Jack in the Box Posts Weaker-Than-Expected Results
February 17 2016 - 5:37PM
Dow Jones News
By Joshua Jamerson
Jack in the Box Inc. reported results that fell short of
expectations for its latest quarter as its namesake restaurants
struggled amid new offerings at rival chains.
Chairman and Chief Executive Lenny Comma said sales were
sluggish at Jack in the Box restaurants "as several competitors
began promoting aggressive value offers."
The company reported weakness in its breakfast and lunch
offerings during the period. Mr. Comma said a "competitor's
messaging around its launch of all-day breakfast had some impact on
our results, particularly in the 10:30 a.m. to noon period." Jack
in the Box also blamed the timing of its promotions.
In January, McDonald's Corp. posted its best U.S. quarterly
sales in nearly four years, driven by its recently launched all-day
breakfast menu.
Jack in the Box also narrowed its guidance for the year ending
in October, estimating earnings, excluding items, of $3.50 to $3.63
a share, compared with its earlier forecast of $3.55 to $3.70.
In all, for the quarter ended Jan. 17, the company earned $33.2
million, or 92 cents a share, compared with $35.8 million, or 91
cents a share, a year earlier.
Operating earnings were 93 cents a share. Analysts polled by
Thomson Reuters projected earnings of $1.03 a share on that
basis.
Revenue edged up 0.5% to $470.8 million. Analysts had projected
revenue of $475 million.
At the Jack in the Box brand, systemwide same-store sales rose
1.4%, with a 0.5% increase at company-owned restaurants.
The Qdoba chain posted a 1.8% systemwide increase, with
same-store sales up 1.5% at company-owned locations. The company
had projected 1% to 3% same-store sales increases for company-owned
Jack in the Box restaurants and growth at Qdoba company-owned
restaurants of up to 2%.
Qdoba, acquired in 2003, has posted stronger same-store sales
growth than the flagship chain in recent quarters.
For the current quarter, the company expects Jack in the Box
same-store sales to fall as much as 3% at company-owned
restaurants. For Qdoba, the company anticipates sales rising up to
3% at company restaurants.
Shares, halted in after hours trading, closed Wednesday up 2.7%
at $76.91.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
February 17, 2016 17:22 ET (22:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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