News

Jack in the Box blames 'slow' September, aggressive market for rough Q4

November 20, 2018

With the sale of Qdoba wrapped up last March 21, Jack in the Box Inc. today reported 2018 fiscal year and Q4 earnings results, showing that the company's annual earnings from continuing operations fell from $128.6 million in 2017 ($4.16 per diluted share) to $104.3 million ($3.62 per diluted share) this year, according to a news release. 

Other key highlights of the annual and quarterly financial report include: 

• Q4 earnings from continuing operations fell to $18.3 million ($0.68 per diluted share) from $31.3 million ($1.05 per diluted share) last year. 
• Q4 operating EPS was $0.77 compared with $0.73 the prior year quarter. 
• Q4 adjusted EBITDA fell to $54 million from $62.2 million the prior year quarter. 
• FY18 operating EPS was $3.79 compared with $3.46 last year. 
• FY18 adjusted EBITDA was $264.2 million compared with $284.7 million last year.

"Same-store sales were positive in the fourth quarter, although we experienced a slowdown in September along with the rest of the category," Jack in the Box Chairman and CEO Lenny Comma, said in the release. "The competitive environment remains extremely aggressive, but we continue to avoid deep discounting which we believe is not in the best interests of the long-term health of the brand.

"We completed our refranchising initiative during the quarter with the sale of eight Jack in the Box restaurants, and our franchise mix now stands at approximately 94 percent. We remain firmly committed to returning cash to shareholders with the purchase of $140 million of stock in the quarter and $340 million during the 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 through fiscal year 2022 to our shareholders in the form of share repurchases and dividends."

Comma said long-term the brand is committed to improving operations consistency and investments that will maximize returns, while still evolving to meet customer's changing needs.