Jack in the Box Q4 Earnings Top Estimates, Revenues Lag, Stock Down

Jack in the Box Inc. JACK reported mixed fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line also declined year over year. Following the results, the company’s shares lost 3.3% in the after-hour trading session yesterday.JACK’s Earnings & Revenues DetailsIn the fiscal fourth quarter, operating earnings per share (EPS) was $1.16, beating the Zacks Consensus Estimate of $1.11. The metric rose 5.5% from $1.10 per share reported in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly revenues of $349.3 million missed the consensus mark of $358 million. The top line declined 6.2% on a year-over-year basis.Franchise rental revenues increased 1.5% year over year to $87.3 million. Franchise royalties and other revenues decreased 1.3% year over year to $54.5 million.Franchise contributions to advertising and other services revenues rose 0.5% year over year to $56.1 million. Company restaurant sales in the quarter was $151.4 million compared with $175 million reported in the prior-year quarter.JACK’s Comps DiscussionIn the quarter under review, company-owned same-store sales declined 2.2% year over year against 4.4% growth reported in the prior-year quarter.Same-store sales at franchised stores declined 2% year over year against 3.8% growth reported in the prior-year quarter.Systemwide same-store sales fell 2.1% year over year against 3.9% growth reported in the year-ago quarter. Reduced transactions and an unfavorable mix shift caused this downside.Del Taco PerformanceIn fourth-quarter fiscal 2024, company-owned same-store sales moved down 3% year over year, comprising the decline in franchise same-store and system-operated same-store sales of 4.2% and 3.9%, respectively.Operating Highlights of JACKSIn the fiscal fourth quarter, the total restaurant-level adjusted margin was 15.1% compared with 18% reported in the prior-year quarter. The decline was attributed to reduced transactions and rising costs from inflation, including higher wages, commodity prices and utility expenses, partially offset by menu price increases.Food and packaging costs (as a percentage of company restaurant sales) fell 80 basis points (bps) year over year to 28.4%.The total franchise level margin was 38.9% in the fiscal fourth quarter compared with 39.2% reported in the prior-year quarter.In the quarter under review, selling, general and administrative expenses accounted for 8.6% of total revenues compared with 11.7% in the prior-year quarter.JACK’s Balance SheetAs of Sept. 29, 2024, cash totaled $54.2 million compared with $185.9 million as of Oct. 1, 2023. Long-term debt (net of current maturities) totaled $1.69 billion as of Sept. 29, compared with $1.72 billion as of Oct. 1, 2023.In the fiscal fourth quarter, the company repurchased 0.3 million shares. As of Sept. 29, management announced the availability of $180 million under its share repurchase program.The company declared a cash dividend of 44 cents per share. The dividend will be paid out on Dec. 30, 2024, to its shareholders on record as of Dec. 12.JACK’s Fiscal 2025 OutlookFor fiscal 2025, the company anticipates adjusted EBITDA to be in the range of $288-$303 million. Depreciation and Amortization expenses are anticipated to be between $58 million and $60 million.Jack in the Box Restaurant Level Margin is expected to be 20-22%. The company expects same-store sales for Jack in the Box in the range of flat to up 1%, whereas for Del Taco segment this is expected to be flat to down 1%.Company-wide operating EPS for fiscal 2024 is expected to be in the range of $5.05-$5.45.Zacks Rank of JACKJACK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Retail-Wholesale ReleasesChipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.CMG reported adjusted EPS of 27 cents, surpassing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs, aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.SHAK’s fiscal third-quarter adjusted EPS was 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.The company reported an adjusted loss per share of 13 cents. The Zacks Consensus Estimate for the metric was 3 cents per share. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Janus Henderson Sustainable & Impact Core Bond ETF (JACK): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Shake Shack, Inc. (SHAK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks