.9 million compared with $55.3 million as of Oct 3, 2021. Inventories during the quarter came in at $5.7 million compared with $2.3 million as of Oct 3, 2021. Long-term debt (net of current maturities) totaled $1,806.1 million as of Jul 10, 2022 compared with $1,273.4 million at the end of Oct 3, 2021.
During the fiscal third quarter, the company did not repurchase any shares but plans to complete $25 million in share repurchases during the fourth quarter of fiscal 2022.
The company declared a cash dividend of 44 cents per share. The dividend will be paid out on Sep 9, 2022, to shareholders on record as of Aug 24, 2022.
Fiscal 2022 Outlook
Company-wide CapEx and Other Investments (including Del Taco) in fiscal 2022 are expected in the range of $50-55 million compared with the earlier estimate of $75-80 million. Overall Restaurant Level Margin in fiscal 2022 is anticipated to be approximately 16% compared with the prior estimate of nearly 17%.
Jack in the Box currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Potbelly’s 2022 sales and EPS suggests growth of 14.1% and 90.4%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2. ARCO has a long-term earnings growth of 34.4%. Shares of the company have increased 40.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 25.7% and 120.8%, respectively, from the year-ago period’s levels.
Dollar Tree carries a Zacks Rank #2. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average. The stock has gained 62.3% in the past year.
The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and EPS suggests growth of 6.7% and 40.5%, respectively, from the corresponding year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Jack in the Box (JACK) Q3 Earnings Lag Estimates, Revenues Top
Jack in the Box Inc. (JACK - Free Report) reported mixed third-quarter fiscal 2022 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The top line rose year over year, while the bottom line declined on a year-over-year basis. Revenues surpassed the consensus estimate for the second straight quarter. Following the results, the company’s shares rose 7.4% during the trading hours on Aug 10.
Let’s take a closer look at the numbers.
Earnings & Revenues Details
During the fiscal third quarter, adjusted earnings from continuing operations came in at $1.38 per share. The figure missed the Zacks Consensus Estimate of $1.43. The metric dropped 15.9% from $1.64 reported in the prior-year quarter.
Quarterly revenues of $398.3 million beat the Zacks Consensus Estimate of $394 million by 1.1%. The top line rallied 47.8% on a year-over-year basis. Franchise rental revenues fell 0.7% year over year to $80.1 million. Franchise royalties and other revenues increased 7.2% year over year to $52.1 million. Franchise contributions to advertising and other services revenues inched up 5.3% year over year to $50.9 million. Company restaurant sales increased to $215.2 million from $91.9 million reported in the prior-year quarter.
Comps Discussion
In the quarter under review, comps at Jack in the Box’s stores increased 3.5% year over year compared with 9% growth reported in the prior-year quarter. The upside in comps was primarily due to an increase in average checks partially offset by a decline in traffic.
Same-store sales at franchised stores fell 1% year over year against 10.3% growth reported in the prior-year quarter. System-wide same-store sales fell 0.6% year over year against a 10.2% gain reported in the year-ago quarter.
Del Taco Performance
During third-quarter 2022, same-store sales rose 3.5%, comprising of franchise same-store sales growth of 4.8% and company-operated same-store sales growth of 2.3%. During the quarter, the company closed five restaurants.
Operating Highlights
During the fiscal third quarter, restaurant-level adjusted margin came in at 15.8% compared with 25.4% reported in the prior-year quarter. The downside was driven by a rise in food and packaging costs, wage inflation of 13.2% and higher utilities and maintenance and repair costs.
Food and packaging costs (as a percentage of company restaurant sales) rose 120 bps year over year to 30.6%. Commodity costs during the quarter increased 16.8% year over year. The upside can be attributed to a rise in the price of proteins, sauces, oil and beverages.
The franchise level margin was 41.4% in the fiscal third quarter compared with 43.3% reported in the prior-year quarter.
During the quarter, selling, general and administrative expenses accounted for 10.1% of total revenues compared with 8.1% in the prior-year quarter.
Balance Sheet
As of July 10, 2022, cash totaled $65.9 million compared with $55.3 million as of Oct 3, 2021. Inventories during the quarter came in at $5.7 million compared with $2.3 million as of Oct 3, 2021. Long-term debt (net of current maturities) totaled $1,806.1 million as of Jul 10, 2022 compared with $1,273.4 million at the end of Oct 3, 2021.
During the fiscal third quarter, the company did not repurchase any shares but plans to complete $25 million in share repurchases during the fourth quarter of fiscal 2022.
The company declared a cash dividend of 44 cents per share. The dividend will be paid out on Sep 9, 2022, to shareholders on record as of Aug 24, 2022.
Fiscal 2022 Outlook
Company-wide CapEx and Other Investments (including Del Taco) in fiscal 2022 are expected in the range of $50-55 million compared with the earlier estimate of $75-80 million. Overall Restaurant Level Margin in fiscal 2022 is anticipated to be approximately 16% compared with the prior estimate of nearly 17%.
Jack in the Box currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Potbelly Corporation (PBPB - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Dollar Tree Inc. (DLTR - Free Report) .
Potbelly has a Zacks Rank #2 (Buy), at present. PBPB has a trailing four-quarter earnings surprise of 26.2%, on average. Shares of PBPB have declined 25% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Potbelly’s 2022 sales and EPS suggests growth of 14.1% and 90.4%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2. ARCO has a long-term earnings growth of 34.4%. Shares of the company have increased 40.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 25.7% and 120.8%, respectively, from the year-ago period’s levels.
Dollar Tree carries a Zacks Rank #2. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average. The stock has gained 62.3% in the past year.
The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and EPS suggests growth of 6.7% and 40.5%, respectively, from the corresponding year-ago period’s levels.