JACK - Jack in the Box falls sharply after wage commodity costs whack margins

Jack In The Box (NASDAQ:JACK) is down sharply in early trading after FQ4 revenue arrived short of expectations. Systemwide sales growth was up 8.6% in FQ4 and same-store sales growth of 0.1% was recorded. Company-operated same-store sales declined 4.4% with decreases in traffic only partially offset by increases in average check. Franchise same-store sales were up 0.6%, with increases in average check partially offset by a decrease in traffic. Restaurant-level margin fell to 20.1%. The restaurant operator says the decrease was primarily driven by the take back of lower-volume franchise restaurants, increases in food and packaging costs, wage inflation of 9.8% and increases in utilities, and maintenance and repair costs. Commodity costs increased in the quarter by approximately 11.8%, primarily due to increases in pork, beef and beverages. Jack in the Box reiterated its prior guidance issued at its Investor Day event. Shares of JACK are down 7.11% premarket to

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Jack in the Box falls sharply after wage, commodity costs whack margins