Unlike its menu options, which are regularly updated, the impressive performance at Jack in the Box
In the second quarter, Jack in the Box increased earnings by 25% to $27.2 million, or $0.80 per share, easily topping estimates of $0.70 per share. Revenues were up 6.8% to $660.7 million and comps gained 6.4% in the quarter as average checks increased and more transactions occurred. It's even giving Chipotle
In an effort to keep customers coming back hungry for more, Jack in the Box hasn't been hesitant about updating its menu. In the second quarter, it added new choices, including a steak 'n' mushroom sandwich, grilled cheese for the kiddies, and a mint shake with the help of Tootsie Roll's
In addition to its successful operations, Jack in the Box is also taking care of matters on the business side. It prepaid $60 million of its $475 million term loan in the second quarter, reducing borrowing rates by 25 basis points and generating an annualized interest savings of $2 million.
The company obviously feels strongly about its prospects and presented third-quarter estimates to back it up. It expects to report earnings of $0.85 to $0.89 per share even with an expected 5% to 6% increase in beef prices. Analysts were expecting earnings of just $0.82 per share. The company also anticipates comps to remain strong with a growth rate of 5% to 6%. For the year, it raised its guidance to a range of $3.45 to $3.50 per share with comps expected to grow by 5% to 6%.
It has obviously been a remarkable run, and it's projected to continue for some time. The company certainly seems serious about its plans to compete with the big boys such as McDonald's
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