Jack in the Box (JACK) Tops Q3 EPS by 3c
Jack in the Box (NASDAQ: JACK) reported Q3 EPS of $0.76, $0.03 better than the analyst estimate of $0.73. Revenue for the quarter came in at $359.6 million versus the consensus estimate of $359.08 million.
Increase in same-store sales:
12 Weeks EndedJuly 5, 2015 | 12 Weeks EndedJuly 6, 2014 | 40 Weeks EndedJuly 5, 2015 | 40 Weeks EndedJuly 6, 2014 | |||||
| Jack in the Box: | ||||||||
| Company | 5.5% | 2.4% | 5.4% | 1.8% | ||||
| Franchise | 7.9% | 2.4% | 7.0% | 1.7% | ||||
| System | 7.3% | 2.4% | 6.6% | 1.7% | ||||
| Qdoba: | ||||||||
| Company | 6.6% | 7.2% | 9.1% | 5.2% | ||||
| Franchise | 9.0% | 7.7% | 11.4% | 5.6% | ||||
| System | 7.7% | 7.5% | 10.2% | 5.4% | ||||
“Jack in the Box system same-store sales increased 7.3 percent for the quarter, and company same-store sales increased 5.5 percent. Transactions drove approximately 30 percent of the company growth, and sales were strong across all dayparts, with breakfast and dinner the best performing, followed closely by late night,” Comma said.
Guidance
The following guidance and underlying assumptions reflect the company’s current expectations for the fourth quarter and fiscal year ending September 27, 2015. Fiscal 2015 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.
Fourth quarter fiscal year 2015 guidance
- Same-store sales increase of approximately 3.5 to 5.5 percent at Jack in the Box company restaurants versus a 3.1 percent increase in the year-ago quarter.
- Same-store sales increase of approximately 5.0 to 7.0 percent at Qdoba company restaurants versus a 7.1 percent increase in the year-ago quarter.
Fiscal year 2015 guidance
- Same-store sales increase of approximately 5.0 to 5.5 percent at Jack in the Box company restaurants.
- Same-store sales increase of approximately 8.0 to 8.5 percent at Qdoba company restaurants.
- Overall commodity cost inflation of approximately 1.5 to 2.0 percent for the full year.
- Consolidated restaurant operating margin of approximately 20.0 percent, depending on same-store sales and commodity inflation.
- SG&A as a percentage of revenue of approximately 14.0 percent as compared to 13.9 percent in fiscal 2014. The increase in fiscal 2015 reflects higher incentive compensation, higher pre-opening costs related to Qdoba growth, and $5.0 million of higher pension expense.
- Impairment and other charges as a percentage of revenue of approximately 90 basis points, excluding restructuring charges. This includes charges relating to the replacement of beverage equipment, which are expected to negatively impact fiscal 2015 diluted earnings per share by approximately $0.06, including approximately $0.03 in the fourth quarter.
- Approximately 15 to 20 new Jack in the Box restaurants opening system-wide.
- Approximately 40 to 45 new Qdoba restaurants, of which approximately 15 to 20 are expected to be company locations.
- Capital expenditures of $90 to $100 million.
- Tax rate of approximately 37.0 to 37.5 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 $2.97 to $3.03 in fiscal 2015 as compared to operating earnings per share of $2.45 in fiscal 2014. This guidance includes the expected $0.06 charge relating to the replacement of beverage equipment. (The Street sees FY15 EPS of $2.99.)
For earnings history and earnings-related data on Jack in the Box (JACK) click here.