Operations

Jack in the Box Q1 outpaces analysts' estimates

Photo: iStock

February 18, 2021

Jack in the Box not only managed to come out of another quarter with earnings that beat analysts' estimates, but also grew its companywide quarter-year over quarter-year same-store sales 7.5% during the first quarter of this year, which ended Jan. 17. Sales rose to $338.5 million from $307.7 million the previous year.

The brand's quarterly earnings were $2.16 a share or $50.9 million, compared to estimates of $1.75 a share, marking the third time in four quarters that Jack in the Box has beaten analysts' predictions on this metric. Pre-pandemic in Q1 2020, Jack in the Box first-quarter earnings were $7.9 million or 33 cents a diluted share, according to its financial report.

Other Q1 2021 highlights include:

• Restaurant-level margin increased to 25.5% of restaurant sales, from 24.8% last year's quarter.
• Commodity costs increased 1.6% over the previous year's quarter, mostly due to produce, pork and oil increases.
• Revenue grew to $338.5 million from $307.7 million last year's quarter.
• Earnings from operations grew to $88.9 million, from $69.9 last year's quarter.
• Net earnings were nearly $50.9 million compared to $7.9 million last year.

"Our ongoing strategy continues to resonate with our guests with same-store sales significantly outperforming our peers," CEO Darin Harris said in a news release. "We saw strong same-store sales growth across all dayparts, with average check driven by premium products, including the launch of our new chicken sandwich and strips. This momentum has continued into the second quarter of 2021, with two-year trends through the first four weeks of the quarter remaining consistent with the first quarter."