News

Jack in the Box Q1 earnings fall short

Photo: Jack in the Box

February 21, 2020

Jack in the Box Inc. failed to meet analysts' Q1 earnings estimates, with the brand's net income down to $7.9 million, or 33 cents a share after first quarter numbers were in, compared with $31.1 million net income, or $1.19 a share, the previous year's first quarter, according to financials released this week. Revenue did improve to $307.7 million from last year's $290.8 million and same-store sales grew, but the brand still missed analysts' estimates. 

Other Q1 results included:

• 2.9% increase in same-store sales.
• Average check total grew 2.6%. 
• Transactions grew 0.3%.
• Operating EPS was $1.17, compared with $1.35 in the prior year quarter. 

"Our same-store sales growth in the first quarter resulted from guests continuing to respond favorably to our breadth of promotions, including compelling bundles at competitive price points and innovation on products guests crave," Chairman and CEO Lenny Comma said in comments following the financial results release. "Looking to the remainder of 2020, we reiterate our annual targets as we leverage this strategy and continue making progress on our strategic initiatives and long-term goals. We remain committed to improving the guest experience through operations consistency and reducing wait times, targeting investments designed to maximize our returns and serving indulgent food our guests crave."

The brand reaffirmed its guidance for the current fiscal year that ends Sept. 27, with system same-store sales growth expected to be 1.5% to 3%, with restaurant-level margin of approximately 25% of company restaurant sales. Jack in the Box also expects to open 25-35 restaurants systemwide, mostly as franchise properties.