Jack In The Box Earnings: Streak of Falling Revenue is Broken, Profit Jumps

Jack In The Box Inc. (NASDAQ:JACK) reported its results for the second quarter. Jack in the Box owns, operates and franchises quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants.

Investing Insights: What’s the Future of Microsoft’s Stock?

Jack In The Box Earnings Cheat Sheet for the Second Quarter

Results: Net income for Jack In The Box Inc. rose to $21.6 million (48 cents per share) vs. $6.8 million (13 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year-earlier quarter.

Revenue: Rose 0.3% to $506.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jack In The Box Inc. reported adjusted net income of 27 cents per share. By that measure, the company fell short of mean estimate of 32 cents per share. Analysts were expecting revenue of $502.9 million.

Quoting Management: Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 5.6 percent in the second quarter, driven by a combination of traffic growth and an increase in average check. We believe these results have been largely driven by the investments we have made to enhance the entire guest experience at the Jack in the Box brand, including the substantial completion of our system-wide re-image program in January.

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the fourth quarter of the last fiscal year, which saw a 10.5% decrease.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 8 cents.

Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the first quarter, net income declined 63.1% to $11.9 million.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 37 cents a share to 38 cents over the last sixty days. For the fiscal year, the average estimate has moved down from $1.35 a share to $1.34 over the last thirty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

THIS is What Kills Innovation>>

Uncle Sam Must Love These 30 Companies>>

Baidu Seeks This New Market in China>>