Earnings trends are extremely important when evaluating stocks. At Wall St. Cheat Sheet, we view increasing earnings quarter-over-quarter as a simple way to gauge whether costs and the business model are stable. Then we like to analyze whether the company is outperforming peers in the sector. This is what we call the “E-Squared” investment analysis (‘E = Earnings Are Increasing Quarter-Over-Quarter’ + ‘E = Excellent Relative Performance Versus Peers and Sector’).
Stocks with improving earnings metrics are worthy of your extra attention. Click here to discover our CHEAT SHEET stock picks now!
Here’s your Cheat Sheet to how the top 4 fast food stocks rank via earnings trends:
Jack in the Box Inc. (NASDAQ:JACK): Current Price $31.70
|Revenue ($) in millions||2,540||2,471||1,900||1,662||1,545|
|Diluted EPS ($)||2.01||2.05||1.26||1.61||1.28|
We’re not impressed with the way revenue and EPS has fallen off between 2009 and 2012 at Jack in the Box.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||652.72||506.63||501.82||-116.14||465.52|
|Diluted EPS ($)||0.27||0.48||0.26||0.27||0.47|
The company, however, got its act together in the December 2012 quarter, showing a sharp jump in revenue and EPS. It remains on our radar…