Jack in the Box, Inc. (NASDAQ: JACK) reported Q2 EPS of $0.51, $0.01 worse than the analyst estimate of $0.52. Revenue for the quarter came in at $340.9 million versus the consensus estimate of $338.31 million. System wide comps were up 0.7% for Jack in the Box and 7% for Qdoba.

Jack in the Box, Inc. sees Q2 2014 EPS of $2.25-$2.35, versus prior guidance of $2.2-$2.35 and the consensus of $2.36.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 6, 2014, and the fiscal year ending September 28, 2014. Fiscal 2014 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.

Third quarter fiscal year 2014 guidance

Same-store sales are expected to increase approximately 2.0 to 3.0 percent at Jack in the Box company restaurants versus a 1.2 percent increase in the year-ago quarter.

Same-store sales are expected to increase approximately 3.0 to 4.0 percent at Qdoba company restaurants versus a 0.5 percent increase in the year-ago quarter.

Fiscal year 2014 guidance

Same-store sales are expected to increase approximately 1.5 to 2.5 percent at Jack in the Box company restaurants.
Same-store sales are now expected to increase approximately 3.0 to 4.0 percent at Qdoba company restaurants.
Overall commodity costs are now expected to increase by approximately 1 to 2 percent for the full year.
Restaurant operating margin for the full year, which reflects an approximate 20 basis points impact from the July 2014 minimum wage increase in California, is expected to be approximately 18.0 to 18.5 percent, depending on same-store sales and commodity inflation.
SG&A as a percentage of revenue is expected to be approximately 13.5 to 14.0 percent as compared to 14.8 percent in fiscal 2013. G&A as a percentage of system-wide sales is expected to decline to approximately 3.8 percent in fiscal 2014 from 4.3 percent in fiscal 2013.
Impairment and other charges as a percentage of revenue are expected to be approximately 70 basis points, excluding restructuring charges.
Approximately 10 new Jack in the Box restaurants are expected to open, including approximately 3 company locations.
Approximately 50 new Qdoba restaurants are expected to open, of which approximately 20 are expected to be company locations.
Capital expenditures are expected to be $75 to $85 million.

The tax rate is expected to be approximately 37 to 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, are now expected to range from $2.25 to $2.35 in fiscal 2014 as compared to operating earnings per share of $1.82 in fiscal 2013.

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