Jack In The Box Inc. Earnings Cheat Sheet: Beats Estimates

Jack In The Box Inc. (NASDAQ:JACK) reported net income above Wall Street’s expectations for the fourth quarter. Jack in the Box owns, operates and franchises quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Jack In The Box Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Jack In The Box Inc. rose to $22.7 million (49 cents per share) vs. $4 million (7 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Fell 10.5% to $504.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: JACK beat the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $491.5 million.

Quoting Management: Linda A. Lang, chairman, chief executive officer and president, said, “Jack in the Box company same-store sales increased 5.8 percent in the fourth quarter, ahead of our expectations, as sales and traffic accelerated in the last two months of the quarter. On a two-year cumulative basis, this represented our fifth consecutive quarter of sequentially improving company same-store sales trends. 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.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 0.8% to $519.3 million in the third quarter. The figure fell 4.6% in the second quarter from the year earlier and dropped 2.4% in the first quarter from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the third quarter, it missed the mark by 2 cents, and in the second quarter, it fell short by 9 cents.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the third quarter, net income fell 22.7% while the figure dropped in the second quarter.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 49 cents per share to 45 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year has remained at $1.54 per share.

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Good Times Restaurants Inc. (NASDAQ:GTIMD), Yum! Brands, Inc. (NYSE:YUM), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Sonic Corporation (NASDAQ:SONC), Wendy’s Arby’s Group Inc. (NYSE:WEN), Morgan’s Foods, Inc. (MRFD), Ruby Tuesday, Inc. (NYSE:RT), Panera Bread Company (NASDAQ:PNRA), and Starbucks Corporation (NASDAQ:SBUX).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

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