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Jack in the Box Earnings: What To Look For From JACK

StockStory - Tue Feb 20, 1:01AM CST

JACK Cover Image

Fast-food chain Jack in the Box (NASDAQ:JACK) will be reporting results tomorrow after market close. Here's what to expect.

Last quarter Jack in the Box reported revenues of $372.5 million, down 7.5% year on year, in line with analyst expectations. It was a weak quarter for the company, with EPS missing Wall Street's estimates, driven by looser cost controls and lower-than-expected same-store sales at its flagship Jack in the Box restaurants and Del Taco. In addition its full-year earnings and adjusted EBITDA forecast underwhelmed.

Is Jack in the Box buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Jack in the Box's revenue to decline 8.6% year on year to $481.6 million, a deceleration on the 52.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.96 per share.

Jack in the Box Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing nine downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Jack in the Box's peers in the traditional fast food segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. McDonald's delivered top-line growth of 8.1% year on year, missing analyst estimates by 0.7% and Restaurant Brands reported revenues up 7.8% year on year, exceeding estimates by 1%. McDonald's traded down 1.7% on the results, and Restaurant Brands was flat on the results.

Read our full analysis of McDonald's's results here and Restaurant Brands's results here.

There has been positive sentiment among investors in the traditional fast food segment, with the stocks up on average 2.9% over the last month. Jack in the Box is down 4.9% during the same time, and is heading into the earnings with analyst price target of $88.3, compared to share price of $75.9.

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