Categories Earnings, Retail

Jack in the Box reports disappointing 2Q results

Jack in the Box (JACK) second quarter results failed to meet Street estimates. The company reported its results Wednesday after the bell with both revenue and earnings disappointing investors. Revenue tumbled 21% to $209.8 million, while operating earnings of $0.80 per share declined 7% over the prior year period. Shares of the fast-food restaurant chain were down nearly 3% during extended hours of trading.

On a consolidated basis, comp-store sales inched down 0.1% due to lower footfalls and muted demand, while company-operated chain’s same-store sales grew 0.9% due to improvement in higher-margin product sales, offset by dwindling transactions.

The hamburger chain’s operating margins saw 300 basis point improvement touching 22.7% due to refranchising-related benefits and premium product sales, offset by an increase in expenses. For the third quarter and full year, the company expects its same-store sales to be nearly flat to up 1%.

Jack in the Box second quarter 2018 earnings

Last week, the company entered into a partnership with Grubhub, which would help customers to order Jack’s foods through the Grubhub online platform. This deal is expected to augur well for Jack to expand its geographical presence and improve the top-line.

The company’s board has given the nod last week for an additional $200 million share repurchase program.

Jack’s shares are down nearly 7% so far in this year and more than 10% in the last 12 months.

Last month, Jack’s peer McDonald’s (MCD) reported its first quarter results beating analysts’ estimates, aided by an increase in franchised margin dollars and tax reforms.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top