Operations

Jack in the Box springs out of the box with Q4 earnings

Jack in the Box via Twitter

November 19, 2020

San Diego, California-based Jack in The Box turned in better-than-expected results for the fourth quarter this year, ending Sept. 27, according to a news release. Both the company earnings and revenue nicely surpassed estimates, with a nearly 70% increase in earnings per share quarter-year over quarter-year to $1.61, which leaves the estimate of $1.14 in the dust.

Revenue also kicked it up a notch in the final quarter by increasing more than 15% year-over-year to more than $255.4 million, according to the quarterly earnings report.

"Our ongoing strategy of offering guests value combined with indulgent and flavorful products continues to drive overall performance for the brand," CEO Darin Harris said in the report. "I am proud of the way our franchisees, the teams in our restaurants, our employees, and our partners have remained focused amidst this pandemic, and are delivering outstanding results. This momentum has continued into the first quarter of 2021, and I look forward to building on these learnings to enhance long-term performance of the company."

Other key Q4 highlights for the system, include:

• 12.2% growth in same-store sales.
• 21.9% increase in average check growth.
• 12.3% decrease in transactions.
• $37.9 million in earnings from continuing operations versus $22 million last year's quarter.
• Adjusted EBITDA grew from $66.9 million last year's Q4 to $78.4 million this year.
• Fiscal year 2020 adjusted EBITDA increased to $274.2 million this year from $269 million in 2019.

The company did not provide fiscal 2021 guidance, citing "the uncertainty associated with the COVID-19 pandemic," but said it would evaluate its financial status quarterly with "the intent to return to providing guidance once the visibility into sustained trends becomes more clear."

Jack in the Box Inc. operates and franchises more than 2,200 restaurants in 21 states and Guam.