Jack in the Box (JACK) Tops Q2 EPS by 7c, Comps Fall 0.8%, Offers Guidance
Jack in the Box (NASDAQ: JACK) reported Q2 EPS of $0.98, $0.07 better than the analyst estimate of $0.91. Revenue for the quarter came in at $369.5 million versus the consensus estimate of $369.33 million.
| 12 Weeks Ended | 28 Weeks Ended | ||||||||||||
April 16,2017 * | April 10,2016 | April 16,2017 * | April 10,2016 | ||||||||||
| Jack in the Box: | |||||||||||||
| Company | (2.4)% | (1.0)% | (0.7)% | (0.2)% | |||||||||
| Franchise | (0.4)% | 0.3% | 2.0% | 1.1% | |||||||||
| System | (0.8)% | 0.0% | 1.4% | 0.8% | |||||||||
| Qdoba: | |||||||||||||
| Company | (5.9)% | 3.1% | (3.4)% | 2.2% | |||||||||
| Franchise | (0.3)% | 1.2% | (0.3)% | 1.8% | |||||||||
| System | (3.2)% | 2.1% | (1.9)% | 2.0% | |||||||||
*Note: Due to the transition from a 53-week to a 52-week fiscal year, year-over-year fiscal period comparisons are offset by one week. The change in same-store sales presented in the 2017 column uses comparable calendar periods to balance the one-week shift and to provide a clearer year-over-year comparison. | |||||||||||||
Jack in the Box system same-store sales decreased 0.8 percent for the quarter and lagged the QSR sandwich segment by 1.5 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 16, 2017. Included in this segment are 16 of the top QSR sandwich and burger chains in the country. Company same-store sales decreased 2.4 percent in the second quarter driven by a 7.1 percent decrease in transactions, partially offset by average check growth of 4.7 percent.
Qdoba same-store sales decreased 3.2 percent system-wide and 5.9 percent for company restaurants in the second quarter. Company same-store sales reflected an 8.2 percent decrease in transactions, partially offset by growth in average check and catering sales.
GUIDANCE:
Jack in the Box sees FY2017 EPS of $4.10-$4.30, versus the consensus of $4.35.
- Same-store sales increase of approximately 1.0 percent at Jack in the Box system restaurants.
- Same-store sales decrease of approximately 1.0 to 2.0 percent at Qdoba company restaurants.
- Commodity costs of approximately flat for both Jack in the Box and Qdoba.
- Consolidated restaurant operating margin of approximately 19.0 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 50 to 60 new Qdoba restaurants, of which approximately 30 are expected to be company locations.
- Capital expenditures of approximately $100 million.
- Tax rate of approximately 38.0 to 39.0 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 $4.10 to $4.30.
Third quarter fiscal year 2017 guidance
- Same-store sales of up 1.0 to down 1.0 percent at Jack in the Box system restaurants versus a 1.1 percent increase in same-store sales in the year-ago quarter.
- Same-store sales of up 1.0 to down 1.0 percent at Qdoba company restaurants versus a 1.0 percent increase in the year-ago quarter.
For earnings history and earnings-related data on Jack in the Box (JACK) click here.