Fast-food chain Jack in the Box (NASDAQ: JACK) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Jack in the Box met analysts’ revenue expectations last quarter, reporting revenues of $469.4 million, down 3.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Jack in the Box a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Jack in the Box’s revenue to decline 6.5% year on year to $341.6 million, improving from the 7.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Jack in the Box has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Jack in the Box’s peers in the traditional fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Papa John's posted flat year-on-year revenue, beating analysts’ expectations by 0.6%, and Dutch Bros reported revenues up 29.1%, topping estimates by 3%. Papa John's traded up 14.8% following the results while Dutch Bros was also up 9%.
Read our full analysis of Papa John’s results here and Dutch Bros’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 11% on average over the last month. Jack in the Box is up 18.8% during the same time and is heading into earnings with an average analyst price target of $35.76 (compared to the current share price of $29.00).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
