Jack in the Box Stock Up on Q1 Earnings Beat, Revenues Lag Estimates

Jack in the Box Inc. JACK reported mixed first-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics decreased on a year-over-year basis.Following the results, the company’s shares gained 10.8% in the after-hour trading session yesterday.JACK’s Earnings & Revenue DetailsIn the fiscal first quarter, operating earnings per share (EPS) was $1.92, beating the Zacks Consensus Estimate of $1.71. However, the metric fell 1.5% from $1.95 per share reported in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly revenues of $469.4 million missed the consensus mark of $470.2 million. The top line declined 3.7% on a year-over-year basis, due to the Del Taco refranchising transactions.Franchise rental revenues increased 3% year over year to $116.5 million. Franchise royalties and other revenues increased 1% year over year to $74 million.Franchise contributions to advertising and other services revenues rose 0.7% year over year to $77.5 million. Company restaurant sales in the quarter were $201.4 million, down from $224 million reported in the prior-year quarter.JACK’s Comps DiscussionIn the quarter under review, company-owned same-store sales decreased 0.4% year over year against the 2% growth reported in the prior-year quarter.Same-store sales at franchised stores increased 0.5% year over year compared with 0.7% growth reported in the prior-year quarter.Systemwide same-store sales increased 0.4% year over year compared with 0.8% growth reported in the year-ago quarter. Reduced transactions and an unfavorable mix shift caused this downside.Del Taco’s PerformanceIn first-quarter fiscal 2025, company-owned same-store sales moved down 2.5% year over year, comprising the decline in franchise same-store and system-operated same-store sales of 5.1% and 4.5%, respectively.Operating Highlights of JACKIn the fiscal first quarter, the total restaurant-level adjusted margin was 20%, flat year over year.Food and packaging costs (as a percentage of company restaurant sales) fell 300 basis points year over year to 25.6%.The total franchise level margin was 39.2% in the fiscal first quarter, down from 40% reported in the prior-year quarter.In the quarter under review, selling, general and administrative expenses accounted for 10.8% of total revenues, up from 9.5% in the prior-year quarter.JACK’s Balance SheetAs of Jan. 19, 2025, cash totaled $75 million compared with $24.7 million as of Sept. 29, 2024. Long-term debt (net of current maturities) totaled $1.69 billion as of Jan. 19, 2025, compared with $1.7 billion as of Sept. 29, 2024.In the fiscal first quarter, the company repurchased 0.1 million shares for $5 million. As of Jan. 19, management announced the availability of $175 million under its share repurchase program.On Feb. 21, 2025, the company declared a cash dividend of 44 cents per share. The dividend will be paid out on April 8, 2025, to its shareholders on record as of March 20.JACK’s Fiscal 2025 OutlookFor fiscal 2025, management 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. Company-wide Capital Expenditures in fiscal 2025 are now expected in the range of $100-$105 million, down from the prior expectation of $105-$115 million.Jack in the Box Restaurant Level Margin is expected to be 20-22%. The same-store sales for Jack in the Box are anticipated in the range of flat to up 1%, whereas for Del Taco segment, the figure is expected to be flat to down 1%.Company-wide operating EPS for fiscal 2025 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 ReleasesRestaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4% year over year. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant growth.McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate, but revenues missed the same. Both the top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. It reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. 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 Janus Henderson Sustainable & Impact Core Bond ETF (JACK): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Restaurant Brands International Inc. (QSR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks