Jack in the Box (JACK) Misses Q3 EPS by 6c, Miss on Revenues

Jack in the Box (NASDAQ: JACK) reported Q3 EPS of $0.99, $0.06 worse than the analyst estimate of $1.05. Revenue for the quarter came in at $357.85 million versus the consensus estimate of $361.13 million.

Fourth quarter fiscal year 2017 guidance

• Same-store sales of flat to down 2.0 percent at Jack in the Box system restaurants versus a 2.0 percent increase in same-store sales in the year-ago quarter.
• Same-store sales of flat to down 2.0 percent at Qdoba company restaurants versus a 1.2 percent increase in the year-ago quarter.

Fiscal year 2017 guidance

• Same-store sales increase of approximately 0.5 percent at Jack in the Box system restaurants.
• Same-store sales decrease of approximately 2.0 to 2.5 percent at Qdoba company restaurants.
• Commodity costs of approximately flat for both Jack in the Box and Qdoba.
• Consolidated restaurant operating margin of approximately 18.0 to 18.5 percent, depending on the timing of refranchising transactions and the margins associated with the restaurants sold.
• SG&A as a percentage of revenues of approximately 11.0 percent as compared to 12.7 percent in fiscal 2016.
• Impairment and other charges as a percentage of revenues of approximately 70 basis points, excluding restructuring charges.
• Approximately 20 to 25 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.
• Approximately 45 new Qdoba restaurants opening system-wide, of which approximately 25 are expected to be company locations.
• Capital expenditures of approximately $80 to $90 million.
• Tax rate of approximately 37.0 percent.
• Operating earnings per share, which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, ranging from $4.00 to $4.15 (which includes approximately $0.10 of costs related to the 31 franchised Jack in the Box restaurants taken back in the third quarter).

For earnings history and earnings-related data on Jack in the Box (JACK) click here.

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