Jack In The Box misses 1Q profit forecasts
SAN DIEGO (AP) — Jack In The Box Inc. on Wednesday reported lower-than-expected quarterly results and issued a weak outlook, sending its shares tumbling in extended trading.
The San Diego-based company said it earned a profit of $33.2 million, or 92 cents per share, in its fiscal first quarter ended Jan. 17. Earnings, adjusted for one-time gains and costs, came to 93 cents per share.
The results missed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.03 per share.
The fast food company posted revenue of $470.8 million in the period. That was below the average analyst estimate of $475.4 million, according to FactSet.
A year earlier Jack in the Box earned $35.8 million, or 91 cents per share, on revenue of $468.6 million.
Sales in restaurants open at least a year — a key metric of a retailer’s health — rose 1.4 percent at its namesake Jack in the Box chain and 1.8 percent at the company’s Qdoba Mexican food restaurants.
The company blamed its lackluster results in part at competitors’ “aggressive value offers” and the launch of all-day breakfast at McDonald’s.
The company added that it wants to continue its refranchising strategy and increase its Jack in the Box franchise ownership to at least 90 percent. Over the past five years, it has increased franchise ownership of the Jack in the Box system from 57 percent at the end of fiscal 2010 to 82 percent at the end of fiscal 2015. The move means that the corporation relies more heavily on franchising fees and gets a percentage of sales in royalty fees, no matter what.
Looking ahead, Jack In The Box expects full-year earnings in the range of $3.50 to $3.63 per share. Analysts expect $3.63 per share, according to FactSet.
Jack In The Box shares have increased slightly since the beginning of the year. They closed Wednesday at $76.91, a decrease of 13 percent in the last 12 months.
In after-market trading after the release of the earnings report, the stock slid almost 20 percent, or $15.17, to $61.74.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on JACK at http://www.zacks.com/ap/JACK
Keywords: Jack In The Box, Earnings Report