JACK - Jack In The Box Non-GAAP EPS of $1.47 beats by $0.25 revenue of $395.74M beats by $10.3M

2023-05-17 09:11:59 ET

• Jack In The Box press release ( NASDAQ: JACK ): Q2 Non-GAAP EPS of $1.47 beats by $0.25 .
• Revenue of $395.74M (+22.8% Y/Y) beats by $10.3M .

• Del Taco same-store sales of +3.2%; +25.5% on a three-year basis

• Jack in the Box systemwide sales growth of +9.8%, Del Taco systemwide sales growth of +3.2%

• Company-wide Guidance

  • FY 2023 CapEx & Other Investments Guidance of $75-90 million (unchanged from previous)
    • Capital expenditures + franchise tenant improvement allowances and incentives
  • FY 2023 SG&A Guidance of $170-180 million (previously $160-170 million)
    • Increase is mainly due to higher incentive-based compensation, as well as a year-to-date net legal charge of $5.0 million related to two litigation matters, which are not expected to reoccur
    • Includes ~$3 million in savings from refranchising, primarily related to a reduction in selling expense
    • Excludes net COLI gains ($6.6 million gain year-to-date)
    • Long-term G&A target, without selling/advertising expense, remains 2.3-2.5% of systemwide sales
  • FY 2023 Company-owned Commodity Guidance up 8-10% vs. 2022 (previously 9-11%)
  • FY 2023 Company-owned Wage Rate Guidance up 3-6% vs. 2022 (unchanged from previous)
  • FY 2023 Operating EPS Guidance of $5.90-$6.10 (previously $5.25-5.65)
    • Includes the $0.22 negative impact from the legal charge in Q1 2023, which is not expected to reoccur in Q1 2024
    • Includes the $0.05 net positive impact from the two litigation matters in Q2 2023, which are not expected to reoccur in Q2 2024
    • Includes the $0.23 positive impact from the Hawaii transaction in Q1 2023, which should be noted as a one-time item that will not occur in Q1 2024
    • Includes the $0.11 negative impact associated with store-level technology and POS project investments (previously $0.22, lower due to certain projects pushing forward to 2024)
    • Includes impact from expected refranchising of 65-85 total Del Taco restaurants in FY 2023
  • The company now plans to execute at least $70 million in share repurchases in FY 2023

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