JACK - Jack in the Box stock jumps on strong comparable sales upbeat outlook

2023-05-17 08:46:49 ET

Jack in the Box ( NASDAQ: JACK ) shares rose sharply after the fast-food chain topped Q2 expectations on top and bottom lines as same-store sales surged year over year.

The California-based chain reported $1.47 for the fiscal second quarter on a 22.8% rise in revenue year over year to $395.7M. The consensus EPS and revenue expectations stood at $1.22 and $385.44M, respectively. Same-store sales jumped 9.5% from Q2 2022 and 29.3% from the same period in 2019.

"The momentum in our business continued throughout the second quarter, reflected in outstanding sales, positive net unit growth, improved margin performance and the signing of a development agreement for expansion into Mexico,” CEO Darin Harris said. “Over the last year we have been focused on the execution of our strategy, and the results are beginning to show. We look forward to continued strength in the back half of 2023, while remaining focused on what is most important: expanding our reach, offering guests what they want when they want it, and a relentless pursuit to improve restaurant level economics for Jack and Del Taco franchisees."

For the full year, management hiked earnings forecasts and cut commodity inflation expectations. Company-owned commodity guidance is now in a rang between 8 %to 10%, down from a prior 9% to 11% forecast. Full-year EPS guidance now stands at $5.90 to $6.10, up from a previous guide of between $5.25 and $5.65. The consensus expectation stood at $5.90 prior to the print.

Same store sales guidance of mid-to-high single digit growth as compared to 2022 also reflected a raised forecast from a prior low-single-digit projection.

Shares of Jack in the Box ( JACK ) jumped 3.4% shortly after the print .

For further details see: