Jack in the Box Q2 Earnings Beat, Revenues Lag Estimates, Stock Down

Jack in the Box Inc. JACK reported mixed second-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics decreased on a year-over-year basis.Following the results, the company’s shares declined 2% in the after-hour trading session yesterday.JACK’s Earnings & Revenue DetailsIn the fiscal second quarter, adjusted operating earnings per share (EPS) were $1.20, which beat the Zacks Consensus Estimate of $1.13. However, the metric fell 17.8% from $1.46 per share reported in the prior-year quarter.Quarterly revenues of $336.7 million missed the consensus mark of $340 million. The top line also declined 7.8% on a year-over-year basis, due to the Del Taco refranchising transactions.Franchise rental revenues increased 0.6% year over year to $86.3 million. Franchise royalties and other revenues decreased 2.1% year over year to $53.9 million.Franchise contributions to advertising and other services revenues declined 5.9% year over year to $53.9 million. Company restaurant sales in the quarter were $142.5 million, down from $167.1 million reported in the prior-year quarter.JACK’s Comps DiscussionIn the quarter under review, company-owned same-store sales decreased 4% compared with a decline of 0.6% reported in the prior-year quarter.Same-store sales at franchised stores increased 4.5% against a 2.6% decline reported in the prior-year quarter.Systemwide same-store sales dropped 4.4% compared with a 2.5% decrease reported in the year-ago quarter. Reduced transactions and an unfavorable mix shift caused this downside.Del Taco’s PerformanceIn second-quarter fiscal 2025, company-owned same-store sales moved down 1.7% year over year, comprising the decline in franchise same-store and system-operated same-store sales of 4.2% and 3.6%, respectively.Operating Highlights of JACKIn the fiscal second quarter, the total restaurant-level adjusted margin was 19.6% compared with 23.6% reported in the prior-year quarter.Food and packaging costs (as a percentage of company restaurant sales) fell 80 basis points year over year to 26.7%.The total franchise level margin was 40% in the fiscal second quarter, down from 40.4% reported in the prior-year quarter.In the quarter under review, selling, general and administrative expenses accounted for 10.5% of total revenues, up from 10.3% in the prior-year quarter.JACK’s Balance SheetAs of April 13, 2025, cash totaled $15.8 million compared with $24.7 million as of Sept. 29, 2024. Long-term debt (net of current maturities) totaled $1.69 billion as of April 13, 2025, compared with $1.7 billion as of Sept. 29, 2024.Jack in the Box did not repurchase any shares of its common stock during the fiscal second quarter. As of quarter-end, the company still had $175 million available under its board-approved stock buyback program. Additionally, the company previously announced the discontinuation of its dividend.JACK’s Fiscal 2025 OutlookThe company confirmed all figures in the guidance remain unchanged from those issued on April 23, 2025, as part of the "JACK on Track" plan announcement.For fiscal 2025, management anticipates adjusted EBITDA to be in the range of $282-$292 million. Company-wide capital expenditures in fiscal 2025 are now expected in the range of $100-$105 million.Jack in the Box restaurant level margin is expected to be 19-21%. The same-store sales for Jack in the Box are anticipated to be down low to mid-single digits compared with 2024.Company-wide operating EPS for fiscal 2025 is expected to be in the range of $5.05-$5.40.Zacks Rank of JACKJACK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Retail-Wholesale ReleasesDomino's Pizza, Inc. DPZ reported first-quarter fiscal 2025 results with earnings beating the Zacks Consensus Estimate, while revenues missed the same. The company reported adjusted EPS of $4.33, up from $3.58 reported in the year-ago quarter. Revenues of $1.11 billion increased 2.5% on a year-over-year basis.Domino's reported benefits from the Hungry for MORE strategy during the quarter, registering growth in market share across the U.S. and international segments. DPZ continued to manage controllable factors well despite a tough global environment. The strategy supported an increase in sales, store openings and profits. These factors are important for long-term value creation for franchisees and shareholders.Brinker International, Inc. EAT reported third-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The company reported adjusted EPS of $2.66, up from $1.24 reported in the year-ago quarter. Revenues of $1.43 billion increased 27.2% on a year-over-year basis.Brinker’s quarterly performance benefited from strong fundamentals, leading to better guest experience and steady business growth. The ongoing increase in traffic continues to drive the company’s performance.YUM! Brands, Inc. YUM reported first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The company posted adjusted EPS of $1.30, up from $1.15 reported in the year-ago quarter. Revenues of $1.79 billion increased 12% on a year-over-year basis.The company’s performance reflects solid contributions from the KFC and Taco Bell divisions. On the digital front, the company reported meaningful progress, with digital sales nearing $9 billion and accounting for 55% of total sales. Franchisee feedback on Yum!’s proprietary digital platform, Byte by Yum!, remained positive, reinforcing the brand’s strategic push toward tech-driven growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Domino's Pizza Inc (DPZ): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks