JACK - Jack In The Box benefits from large order sizes

Jack In The Box (JACK) is 5.86% higher in premarket trading after topping Q3 estimates off a 12.2% jump in systemwide comparable sales. The increase in comparable sales was driven by a 21.9% increase in check as consumers appear to still be ordering in bulk for lunches and dinners with one family member picking up the group's order. Cowen analyst Andrew Charles called the report a strong end to fiscal 2020 for the restaurant company. "Beyond sales, we note a $5M tailwind from lower SG&A (including ~$4M lower stock-based comp year over year), while store-level margins of 27.0% were in excess of our 23.3% estimate (vs. 23.7% Consensus Metrix). Despite the improving sales, we note allowance for doubtful accounts as a percentage of trade receivables plateaued at 7% of sales in fiscal 4Q, in-line with 3Q's level following an improvement from 17% in fiscal 1Q to 11% in fiscal 2Q," updates Charles.Previously:

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Jack In The Box benefits from large order sizes