Shares of fast-food chain Jack in the Box (JACK) are up 60 cents, almost 3%, at $23.05 in late trading after the company reported fiscal Q2 revenue and earnings per share that topped analysts’ expectations, and projected this year’s earnings per share ahead of consensus.
Revenue in the three months ended April 15th rose slightly, year over year, to $506.63 million, yielding EPS of 27 cents, on a non-GAAP basis, which excludes results from refranchising.
Analysts had been projecting $503 million and 23 cents.
Same-store sales for the company’s owned outlets rose 5.6% in the quarter, while franchise store sales were up 3.6%. The company’sQdoba outlets saw a total 3% rise in same-store sales.
CEO and chairman Linda Lang said the same-store growth was “driven by a combination of traffic growth and an increase in average check,” and were largely “driven by the investments we have made to enhance the entire guest experience at the Jack in the Box brand, including the substantial completion of our system-wide re-image program in January.”
Consolidated operating margin rose to 15.5% from 12.3% a year earlier.
The company ended the quarter with 2,242 Jack restaurants, including 1,641 franchise outlets, and 605 Qdoba locations.
For the full year, the company sees EPS in a range of $1.28 to $1.50, better than the average estimate of $1.34. The company expects a 3.5% to 4.5% rise in same-store sales at its owned Jack-in-the-Box properties this year.
Management will host aconference callwith analysts tomorrow morning at 10 am, Eastern time, and you can catch the webcast of it here.
Correction: A prior version of the post erroneously compared JACK’s non-GAAP FYQ2 EPS to the GAAP consensus estimate. In fact, JACK’s 27 cents in non-GAAP EPS beat the consensus 23-cent estimate for FYQ2. My apologies for any confusion caused by the error.
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