Jack in the Box (JACK) Misses Q1 EPS by 10c
Jack in the Box (NASDAQ: JACK) reported Q1 EPS of $0.93, $0.10 worse than the analyst estimate of $1.03. Revenue for the quarter came in at $470.8 million versus the consensus estimate of $475.49 million.
Jack in the Box system same-store sales increased 1.4 percent for the quarter. Company same-store sales increased 0.5 percent, with average check up 3.4 percent.
Guidance
The following guidance and underlying assumptions reflect the company’s current expectations for the second quarter ending April 10, 2016, and fiscal year ending October 2, 2016. Fiscal 2016 is a 53-week year, with 16 weeks in the first quarter, 12 weeks in each of the second and third quarters, and 13 weeks in the fourth quarter.
Second quarter fiscal year 2016 guidance
- Same-store sales ranging from approximately down 3.0 percent to flat at Jack in the Box company restaurants versus a 7.4 percent increase in the year-ago quarter. The low end of the sales guidance for the second quarter reflects trends through the first four weeks as compared to the same period of the prior year when sales growth exceeded 10 percent.
- Same-store sales ranging from approximately flat to up 3.0 percent at Qdoba company restaurants versus a 7.0 percent increase in the year-ago quarter. Excluding the first week of the current quarter, which was negatively impacted by weather, sales trends are tracking at the low end of the guidance range as compared to the first four weeks of the prior year when sales growth exceeded 14 percent.
Fiscal year 2016 guidance
- Same-store sales increase of approximately 1.0 to 2.0 percent at Jack in the Box company restaurants.
- Same-store sales increase of approximately 2.0 to 3.0 percent at Qdoba company restaurants.
- Commodity deflation of approximately 2 percent for Jack in the Box and approximately 4 percent at Qdoba.
- Restaurant operating margin of approximately 20.0 to 20.5 percent.
- SG&A as a percentage of revenue of approximately 13.0 to 13.5 percent as compared to 14.4 percent in fiscal 2015.
- Impairment and other charges as a percentage of revenue of approximately 80 basis points.
- Approximately 20 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.
- Approximately 50 to 60 new Qdoba restaurants, of which approximately half are expected to be company locations.
- Capital expenditures of $100 million to $120 million.
- Tax rate of approximately 38 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 $3.50 to $3.63 in fiscal 2016 as compared to operating earnings per share of $3.00 in fiscal 2015. The estimated benefit of the 53rd week in fiscal 2016 is approximately $0.08 per diluted share.
*** The Street sees FY16 EPS of $3.63.
For earnings history and earnings-related data on Jack in the Box (JACK) click here.